From Paper to Partnership: How Zelis Helped an IDN Digitize $500M in Payments
In the complex world of healthcare finance, trust and transparency between payers and providers are often elusive. But for one Arizona-based integrated delivery network (IDN), partnering with Zelis—a leading provider of healthcare technology solutions—marked a turning point. By implementing Zelis’ Advanced Payments Platform (ZAPP), the IDN transformed a fragmented, paper-dependent payment system into a streamlined digital ecosystem, saving time, cutting costs, and strengthening payer-provider relationships.
Recently recognized with a KLAS Points of Light Award, the initiative offers a blueprint for how healthcare organizations can unify financial workflows and foster collaboration at scale.
Fragmentation and Friction with Outdated Systems
The IDN was challenged with a payment system bogged down by manual processes. Paper checks were the norm, resulting in payment delays of up to 60 days, increased fraud risk, and substantial, mounting administrative costs. The lack of real-time data exchange between multiple payers and providers created friction, eroded trust, and made reconciliation a costly guessing game.
For IDNs, these issues are magnified. Their complex structures—spanning hospitals, outpatient clinics, and specialty care—create fragmented financial workflows. The sheer volume and variability of claims make manual processes untenable, while the pressure to integrate care and cost under value-based models demands seamless financial operations.
The Turning Point: A Unified Platform for Payers and Providers
To overcome its fragmented payment workflows, the IDN implemented ZAPP—a solution purpose-built to serve both payers and providers. ZAPP digitizes and centralizes payment operations while enabling secure, real-time data exchange . For providers, it delivers instant access to remittance data and payment tracking, reducing reliance on paper checks and manual reconciliation. For payers, it streamlines disbursements, improves forecasting, and reduces administrative overhead.
By creating a shared source of truth, ZAPP transformed the payer-provider relationship from transactional to collaborative—minimizing disputes, enhancing transparency, and fostering mutual accountability.
The Results: Speed, Savings, and Scalability
The impact was immediate and measurable. Within months, the IDN processed over $500 million in digital payments, brought 80% of transactions to fully electronic formats, reduced payment turnaround times from two months to just two days, and saved $400,000 by cutting paper check volume.
The operational gains translated to stronger relationships between the IDN’s payers and providers, improved financial forecasting, and a lighter administrative burden for staff.
The Bigger Picture: A Model for Modernization
As healthcare organizations grapple with rising costs, staffing shortages, and regulatory pressures, digital transformation in financial operations is no longer optional—it’s essential.
According to 2024 CAQH Index, manual claims and payment processes cost the healthcare industry nearly $25 billion annually. Automating these workflows could yield massive savings and reduce friction across the care continuum.
For IDNs, the ability to unify financial workflows across diverse entities is critical for supporting value-based care models and aligning clinical and financial goals. This initiative demonstrates that payer-provider collaboration isn’t just possible—it’s scalable.
What’s Next: Toward 100% Digital
With 80% of payments now digital, the IDN is aiming for full adoption. Zelis continues to refine its platform, integrating AI-driven analytics and expanding its payer network to support broader collaboration.
As the healthcare industry evolves, partnerships like this one offer a glimpse into a future where payment isn’t just a transaction—it’s a catalyst for transformation.
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