OODA Health, in partnership with Blue Shield of California, Dignity Health and Hill Physicians, has launched a pilot program for a “retail-like” point-of-service payment system that it hopes will reduce the time and money it takes healthcare organizations to process claims.

Citing a study recently published in the Journal of the American Medical Association (JAMA) that showed administrative billing activities can boost healthcare costs by as much as 25%, the California-based startup believes just that.

“Consumers still experience administrative friction with the healthcare system,” Dignity Health’s senior vice president of finance and revenue cycle management, Tim Panks, told HealthLeaders‘ Alexandra Wilson Pecci. “We have a need to automate disparate administrative processes behind-the-scenes in a seamless, efficient manner.”

The program aims to streamline the authorization process for many routine procedures and appointments, allowing plan members to swipe a card and instantaneously pay providers.

“When payers and providers can collaborate in real time, we can eliminate a lot of the confusion about payment for health services,” said OODA Health cofounder Sophie Pinkard. “The consumer can be sure in advance whether they have the right pre-authorization.”

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