Electronic Data Interchange (EDI)

Posted Tuesday, January 22, 2019

Did You Know? EDI systems, programs, and processes have been around since the 1960s 

Growing Options to Suit the Needs of Physicians

CuraScript SD Offers Various Types of EDI Transmissions, Providing Streamlined Solutions to Physicians

01 | Understanding EDI

Electronic Data Interchange or EDI is the exchange of information from one party to another strictly electronically. This process is initiated when a connection is established between two agreeing parties, typically requiring a technology team or third-party to establish. Once the connection is made, tested, and verified; information can be digitally sent and received between the two entities automatically. There are different types of transmissions for both inbound and outbound data, and available transmission types will vary between parties.  

For Example:

A physician’s office sets up a connection with a distributor so they may electronically order a product. Within this same connection, the physician also sets up a transmission type that allows them to receive invoices electronically. The purchase order is outbound data for the practice, and the invoice is inbound data.

02 | How is EDI Different from E-commerce?

EDI differs in several ways from typical online e-commerce. EDI allows for different connections across multiple parties to have one singular end-point. Meaning a purchaser could order from multiple vendors simultaneously and receive all the data and records in one place, under one system. There is also standardization requirements in EDI, meaning data must have specific formatting and fields in order to be transmitted over EDI. EDI is the commonly used and widely integrated technology in business-to-business transactions. 

03 | Benefits

Some notable cost/time-saving benefits are:

  • Reduction in human error. EDI works off specific information and parameters, once all that information is in the system, it is recalled for future use. There is no guessing what information is going in and out; it is always clearly defined.
  • Convenience is a major factor in EDI transmissions. With all data in one central location, it is easy to assess both outbound and inbound information.
  • Efficiency is almost immediate as the need for manual processing or organization is eliminated. Transmissions are timely, and the information is quickly available.

For More Information

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