What does Electronic Data Interchange (EDI) primarily facilitate?

Electronic Data Interchange (EDI) primarily facilitates data transfer between organizations by standardizing the electronic exchange of business documents. It allows different entities, such as healthcare providers and insurers, to share critical information, such as claims, invoices, and patient data, in a structured format that can be easily interpreted and processed by computer systems. EDI streamlines operations by reducing the frequency of manual data entry and minimizing errors, which contributes to faster transaction times and increased efficiency in various industries, especially in healthcare. The use of standardized formats ensures that important data can be exchanged seamlessly, aligning different organizations' systems and workflows.