What is the primary function of Electronic Data Interchange (EDI) in healthcare?

The primary function of Electronic Data Interchange (EDI) in healthcare is to facilitate standardized data exchange between healthcare providers and payers. EDI allows for the efficient transmission of claims, payments, eligibility inquiries, and other pertinent information while ensuring the data conforms to established formats and standards. This standardization reduces errors, speeds up processing times, and improves communication between entities involved in healthcare transactions.

By using EDI, healthcare organizations can automate workflows, leading to increased efficiency and reduced administrative burdens. This is particularly important in an industry where timely access to accurate information is critical for patient care and financial operations.

The other options focus on aspects that do not fully encompass EDI's core purpose. While EDI may contribute to reducing manual processes, it does not completely replace all manual processes in healthcare. Similarly, managing patient records and limiting access to sensitive information are important in healthcare, but they are not the central aim of EDI, which is primarily about enabling seamless and structured data exchanges.