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With established message formats and standards, electronic data exchange (EDI) transactions safely transport data between healthcare organisations, insurers, and patients. The EDI system decreases data exchange and interpretation costs, addresses conversion problems, and enhances healthcare interoperability. All EDI transactions in the healthcare industry must adhere to common standards in order for health plans, clearinghouses, and healthcare organisations to exchange medical records electronically in a HIPAA-compliant manner. Electronic health records are secure and accurate thanks to EDI solutions. All parties involved in the integration of medical EDI must adhere to precise data specifications. For instance, if the information is sent to a computer that will receive it, the programmed for electronic data interchange converts it into a language that is not human. Every documentation set used by electronic data solutions has a standard code given to it.