The State of New York tested the feasibility of a radical new administrative structure for health care financing--the Single Payer Authority concept--through a demonstration designed to reduce inefficiencies and complexities involved with claims processing, billing, and payment systems. This project tested the practicability of implementing the following changes in Northeastern New York first for hospitals and free standing clinics and later for physicians: (1) electronic communications linkages among all involved parties; (2) integrated claims development and automated claims processing systems; (3) on-line eligibility verification and utilization controls; (4) uniform insurance protocols and coordination of benefits; and (5) electronic cash flow management.