The Client
A renowned billing company based in California.
Challenge:
The client was losing out a major portion of its revenue to denials which were impacting its balance sheet severely. So, the client was looking for a robust solution to reduce denial incidence and improve accounts receivable collections
Solution :
- We started the project by understanding the root cause of the denials. For this we analyzed three months of denial data through a root cause analysis method
- Our AR experts then studied, compared and analyzed denial and error occurrences, including the type and frequency
- Based on the study, we recommended the corrective actions which included-
- Slitting AR by age bucket, to prioritize the AR based on severity
- Implementing state-of-the-art trend and pattern identification practices, to collect money in bulk denials
- Impart advanced training for documentation and escalation, which helped in early detection of errors, sending appropriate follow ups and taking corrective actions pro-actively
Results
Our solution benefited our client in the following manner:
- The percentage of denials showed a 30% drop, three month into the project. And it further reduced by 80% in the next 3 months
- The backlog of denials started falling drastically month over month, until they were completely erased
- All the claims were collected on time
As a result of all these benefits, there was substantial savings, which translated into 40% increase in revenues within 6 months of implementation.
Contact us now to know more about our account receivable services.
