Redesigned Accounting Process: Cogneesol Increased Accuracy up to 100% and saved $1.4mn through Streamlined Workflow

The Client:

A non-profit organization that works in the arena of peaceful resolution of conflicts.

Scope of Work

Complete support with:

The Client

Process Bottlenecks

The client’s operations ailed from ineffective processes of assigning lost or ignored claims, absence of process documentation for handling denials, payment applications inefficiency leading to the following:

  • $ 0.50 Mn in ignored claims
  • Denials pegged at 9% as against the industry rate of 2%
  • Underpayment or partially paid claims to the tune of $ 2 Mn outstanding from last 2 years impacting cash inflow
  • Significant unapplied cash leading to collection issues

Cogneesol’s Optimization Solution

Our team of accounting experts undertook thorough due diligence to identify process inefficiencies, reduce denials, and catch potential denials before filing. Their in-depth study led to the following:

  • Restructuring and redesigning of underpayments process, and the assigning of a dedicated resource to track and recover payments
  • Tracking lost and ignored claims in an automated worksheet clearly identifying responsibilities
  • Liaising with a provider to retrieve electronic remittance advice messages (ERAs) for untraceable payments
  • Building of end-to-end process documentation

The clean-up of our payments process has put our house in order. We feel very confident to increase our scope and scale, thanks to Cogneesol’s complete help with the accounting. It’s a relief to be compliant again!

Impact Delivered

The concerted efforts driven by the Cogneesol team with the guidance of the client’s accounting team led to the following benefits:

  • Improved denial rate from 9% (worth 1.4Mn) to 1.5%; reduced ‘Missing Information’ denial from 25% to 0.05%; eliminated duplicate claims from 18% to nil
  • 95% collection of ‘Lost and Ignored’ claims within 45 days
  • DSO reduced for partially paid claims from over 360 days to 45 days with an 80% debt collection rate
  • 100% accuracy and timeliness of cash applications

Client Testimonials

It is always a pleasure to learn that the work we do has positively impacted our clients and that they are happy to share their experiences.

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