Payment Automation Yields Big Benefits For Provider

This case study explores how a medium-sized provider organization replaced their bank EOB processing system and lockbox with payment automation and experienced big benefits.

Originally, this provider organization had a staff of 35 people processing EOB remittances. In spite of the sizable dedicated staff, there no automated or streamlined process for posting commercial insurance payments existed. Payments often took upwards of 30 days to post, and errors were often made in these postings. The team was burdened with a manual, labor intensive process. Regularly revisiting items that had already been posted cost the organization time and money through posting labor and rework.

The organization made the decision to outsource the payment posting of EOBs to their bank. While this process streamlined some of their lockbox processing, the bank's inability to lift accurate data from healthcare EOBs never created the quality, reliability, and cost savings expected. In fact, the data accuracy and quality was so low, additional FTEs (full-time employees) were required to correct the ERA (electronic remittance advice) files received from the bank before posting the payments into their patient accounting systems.

Clearly, it was essential for the organization to take back the reins on its payment processes. Company leadership set out to find a better EOB automation and lockbox solution that would offer higher automatic posting rates and improve data accuracy, especially in translating denial codes.

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