Re-engineered Cash Application Process for a Multi-Location Healthcare Group

The Challenge: Volumes, Variability, and Visibility

The client’s AR team struggled under the weight of transactional complexity, data inconsistencies, and fragmented systems. These issues not only delayed cash application but also hindered real-time visibility into receivables and disrupted accurate financial close cycles.

Key Barriers:

• Delayed Processing: High-volume daily transactions created backlogs in posting incoming payments, distorting cash flow visibility and delaying credit realization.
• Data Discrepancies: Manual entry and data mismatches between remittances and invoice records led to reconciliation errors and increased correction workloads.
• Payment Complexity: A diverse mix of payment sources (insurance, third-party, patient co-pays) and formats made matching payments to open invoices increasingly difficult.
• Timing Misalignments: Asynchronous processing across banks and financial platforms introduced discrepancies that complicated real-time reporting.
• Insufficient Documentation: Incomplete or vague remittance information slowed down accurate payment matching, increasing unapplied cash and reporting lags.

These challenges collectively impacted the client’s ability to manage cash flow efficiently, minimize DSO, and generate timely, accurate financial reports—especially critical in a multi-location healthcare setting.

The ATT Approach: Purpose-Built Automation with Compliance at Core

We conducted a comprehensive diagnostic of the client’s F&A operations and redesigned the AR process architecture for control, speed, and precision. ATT’s finance and automation experts jointly deployed a UiPath-driven RPA bot tailored to mirror the client’s AR logic, payment channels, and ERP ecosystem.

Solution Highlights:

• Automated Extraction & Validation: Extracted remittance details from payment PDFs and validated each transaction line item to ensure data accuracy before processing.
• ERP Sync: Integrated validated remittance data with the ERP system for real-time cross-verification and faster invoice matching.
• Smart Matching Logic: Used automation to cross-reference payer inputs (e.g., rates, service codes, hours) with invoice records to detect and resolve discrepancies early.
• Rule-Based Application: Applied payments based on pre-defined business rules and payer-specific logic to ensure consistency and auditability.
• Error-Proof Posting: Enabled same-day system-driven posting with built-in exception alerts and human oversight for high-risk entries.

Tangible Results: Faster Cycles, Smarter Cash Flow

Operational Wins

1. 33% reduction in processing time — cycle time cut from 36 to 24 hours.
2. Same-day postings enabled real-time credit restoration and cash visibility.
3. 95% accuracy in straight-through processing (up from 70%), reducing reconciliation friction.
4. 80% automation coverage, cutting manual effort and operational costs by 40%
5. 95% decrease in manual data entry errors due to seamless ERP integration
6. 80% reduction in pending transactions, leading to faster reconciliations and timely reporting

Financial Impact

• Recovered $4.5M annually from previously lost revenue—cutting revenue leakage by 90% (down from $5M annually)
• Saved $2.5M each year by optimizing financial processes and reducing manual workload
• Improved cash flow by 40%, accelerating credit realization through faster AR cycles
• Reduced outstanding payments by 85%, enhancing liquidity and operational agility
• Achieved 100% compliance with internal policies and healthcare finance regulations

Scalability

• Enabled seamless scale-up of transaction processing without increasing headcount
• Reduced reporting risk and ensured faster, audit-ready month-end closes