Streamline Accounts Receivable Process to Improve Cash Flow
Key Business Challenges and Project Objectives:
As a Healthcare provider, our client responds to sufficient customer demand. Similar to many businesses, although continuing to grow, cashflow into the business was a significant challenge on a monthly basis. Crystal Lean Solutions were invited to work with this provider to help streamline the accounts receivable process. In this environment, the Insurance companies represent the customer base, so the primary objectives of the project were:
- To increase the value of claims process monthly by 30%
- To increase the number of claims processed per month by 50%
CLS Approach and Changes Implemented:
Working with the cross functional project team, we delivered training on Lean principles and the DMAIC methodology. The team then mapped out the current accounts receivable process. One source of waste identified was the number of returned claim forms from the Insurance companies. The team completed a Pareto analysis of the main reasons for the returns. On reviewing the data and the non-value added activities in the accounts payable process, the following changes were identified and implemented:
- A cross training matrix was developed and implemented in finance team
- A standard checklist to review each completed form was implemented
- A schedule of activities of the process was developed and agreed
- Standardisation of codes for the claim form
- Set up standard location for claim forms status
Results / Outcomes:
- Increased cash flow from claims by 45% monthly
- Increased number of claims processed by 54% monthly
- Increased level of skills in within finance team to increase flexibility and flow of claims
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