Before DLC

• Lack of in-house expertise to manage cost center mapping during system migration
• Delays in physician charge processing, causing reimbursement bottlenecks
• Manual data entry processes prone to errors and inefficiencies
• Missing or incorrect cost centers disrupting financial reporting accuracy
• Ongoing acquisition integration stalled efforts to replace key staff

After DLC

• Accurate and timely assignment of cost centers, reducing billing delays by 10%
• Automated financial operations, minimizing manual data entry errors
• 55% reduction in time spent on revenue mapping, now requiring only 10 days per month
• Improved visibility into physician performance through enhanced financial reporting
• Seamless transition from Lawson to Workday, maintaining data integrity across systems

Project Overview

A client, a comprehensive healthcare provider encompassing hospitals, clinics, mental health services, and home care, encountered significant challenges with charge processing inefficiencies and delayed reimbursements, impacting cash flow and operational efficiency.

As a result, they sought external expertise from the DLC team to enhance financial reporting integrity, optimize cost center mapping, and eliminate bottlenecks in their revenue cycle.

Business Challenge

The client encountered delays in processing physician charges due to missing cost centers, which caused them to get stuck in the work queue. This issue disrupted timely revenue allocation and delayed reimbursements from insurance providers, posing financial risks.

The complexity of their physician compensation model compounded these challenges, leading to inconsistent cost center assignments.

The situation was further complicated by:

• Legacy systems requiring manual data entry, lacking automated workflows.
• The transition from Lawson to Workday, increasing operational complexity.
• The departure of a key employee responsible for cost center assignments during a broader acquisition integration.

Without an immediate replacement, the client needed DLC’s external support to resolve these issues quickly and ensure smooth financial operations.

Approach

DLC deployed an interim controller to analyze, map, and streamline the cost center mapping process during the client’s transition from Lawson to Workday.

Working closely with the client’s IT and finance departments, we provided the following solutions:

• Legacy Cost Center Mapping: Conducted a comprehensive analysis to map all physician legacy cost centers to new system equivalents.
• Data Validation: Performed rigorous testing to ensure data integrity across systems during the migration process.
• Identification of Missing Cost Centers: Collaborated with IT to identify and reclassify incorrect or missing cost centers posted to miscellaneous accounts.
• Reclassification Process: Implemented a structured methodology to align physician charges with the correct cost centers for accurate financial reporting.

Results

Through DLC’s expertise in financial process optimization, the client successfully navigated a complex system transition, eliminated revenue bottlenecks, and improved operational efficiencies. The streamlined revenue mapping processes and automated workflows have  established a foundation for sustained financial success across the organization.

By reducing manual workloads, staff were able to focus on higher-value, strategic tasks, enhancing productivity across multiple departments. Additionally, greater financial visibility empowered leadership with actionable insights into physician performance, enabling data-driven decisions at the leadership level.

The client also received the following benefits:

• 10% Reduction in Billing Delays: Timely and accurate assignment of cost centers minimized bottlenecks in the work queue, ensuring faster reimbursement.
• 55% Time Savings: Streamlined the mapping process, reducing the time required from full-time dedication to just 10 days per month.
• Enhanced Accuracy: Automated data entry reduced manual errors, improving financial reporting integrity.
• Streamlined Revenue Mapping: Developed a comprehensive cost center mapping table to align with EPIC’s physician compensation models, increasing transparency and accessibility of financial data for decision-makers
• Automated Financial Operations: Implemented shared cost allocation processes within Workday, enabling the automation of key financial tasks and significantly reducing ongoing manual entry errors.