Healthcare Industry Case Study

Medicaid was having trouble keeping fraudulent doctors and health care providers off of a big state's pay lists because so many exclusion lists had to be manually examined and compared. S3's client was concerned their next federal audit would result in huge fines.

The Crisis:

Medicaid had a problem. A big one, of course. 7 databases. 7 different formats. And seven different locations. These were lists of names that had to be searched individually to prevent Medicaid fraud. Available technology was inadequate. The human process was too slow. Too imprecise. And required too many people.

Exclusion lists had to be scanned. Partial names checked for similarities. Aliases and addresses needed comparing. A Medicaid enrollment program in a large state demands automation. And a system that can bring together clean in one place for workers to search through and work with.

"A Medicaid enrollment program in one of the 5 largest states demands automation."

S3 was asked to automate the process of qualifying applicants to be Medicaid providers. The challenge involved a complex provider database with extensive data that has been maintained in two different transactional systems over the past three decades. Various state and federal agencies maintain lists of people that are excluded from being named Medicaid providers. Technology shortfalls were causing processors to search most of these almost manually.

Protocols:

In the past, processors took up to an hour to inspect the exclusion lists and to enroll a new provider. In addition, because of the human element, they often missed critical information due to data quality issues within their files. Processors searched each list manually using the name, common name variants, tax id, and address parts to find providers on the list. The owners and any associated providers were also searched in this manner. Identifying providers was made more challenging by the inconsistent data entry methods and poor data quality methods on each exclusion list.

"In the past, processors took up to an hour to inspect the exclusion lists and to enroll a new provider."

Challenge:

The state acknowledged its methodology of processing provider applications and verifying provider eligibility was time consuming, and that the process introduced opportunities for error. There was also the risk of penalties to the state caused by mistakenly enrolling illegal providers. The state simply needed to find a more efficient and error-proof enrollment process to improve productivity and reduce the risk of penalizations.

Solution:

Using an interactive match on a hosted solution, S3 addressed both provider duplication and exclusion. S3's proprietary TeraMatch® streamlined the verification of new applicants seeking to be listed as Medicaid providers. The identification of providers already enrolled but with duplicate identification numbers was clarified through reports and workflows. S3 addressed identifying all of the excluded providers by providing a single interactive, point-of-service match, which compares the provider data to all of the exclusions lists. And does that at the same time and in the same place. The system also readily identified previously qualified Medicaid providers that had been sanctioned, and easily tracked their removal.

"Medicaid simply needed to find a more efficient and error-proof enrollment process to improve productivity and reduce the risk of penalizations."

Benefits:

By using S3's solution, the state was able to avoid the cost of 7 Full-Time Equivalent employees per year. And reduce the number of duplicate enrollments. Excluded providers were more accurately identified and taxpayers were saved several million dollars per year through increased productivity and risk avoidance.










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