
Executive Summary
A premier $3.5 billion East Coast Academic Medical Center was losing nearly $40 million annually due to a 14% claims denial rate and fragmented financial data stemming from a recent merger. These inefficiencies were severely undermining the organization’s Revenue Cycle Management (RCM), stalling strategic growth and straining operational resources. To reverse the trend, the organization deployed OTLEN’s AI-powered Revenue Operations (RevOps) platform. This platform became the foundation of a next-generation RCM strategy, automating claims workflows using Natural Language Processing (NLP) and Robotic Process Automation (RPA), unifying financial data across multiple EHR systems, and delivering predictive insights through embedded analytics.
By streamlining the entire revenue cycle from patient registration and eligibility verification to claims submission, denial management, and reimbursement, the platform enabled the organization to proactively address revenue leakage and operational inefficiencies. Within just 12 months, the center achieved a 32% increase in net revenue capture, reduced claims denials by 64%, and realized a 7x return on investment. This partnership didn’t just improve performance; it redefined the organization’s financial trajectory and operational agility, setting a new benchmark for AI-driven revenue cycle transformation in academic healthcare.
At a Glance: Client’s Profile
- Client: A Premier East Coast Academic Medical Center.
- Industry: Academic Healthcare & Clinical Research, specializing in oncology, advanced cardiac imaging, neurocritical care, organ transplantation, integrated behavioral health, and continuing medical education for clinicians.
- Scope: 3 Hospitals, 45+ Specialty Clinics, a Major Research Institute.
- Annual Encounters: 2.5M Outpatient Visits, 100K Inpatient Admissions.
- Annual Gross Revenue: $3.5 Billion.
Premier EC Academic Medical Center
A leading institution with 3 hospitals, 45+ specialty clinics, a major research institute.
Significant Scale
2.5M outpatient visits & 100K inpatient admissions annually, $3.5B in gross revenue.
Technology Challenge
Multiple, non-integrated EHR systems post-merger led to fragmented data.
OTLEN’s Solution
AI-powered Revenue Operations (RevOps) platform, rolled out over 6 months.
Company Background & The Challenge
As a nationally recognized academic medical center generating over $3.5 billion in annual revenue, the client appeared to be a model of clinical and operational success. Yet beneath this impressive surface, the organization was grappling with deep operational friction that threatened its financial stability. A recent merger had left it with three non-integrated Electronic Health Record (EHR) systems, creating fragmented data silos that obscured visibility into revenue operations.
This lack of a unified infrastructure made it nearly impossible to reconcile billing, claims, and forecasting across departments. As a result, the organization faced an estimated $40 million in annual revenue leakage, a dangerously high 14% claims denial rate, and an average accounts receivable cycle of 58 days. Compounding the issue, 8% of net patient revenue was written off annually as uncollectible bad debt, while a ±18% forecast variance undermined strategic planning.
Operational strain was further exacerbated by manual workflows, with 60% of staff time consumed by rework, follow-ups, and exception handling. These inefficiencies diverted critical resources away from high-impact initiatives such as clinical expansion and research acceleration.
The Challenge: A $40 Million Leak
Despite its success, the medical center faced a silent crisis of $40 million in annual revenue leakage.
Fragmented Systems
Multiple, non-integrated EHR systems created data silos, hindering a unified view of revenue.
High Denial Rate
A 14% claims denial rate and 58-day accounts receivable cycle caused significant financial drain.
Manual Rework
60% of staff time was consumed by manual rework, diverting resources from clinical initiatives.
The Strategic Imperative: From Plugging Leaks to Fueling Growth
Leadership knew that sustainable growth was impossible without addressing the foundational issues in their revenue cycle. To reclaim financial control and position the organization for long-term success, the medical center established four key imperatives:
- Reduce Denials: Drastically cut claims denials and billing errors to stop the financial drain.
- Unify Data: Gain enterprise-wide visibility and control over revenue operations.
- Improve Forecast Accuracy: Enable confident, data-backed strategic decisions.
- Accelerate Collections: Reduce A/R days to free up cash flow and reinvest in high-impact clinical programs.
Strategic Imperatives
To reclaim financial control, the medical center focused on four key imperatives.
1
Reduce Denials
Drastically cut claims denials and billing errors
2
Unify Data
Gain enterprise-wide visibility and control
3
Improve Forecast Accuracy
Data-backed strategic decisions
4
Accelerate Collections
Reduce A/R days to free up cash flow
The Solution: OTLEN’s AI-Powered RevOps Platform
To address these complex challenges, the medical center partnered with OTLEN to deploy its AI-powered Revenue Operations (RevOps) platform. The implementation was strategically phased over six months, beginning with a pilot in the most complex and high-impact billing environment—the oncology department—before expanding to a full network-wide rollout.
At the heart of the solution were three transformative components:
- Unified Data Layer: Seamlessly integrated the disparate EHR systems into a single, coherent infrastructure, providing a centralized source of truth for financial and clinical data.
- AI Claims Optimization Engine: Automatically scrubbed every claim for coding and compliance errors before submission using advanced natural language processing (NLP), dramatically reducing the likelihood of denials.
- Predictive Denial Management: A machine learning-driven module that flagged high-risk claims in real time, enabling teams to intervene proactively before submission.
OTLEN’s AI-Powered RevOps Solution
OTLEN deployed in phases, starting with oncology, to address critical pain points.
Unified Data Layer
Integrated disparate EHR systems into a single, coherent infrastructure for enterprise-wide transparency.
AI Claims Optimization Engine
Automatically scrubbed claims for errors using NLP, reducing denials and improving first-pass yield.
Predictive Denial Management
Machine learning flagged high-risk claims in real time, enabling proactive intervention.
The Transformation: Measurable Results and Strategic Impact
Within just 12 months, the organization saw measurable improvements across every major performance indicator. The deployment of OTLEN’s platform didn’t just improve metrics; it reshaped the medical center’s financial posture, operational culture, and strategic capacity.
Transformative Results: Financial Uplift
The impact was immediate and profound. In the first year alone, the medical center recovered $12.8 million in net revenue, representing a 32% increase in net revenue capture, and freed up over $50 million in cash flow, allowing for reinvestment into strategic initiatives.
$12.8M
Net Revenue Recovered
32% increase in net revenue capture
7x
ROI in Year One
significant return on investment
$50M+
Cash Flow Freed Up
reinvestment into strategic initiatives
Operational Efficiency Gains
Operationally, the transformation was equally dramatic. The claims denial rate plummeted by 64%, from 14% to a best-in-class 5%. Days in accounts receivable dropped by 40%, from 58 to 35 days. Manual rework time was cut by 75%, and forecast accuracy improved by 22%, with variance reduced from ±18% to ±4%.
64%
Denial Rate Reduction
from 14% to a best-in-class 5%
40%
A/R Days Dropped
from 58 to 35 days, improving liquidity
75%
Manual Rework Cut
staff focused on proactive revenue protection
22%
Forecast Accuracy Improved
variance reduced from ±18% to ±4%
A Cultural and Strategic Impact
Beyond the numbers, the most meaningful change was a cultural shift towards intelligent operations. The revenue cycle, once viewed as a back-office burden, became a strategic asset. Staff who once spent their days fixing billing errors were now preventing them.
— Chief Financial Officer, East Coast Academic Medical CenterOTLEN didn’t just sell us software; they solved our core business problem. For the first time, we have a unified view of our entire revenue cycle. The predictive analytics have been a game-changer for our financial strategy.
Key Takeaways for Healthcare Leaders
This journey offers powerful lessons for healthcare leaders navigating digital transformation:
-
Clean Data is Foundational: Integrated data is essential for AI tools to deliver meaningful results.
-
Strategic Pilot Use Case: Selecting a high-impact area like revenue leakage accelerates ROI and builds internal momentum.
-
Unified Systems: Enhance visibility, accuracy, and decision-making across departments.
-
Predictive Analytics: Shift operations from reactive problem-solving to a proactive financial strategy.
Clean Data is Foundational
Integrated data is essential for AI tools to deliver meaningful results.
Unified Systems
Enhance visibility, accuracy, and decision-making.
Strategic Pilot Use Case
Selecting revenue leakage accelerates ROI and builds internal momentum.
Predictive Analytics
Shifts operations from reactive problem-solving to proactive financial strategy.
Future Roadmap: Sustaining Innovation
The partnership between OTLEN and the medical center continues with plans to expand AI into new areas:
- Pharmacy & Lab Billing: Expansion to unlock new revenue streams.
- Patient Payment Prediction: A real-time module for personalized financial engagement.
- Clinical System Integration: Predictive insights linking financial performance with clinical outcomes.
This journey proves that strategic vision and the right technology can turn a crisis into a competitive advantage.
Pharmacy & Lab Billing
Expansion to unlock new revenue streams.
Patient Payment Prediction
Real-time module for personalized financial engagement.
Clinical System Integration
Predictive insights linking financial performance with outcomes.
This journey proves that strategic vision and the right technology can turn crisis into competitive advantage.