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CASE STUDY | HEALTHCARE

Sagility Cuts $6M in Annual Late Payment Costs with ABBYY Process AI

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Partner Overview

Sagility

Name: Sagility

Headquarters: Westminster, Colorado, USA

Web: sagilityhealth.com

Sagility, a global healthcare solution and services provider, helped a U.S. health insurance client tackle one of its biggest pain points: late payment interest penalties. By implementing ABBYY process intelligence, Sagility uncovered hidden bottlenecks in claims workflows to deliver $6M in savings in the first year.

Without a tool like ABBYY, it’s impossible to even find out where the bottlenecks are, what the roadblocks are, and where we should actually start working to fix them.

Reetha Menon, Vice President of Business Transformation, Sagility

Challenge

For U.S. health insurers, medical claims must be reimbursed within 60 days of submission. Each day beyond that deadline triggers compounding penalties—and for one of Sagility’s major insurer clients, those delays were costing more than $50 million annually.

The source of the delays wasn’t obvious. On paper, the insurer’s processes looked sound, but in practice, limited visibility masked inefficiencies. Each claim had multiple history and footprint, which was highly complex, and a multi-departmental workflow spanning prepay, post pay, and more. Along the way, teams had to manage data standards and compliance.

With so many handoffs, traditional reporting simply couldn’t reveal where delays occurred or why. To get insight into the insurer’s true processes, Sagility turned to a process mining tool from ABBYY.

What impressed us most was the speed. With the inbuilt tool features, data loading and visualization only took minutes. ABBYY’s Process AI tools gave us clarity and control we’d never had before.

Reetha Menon, Vice President of Business Transformation, Sagility

Solution

With ABBYY Process AI, Sagility quickly analyzed extensive event logs—including timestamps and handoffs—to map the insurer’s true claims workflow. The resulting findings revealed hidden bottlenecks, redundant steps, and rework loops that stalled claims, sometimes for more than 10 days past the regulatory window.

Sagility and its client saw exactly where late payment interest was accumulating, what opportunities could reduce adjudication costs, and how cycle times could be shortened. These insights were delivered through dashboards that gave leaders visibility and control over claims management.

The team was able to zero in on 10 to 15 critical steps and work with client teams to remove roadblocks. Ultimately, ABBYY process intelligence allowed the health insurer to optimize the claims lifecycle and resolution times, even while reducing administrative costs. In the first year alone, these improvements helped the client cut $6M in late payment penalties.

Value

  • $6M saved in first-year late payment penalties
  • Streamlined claims management cycle
  • Reduced administrative costs