Discover how process optimisation and tighter receivables management helped a healthcare services provider significantly improve cash flow and reduce working capital requirements.
Problem Statement:
The average period for receiving payments from insurance companies was 45 days, increasing investment in working capital requirements leading to higher external financing and ultimately reducing profitability.
Solution Offered: Implemented a process to:
- Filing claims daily rather than weekly,
- Reconciliation mechanism of service delivered with that payment receipt.
Result / Impact:
- A/R days reduced from 45 days to 12 days improving liquidity
- Systematic reduction in debt.
