Case Study

Healing healthcare data: How a Medicaid MCO created golden member records to reduce claims denials by 75%

The short version

Challenge:

A $15B Medicaid MCO struggled with duplicate member records across multiple systems, facing millions in potential HIPAA fines, delayed prior authorizations, and inaccurate risk adjustment coding.

Solution:

DataCatalyst implemented an MDM platform, creating golden patient records by linking healthcare identifiers, with specialized workflows ensuring HIPAA compliance and regulatory validation.

Results:

The organization achieved a 75% projected reduction in claim denials, significantly faster prior authorizations, and projected annual savings of $25 million while establishing a foundation for future data initiatives.

The challenge: Compliance risks and care delays

A $15 billion Medicaid Managed Care Organization (MCO) was drowning in data chaos. As a healthcare payer administering benefits to thousands of members, they operated a complex ecosystem of over a dozen different systems – including EHR/EMR platforms, claims adjudication, member enrollment, and provider portals. With more than 40 stakeholders involved in various data processes, their information environment had become fragmented and increasingly unmanageable.

The need: A single, accurate view of each member

The MCO had reached a critical breaking point. Duplicate member records proliferated across their claims, eligibility, and care management systems, creating serious operational inefficiencies and compliance vulnerabilities. These inconsistencies weren’t just administrative headaches – they directly impacted patient care, with mismatched IDs causing delayed prior authorizations and worsening health outcomes.

The organization desperately needed a single, accurate view of each member across all systems to ensure proper care coordination, accurate billing, and regulatory compliance. Without this foundation, they faced tens of millions in potential HIPAA fines, CMS audit failures, and continued financial penalties from inaccurate risk adjustment coding (HCC).

The approach: High-impact value through Accelerate methodology

DataCatalyst deployed a lean team of data management experts who immediately began working with the MCO’s stakeholders to assess the full scope of their data challenges. Following our Accelerate methodology, we conducted a thorough analysis of their data landscape, mapping flows across their dozen-plus systems and identifying critical points where inconsistencies occurred.

Rather than proposing a massive, multi-year transformation, we focused on delivering high-impact value quickly. Our collaborative workshops with over 40 stakeholders across the organization helped build consensus on priorities and ensured the solution would align perfectly with business needs – not just technical requirements.

The solution: MDM platform creating golden patient records

Based on the diagnostic process, DataCatalyst implemented an MDM platform that created golden patient records by linking Medicaid IDs, provider NPIs, and ICD-10 codes. This centralized approach established a single source of truth for member information while accommodating the complex healthcare data environment.

Key components of the solution included:

  • Implementation of consent management workflows to ensure HIPAA-compliant data sharing with Accountable Care Organization partners
  • Specialized workflows for rules regarding prior authorization approvals (using ICD-10, CPT, and LOINC codes)
  • CMS audit validation rules to ensure ongoing compliance
  • Integration points with existing systems to maintain data consistency

The transformation: Shifting from siloed to centralized data management

Implementing this solution required significant but focused changes to the organization’s data management practices. The MCO shifted from siloed data management to a centralized approach with new processes and workflows.

Our change management expertise was essential during this transition, as stakeholders across the organization needed to adopt new practices for data entry, validation, and management.

Despite the complexity of integrating multiple healthcare data standards and ensuring compliance with both HIPAA and CMS requirements, our Accelerate methodology kept the implementation on track and delivered value in phases, rather than waiting for a “big bang” deployment.

The results: 75% fewer projected claim denials and $25M in projected annual savings

The transformation delivered substantial and measurable results with remarkable speed:

  • 75%+ projected reduction in claim denials resulting from data mismatches
  • Significantly faster prior authorization approvals, improving both operational efficiency and patient care
  • $25 million in projected annual savings
  • Projected elimination of potential HIPAA fines and CMS audit failures
  • Enhanced data quality supporting accurate risk adjustment coding

Overall, the new data management approach reduces regulatory compliance issues, improves operational efficiency, and enhances patient care through faster authorizations.

The future: Solid foundations for healthcare innovation and compliance

The MDM implementation fundamentally transformed how the MCO manages its member data, creating a foundation for ongoing innovation and improvement. With their new data management capabilities, the organization is now positioned to:

  • Better adapt to changing healthcare regulations
  • Implement more advanced analytics for population health management
  • Ensure consistent quality of care across their member base
  • Leverage their data assets for strategic initiatives while maintaining robust compliance

The MCO has established the data foundation necessary to thrive in an increasingly complex healthcare landscape.