U.S. Department of Veterans Affairs: VA FSC Saves Millions of Taxpayer Dollars
Our digital transformation needed to be able to handle the volume and complexity of our operations. With IPPS, we have been able to improve payment accuracy to nearly 100% and reduce invoice processing costs by 33% ― savings that can be used toward Veteran care.
- 1.2 million invoices
- $14 billion payments annually
The Business Issue
The U.S. Department of Veterans Affairs (VA) Financial Services Center (FSC) needed a technology platform that would allow for continuous improvement and support ever changing policies. The FSC chose Pega because it needed solutions that were both highly reusable as well as quick to develop.
Unifying all payment processing under IPPS, the VA was able to replace legacy applications and improve the system’s efficiency and flexibility. Previously, multiple siloed systems were stitched together, making communication among systems slow and expensive to maintain. IPPS introduced automation, and sped the payment process by receiving invoices from all available formats, performing advanced business rule processing, automatically routing invoices for approval, and generating the appropriate payment transactions.
In addition to IPPS, VA FSC enlisted Pega for the Eligibility and Enrollment (EE) and Referral and Authorization System (RAS). These systems are used in support for the Choice Act, which affords Veterans more choices for receiving medical care, including services outside of the VA medical network. VA uses EE and RAS for medical claims processing and ensuring outside providers are paid for Veteran care.
As a result of implementing IPPS, VA FSC reduced its invoice processing costs by 33%.
Improving taxpayer visibility, IPPS provides VA with more accurate reporting and easier government compliance. Not only does IPPS ensure improper payments are avoided, but it also helps VA to comply with the Improper Payments Elimination and Recovery Improvement Act, allowing greater transparency.
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