Case Study

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."

The Business Issue

The U.S. Department of Veterans Affairs (VA) Financial Services Center (FSC) needed solutions they could get into production faster in support of Veterans. They also needed a platform that would allow VA to continuously improve its systems once they were in place. Finally, FSC needed a solution that could easily be applied and reused across all of VA.

The Solution

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.

The Results

VA FSC implemented IPPS in only 10 months and reduced invoice processing costs by 33%. Saving VA tens of millions of dollars, payments to vendors are nearly 100% on time and accurate as a result of the digital transformation. With more than 1.2 million invoices being processed each year, VA FSC was able to improve payment accuracy and timeliness by 10% to 15%. This virtually eliminated late fees and overpayment.

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.

All text sourced directly from Governments Building for Change.

Related Resources

  • Watch as the U.S. Department of Veterans Affairs Financial Services center shows a demonstration of its Invoice Payment and Processing System (IPPS).

  • Learn how governments around the world are leading the way to build for change.

Pega Customer Service

Create a simple, consistent customer experience anywhere.
Learn more

Tags

  • Industry: Government
  • Challenge: Customer Service
  • Challenge: Legacy System Innovation