Case Study: Large Hospital System reduces bad debt risk with CognitiveScale AI-powered Debt Risk Advisor

Large Hospital System Company - Customer Case Study

CognitiveScale worked with a large hospital system that needed to better manage tens of millions of dollars in unpaid patient accounts each year. Because accounts can become “bad debt” 120 days after the initial statement, the hospital wanted a way to identify high-risk accounts earlier so staff could intervene before balances were sent to collections.

CognitiveScale implemented its Debt Risk Advisor, an AI-powered machine learning solution that analyzes millions of patient account records from the hospital’s EHR and uses historical, diagnosis, procedure, and aging data to predict bad debt risk. The solution helped the hospital prioritize at-risk accounts and recommend interventions such as payment plans, discounts, reminders, and financial education, with reported results including correctly predicting 92% of potential high-value bad debt accounts at more than 80% accuracy and enabling multi-million-dollar annual savings.