Accelerating Cash Flow with AI-Driven Revenue Cycle Optimization

Overview

A private equity firm asked Valerian to help one of their healthcare portfolio companies modernize its revenue cycle operations. The company was losing efficiency in claims processing, billing, and payment reconciliation — resulting in delayed cash flow and high labor costs.

‍

The sponsor wanted an AI-driven solution that could:

• Reduce Days Sales Outstanding (DSO).
• Eliminate manual errors.
• Improve EBITDA by unlocking faster, cleaner revenue recognition.

‍

Challenges

• High claim denial rates due to manual data entry errors.
• Long lag between service delivery and cash collection.
• Legacy billing systems with limited automation capabilities.
• Heavy reliance on FTEs for repetitive back-office processes.

‍

Solution

Valerian deployed an AI-augmented revenue cycle optimization engine:

‍

• Automated Document Processing – AI extracted billing codes and patient info directly from unstructured EHR notes and PDFs.
• AI-Enhanced Claim Validation – Pre-submission checks caught missing or inconsistent data, reducing denials.
• Payment Reconciliation Automation – Automated matching of remittances against open invoices, cutting manual workload.
• Cloud Integration – Plugged into the company’s existing EHR and accounting systems with minimal disruption.

‍

‍Results

The new system accelerated cash flow, reduced costs, and strengthened compliance, leading to a measurable lift in EBITDA.

For the PE sponsor, this proved the value of AI at the portfolio level: a repeatable, scalable solution that could be deployed across other healthcare companies to improve working capital and financial performance.