As we have seen with most aspects of deduction management, there is no single “right” way to be organized to manage deductions. Some companies have separate groups to coordinate the research and follow up of compliance-related deductions, while other companies pass these deductions along to each responsible department for research and follow up. While many compliance groups are now reporting up through operations, quite a few still report to finance. The same is true of roles and responsibilities of the various groups in managing deductions. Some compliance groups are actively involved in the research and resolution of specific deductions, while others focus more on initial customer set up and prevention, leaving the actual follow up of deductions to others. Once again, the common thread across companies who are successful in managing deductions is the overall commitment of the company to learn from their mistakes and work together cross-functionally to understand the requirements of their key customers and prevent recurring deductions. Accountability, tracking and communication continue to be three of the key components of success.

This discussion of Organizational Structure, Roles & Responsibilities is divided into the following sections:

  1. Cash Application & Deduction Creation
  2. Compliance Groups / Deduction Research
  3. Invalid Claims
  4. Valid Claims
  5. How Long Deductions Age
  6. Budgeting for Compliance Deductions
    – Summary of Company Profiles


© 2021 Attain Consulting Group. All rights reserved. Website management by Asenka.