Finding the Revenue That Was Already There

Situation

Revenue was growing on the top line, but operating margin wasn’t moving with it. Collections were lagging, and the gap between what the business should have been collecting and what was actually landing was growing — but no one could quantify it cleanly. Leadership suspected revenue leakage in multiple places — pricing accuracy across operators, contractual adjustments being absorbed without scrutiny, and service-mix decisions that left margin on the table — but had no way to size any of it.

Approach

We built a leakage diagnostic across the revenue cycle: pulling raw transaction-level data from the source systems, joining it against contractual terms, and reconciling captured revenue against what the contract terms and service mix should have produced. The output was a quantified gap analysis broken into specific drivers: pricing accuracy across operators, contractual adjustments, service-mix utilization patterns, payment recovery on rejected transactions, and per-engagement revenue capture. We also did parallel work on the expense side, building a margin matrix across the general ledger to show where costs were concentrated and which categories were drifting. Once the drivers were sized, leadership could prioritize: fix the largest gap first, with a clear estimate of what fixing it was worth, rather than trying to fix everything at once.