Recommendations for Improving Payment Integrity

The IBM Center for the Business of Government continues to work on the impact that new technologies and evolving business and program priorities can be harnessed to increase payment integrity and reduce waste, fraud, and abuse.  We recently hosted a roundtable with experts on this topic, which brought together a diverse group of experts and stakeholders to discuss actionable, practical strategies for enhancing the integrity of government payments.  The session built on earlier related reports, including Enhancing Government Payment Integrity:  Leveraging AI and other Emerging Technologies and A Prepared Federal Government:  Preventing Fraud and Improper Payments in Emergency Funding, and focused on the intersection of data, technology, and customer experience in the realm of payment integrity.

This is the first of a three-part series with highlights from the Roundtable.   This post will provide an overview and present major themes and findings.  Subsequent posts will first address the importance of leveraging data appropriately to better identify potential problems in advance, rather than to “pay and chase” after improper payments; and then the opportunity to improve customer experience and accelerate the delivery of accurate benefits to the large majority of people who rely on government services.

James Christian Blockwood, CEO of the National Academy of Public Administration, opened the session by emphasizing the need for innovative solutions and collaboration among government entities to ensure the delivery of accurate and timely services to the public. He also touched on the importance of data sharing and the challenges posed by existing legal and policy barriers.

A key recommendation from the roundtable involved the enhancement of data sharing protocols. Participants agreed that breaking down information silos between agencies is crucial for improving payment integrity.  Challenges were identified as to the inability to access necessary information across agency boundaries. The discussion pointed out that a more integrated approach to data sharing would enable better decision-making and reduce the incidence of improper payments.

Other key points from the roundtable discussion included the:

• Ability of predictive analytics and artificial intelligence in detecting and preventing fraud. Establishing a fraud detection hub to work with various agencies was proposed as a means to leverage advanced technologies for identifying suspicious activities early. This hub could facilitate the sharing of best practices and innovative tools, ensuring that all agencies benefit from the latest advancements in fraud prevention.
• Need for a cultural shift within government agencies. Participants stressed the importance of fostering a mindset that prioritizes payment integrity and encourages creative solutions to get ahead of potential threats, rather than responses to payment fraud, waste or abuse after the fact. The use of scenario-based planning was suggested to drive innovation and develop strategies to overcome existing barriers.

Overall, the roundtable provided valuable insights and actionable recommendations for government executives. By focusing on proactive measures, leveraging advanced technologies, and fostering inter-agency collaboration, the government can enhance the accuracy and efficiency of its payment systems. This will not only reduce the incidence of improper payments, but also build greater trust between the public and its government.

In our upcoming blogs, we will discuss the results of our two breakout group sessions on the “Complexity and Variability of Data” and “Technology Tools and Customer Experience.”