Recommendations for Improving Payment Integrity

The IBM Center for The Business of Government continues to study how new technologies can be harnessed by government to increase payment integrity and reduce waste, fraud, and abuse. We recently hosted a diverse group of stakeholders for an expert roundtable to discuss actionable, practical strategies for enhancing the integrity of government payments. The session built on earlier reports on the topic – Enhancing Government Payment Integrity: Leveraging AI and other Emerging Technologies and A Prepared Federal Government: Preventing Fraud and Improper Payments in Emergency Funding – and explored the intersection of data, technology, and customer experience in strengthening payment integrity.

This post is the first in a three-part series highlighting key insights from the roundtable, providing an overview of the discussion and outlining major themes and findings. The second post will focus on the critical role of using data proactively to identify potential issues before they occur – shifting from a reactive “pay and chase” approach to a preventative one. The final post will explore how improving customer experience can help accelerate the delivery of accurate benefits to the vast majority who depend on government services.

James Christian Blockwood, CEO of the National Academy of Public Administration opened the session by underscoring the need for innovative solutions and greater collaboration across government entities to ensure the accurate and timely delivery of public services. He also highlighted the vital role of data sharing and the significant legal and policy barriers that currently hinder progress.

One of the key recommendations emerging from the roundtable was the need to strengthen data sharing protocols. Participants emphasized that dismantling information silos across agencies is essential to improving payment integrity. A recurring challenge discussed was the limited ability to access critical data across agency boundaries. The group agreed that a more integrated, cross agency approach to data sharing would support more informed decision-making and help reduce improper payments.

The roundtable also highlighted the transformative potential of predictive analytics and artificial intelligence (AI) in detecting and preventing fraud. One proposal called for the creation of a centralized fraud detection hub to collaborate with agencies across government. This hub would harness advanced technologies to identify suspicious activity early, while also promoting the sharing of best practices and innovative tools – ensuring all agencies benefit from the latest advancements in fraud prevention.

Participants also stressed the need for a cultural shift within government agencies – one that prioritizes payment integrity and fosters a proactive, solutions-oriented mindset. Rather than reacting to fraud, waste or abuse after the fact, agencies should be empowered to anticipate and address risks before they escalate. Scenario-based planning was suggested to stimulate innovation and develop strategies to navigate organizational and operational barriers.

Overall, the roundtable offered valuable insights and actionable recommendations for government leaders. By embracing proactive strategies, leveraging technology, and promoting cross-agency collaboration, the government can enhance the accuracy and efficiency of its payment systems. These efforts not only reduce improper payments but also help build public trust in government services.

In our upcoming posts, we’ll share key takeaways from the two breakout sessions: the Complexity and Variability of Data and Technology Tools and Customer Experience.