Automated data collection, allocation automation, and detailed reporting

Project overview and objectives

When a $100B+ managed care organization acquired another company, the integration surfaced several operational challenges—most notably the use of two separate cost allocation platforms and an inconsistent cost framework. Leadership needed a solution quickly, but timing and cost constraints made a large-scale system implementation impractical. 

The organization instead pursued a flexible, lower-cost approach that could be implemented rapidly while still delivering improved visibility, automation, and control. The selected solution needed to: 

• Reduce total cost of ownership 
• Adapt quickly to changing business requirements 
• Be managed by the business with minimal IT dependency 
• Improve transparency into product costs, profitability, and reporting 
• Automate previously manual, time-intensive processes 
• Support low-code/no-code development for long-term scalability 

The result was a reusable, configurable expense allocation engine designed to meet immediate needs while remaining extensible for future growth. 

What we did

We partnered closely with Finance and IT to design and implement an automated allocation engine that standardized cost allocation across the organization while supporting highly customized allocation methodologies. 

Key elements of the solution included: 

• Automated data ingestion and collection: Built upstream workflows to populate, distribute, and consolidate multiple data collection templates, reducing manual effort and improving data consistency. 
• Rules-based expense allocation engine: Developed a centralized allocation framework capable of handling complex allocation logic using multiple drivers, cost pools, and targets—fully automated end to end. 
• Enhanced reporting and analytics: Designed interactive management dashboards that provide detailed reporting, end-to-end data lineage, variance analysis, and visibility into upstream data submissions. 
• Process automation and controls: Streamlined management fee calculations and automated journal entry creation to improve accuracy, auditability, and speed. 
• Business enablement: Delivered hands-on training and documentation to support ongoing maintenance, enhancements, and long-term business ownership of the solution. 

Impact

At its core, this project was about visibility, accuracy, and speed. By replacing fragmented tools and manual workflows with a standardized, automated allocation framework, the organization significantly improved both performance and transparency. 

The results included: 

• 6 hours saved per allocation run, reducing processing time from 8 hours to 2 hours 
• 70% reduction in platform implementation costs and 90% decrease in ongoing licensing costs compared to a larger-scale alternative 
• A flexible solution that adapts to business changes without requiring redesign or heavy IT involvement 
• Improved accuracy through automated calculations based on defined attributes such as cost pools, drivers, and allocation targets 

Most importantly, the solution established a scalable foundation for consistent cost allocation, reducing manual effort while increasing confidence in the results.