IBM just published a terrific case study about the use of analytics in New York State. Predictive modeling helped New York reduce questionable tax refunds by $1.2B and increase revenue by $100M. Other states are following suit.
In the US and around the world, government leaders are learning that it is possible to run efficient programs while making sure that money is distributed properly. In fact, the return on investment for the tools, people and processes to improve program integrity of large programs is not just high, it can be crazy-high.
To help our clients address these needs, IBM is expanding its solutions from healthcare and tax fraud to unemployment insurance and other Health and Human Service programs. We are applying lessons learned from the war on terror and money laundering to create powerful new approaches to both identify and prevent fraud and error.
While analytics plays an important role in protecting program integrity, governments also increasingly rely on analytics to make a positive impact on the lives of their citizens and communities. We have worked with clients to set priorities, grow local economies, improve outcomes for at-risk youth, and match jobs with job seekers.
That is exciting stuff. I’ll shift gears from fraud and error to writing about those types of opportunities over the next several months.