Automated Payment Amount Generation for Provider Acceptance
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Solution Overview
Problem
Current methods for determining payment acceptance in negotiations between providers and payors are inefficient and time-consuming, relying on individual negotiator skills and lacking a systematic approach to secure the lowest payment amount.
Innovation Solution
A system and method that utilize a transaction management computing apparatus to receive electronic payment estimates, determine the likelihood of payment acceptance based on provider-specific data, and complete payment transactions with a generated exact amount acceptable to the provider, reducing the need for multiple negotiations and improving payment certainty.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If individual negotiator skills are used to determine payment amount, then negotiation flexibility is maintained, but the process becomes time-consuming and inconsistent
Solution Approach 1:
The system enables automated negotiation where the computing device independently analyzes provider data, generates acceptable payment amounts, and executes transactions without human negotiator intervention, eliminating time loss while maintaining reliable acceptance through data-driven decisions
Solution Approach 2:
The patent replaces the mechanical process of human negotiation with an automated computing system that uses algorithms to analyze provider characteristics, service types, and payment timing data to determine optimal payment amounts, substituting human skill with systematic computational analysis
2Productivity
If multiple negotiation transmissions occur between payors and providers, then payment amount optimization is attempted, but the settlement process is delayed
Solution Approach 1:
The system performs preliminary analysis of provider data, service characteristics, and payment timing before the actual payment transaction, pre-determining the acceptable amount range to avoid multiple back-and-forth negotiations and accelerate settlement
Solution Approach 2:
The system incorporates feedback loops that analyze historical payment data, provider responses, and negotiation outcomes to continuously refine payment amount predictions, reducing information loss and improving settlement efficiency through learned patterns
3Reliability
If payment amount is reduced through negotiation, then payor cost is lowered, but payment acceptance uncertainty increases
Solution Approach 1:
The system changes multiple parameters simultaneously including provider financial characteristics, service type classifications, and payment timing factors to dynamically determine the optimal payment amount that maximizes acceptance certainty while minimizing cost, rather than simply reducing the amount
Data Source
AI summary
Embodiments of the application are directed toward a method comprising: receiving, by a transaction management computing apparatus, an electronic payment estimate via a secure communication channel for services rendered by a provider; receiving determining a likelihood of payment acceptance by generating, by the transaction management computing apparatus, an payment amount acceptable to the provider computing device based on data associated with the provider computing device, a type of service provided, or a number of days to make the payment; determining, by the transaction management computing apparatus, whether the generated exact amount is acceptable to the provider computing device; and completing, by the transaction management computing apparatus, a payment transaction with the generated exact amount when the generated exact amount is determined to be acceptable to the provider computing device.