Healthcare Fraud Risk Analytics
Anomaly Detection & Provider Risk Profiling
The Problem
Healthcare fraud costs the US healthcare system over $100B annually. Our organization needed a scalable approach to identify suspicious billing patterns across 10,000+ claims and flag high-risk providers before payments were issued.
Approach
- ▸Built an end-to-end fraud detection pipeline analyzing claims across 8 provider specialties and 5 insurance types
- ▸Developed a composite fraud risk score using statistical anomaly detection (Z-scores, IQR methods) on billing amounts, claim frequency, and service patterns
- ▸Created provider risk profiles comparing individual billing patterns against specialty benchmarks
- ▸Performed chi-square and t-test analyses to validate statistically significant fraud indicators
Results
- ✓$500K+ in suspicious claims flagged for review
- ✓Identified 3 provider specialties with fraud rates 2x above baseline
- ✓Reduced false-positive rate by 35% through multi-factor scoring
- ✓Built executive dashboard enabling real-time fraud monitoring