Healthcare organizations’ accounting departments are under pressures to cut costs, reduce errors and optimize cash flow. However, manual accounting processes are holding them back. These processes stand in the way of more efficient workflows, while raising the risk of non-compliance and straining supplier relationships.
During a March Becker’s Hospital Review webinar sponsored by Premier, three healthcare leaders with extensive knowledge of accounting processes discussed how automation can improve outdated accounts receivable (AR) and accounts payable (AP) processes, save costs and enhance communication with suppliers. Panelists were:
- Holly McCord, vice president, accounts payable, controller’s office, Advocate Health (Charlotte, N.C.)
- Jaclene Rios-Simpson, director, customer relations, Applied Medical
- Larry Twito, vice president, business development, AP & AR automation, Premier
Three key insights were:
- Advocate faced inefficiencies that called for an invoice automation solution. Several years ago, Atrium Health (now Advocate Health) was in the midst of a rapid growth journey involving mergers, acquisitions and other partnerships. “Because we were growing by leaps and bounds, the accounting transactions continued to increase,” Ms. McCord recalled. “So, we started looking for a solution to manage those transactions better.”
Advocate’s accounting leadership wanted to reduce exceptions, duplications and AP recoveries on the one hand — while improving rebate generation, statement reconciliation and supplier experience on the other.
To gain the approval of the IT team, a potential automated solution had to integrate into the organization’s ERP system, be HIPAA compliant, and address data governance and cybersecurity. To convince the finance team, it also had to show demonstrable ROI over time. - Premier’s invoice automation solution met all of Advocate’s needs. The specific type of solution that Advocate was searching for was one that would help it address a critical need in its AR/AP cycle: handling supplier invoices. The conventional, manual workflow for that function is time consuming, error prone and riddled with inefficiencies that drain accounting resources.
Automation solutions accelerate this workflow, permitting invoices to be paid in an expedited manner. “These solutions are hugely beneficial but are a big undertaking for an organization,” Mr. Twito said.
Advocate was looking not just for a technology fix, but for a partner. “We wanted a holistic approach to what we were doing and a true business partner to take us through this automation journey,” Ms. McCord said, noting that they found that partner in Premier. - From a supplier perspective, switching to electronic invoicing has multiple benefits. The biggest benefit is the savings, in both material costs and staff time, from not having to print and send paper invoices. Other benefits include removing the risk of “lost in the mail” invoices, eliminating the need to custom-format invoices and reducing delays in payment. Yet another important benefit for both suppliers and clients is improved communication.
“We’re removing the necessity to send repetitive emails to customers, reminding them that we’re waiting for payment,” Ms. Rios-Simpson said. “By helping lessen communication to our customers, so they can get their more important tasks done, [automated invoice solutions] make everything more efficient overall for both the customer and ourselves.
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