By Tom O’Bannon, Senior Director, Enterprise Solutions, Supply Chain Strategies, Intalere
Healthcare organizations face a number of challenges associated with accounts payable (AP)…and it’s easy for CFOs to lose sleep at night. Despite the increasing digitization of workflow and systems, the accounts payable process in many healthcare organizations remains mired in paper copies and manual workflow. The result is often expensive and labor-intensive, leaving financial executives with a growing unease over the inefficiencies.
How can healthcare CFOs sleep a little better? One solution is to automate accounts payable — using a combination of hardware, software and business systems — reducing and eliminating any manual tasks that plague the AP process in most healthcare organizations.
By relieving the burden of manual data entry, matching and other routine and repetitive activities, automation helps your staff function in more productive and value-added activities.
Historically, companies have had challenges with credit card programs, including lack of automation, resulting in increased manual work and increased exceptions. There can also be potential for fraud because of lack of financial control or earned rebates not meeting expectations.
There are several best practices related to e-payment that companies should ensure are offered by any e-payment vendor they consider for their organization. They include:
- Technology to enable automation in process – Ensure vendor has technology that can fully automate the payment process.
- Single-use virtual card for each payment – For ease of reconciliation and enhanced control, the best practice is to issue a single unique virtual card number for each payment issued versus a “ghost card” for each vendor who will be paid by card.
- Rebate from dollar one – Ensure that the rebate earned is from the first dollar of payments processed and there are no minimum volumes for rebates.
- Maximum number of vendors contacted for enrollment – Many e-payment providers only reach out to the largest vendors to see if they accept cards as a form of payment. This dramatically reduces the potential rebate.
- Flexible payment delivery method – The e-payment provider allows payment to the vendor in a method the vendor prefers versus forcing the vendor to accept the card payment with the delivery method they prefer. This increases vendor willingness to accept card as a form of payment.
- E-payment provider has accounting and AP backgrounds.
Be sure to read our article featuring the five benefits of moving to an e-payments system and see how Intalere member Yakima Valley Memorial Hospital teamed with supplier CPS Payments to significantly expand rebate opportunities.
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