Five Ways AP Automation Can Ease Burnout, Turnover in a Healthcare Organization’s Finance Department
Key takeaways: Employee burnout and turnover are real threats to a healthcare organization’s mission to…
Supplies. They can mean the difference between life and death in a hospital or health system. And while no healthcare organization or the suppliers they work with would ever knowingly jeopardize the delivery of quality patient care in any way, they may unknowingly be doing so with their supply chain accounting practices.
The fact is supply chain procure-to-pay (P2P) – requisition, ordering, receiving and paying for products and services and its associated accounts payable (AP) processes for healthcare organizations and accounts receivable (AR) processes for suppliers – plays a critical role in empowering physicians to have choice and access to products they utilize to deliver their care.
Without a modern, streamlined P2P process, essential supplies are at risk for not making it into the hands of doctors and nurses at the time they’re needed most. Marian Favors, Executive Director, Customer Support Operations at healthcare supplier KARL STORZ opens in a new tab knows the impact inefficiencies in supply chain AP and AR can have on clinicians and their patients.
“Price discrepancies between suppliers and healthcare providers directly affect patient care. If a provider’s purchase order doesn’t match the supplier’s invoice, it creates an exception, and the invoice is put aside. When providers don’t pay their invoices, their accounts payable age. At some point, their account will be put on a credit hold status, and they won’t be able to get the products they need to provide quality patient care. It’s a domino effect. The problem starts in the supply chain and makes its way to the patient, creating an even bigger problem,” says Favors.
Today, we estimate that up to 70 percent of healthcare invoices are managed through antiquated paper-based workflows and 5-15 percent of invoices contain match exception errors (according to PINC AI™ opens in a new tab data as of October 2021). Paper and manual processes are a burden on AP and AR departments, often leading to these errors. As Marian emphasizes above, errors waste time and add unnecessary cost and delays, which trickle down to the front lines of patient care.
Remitra – the automated P2P platform built for hospitals and health systems and the suppliers that serve them – is taking a leading role in helping address supply chain AP and AR problems, including price discrepancies and match exceptions, and the negative impact they can have on healthcare delivery.
By eliminating paper-based workflows and consolidating all steps in the P2P process into a cloud-based platform, Remitra helps to reduce contracting, ordering and invoicing errors that can cause ripples in the supply chain, creating costly price discrepancies and match exceptions that delay payment and delivery of supplies to the point of care.
According to Favors: “A perfect order is a touchless order, one that’s automated, processed without any human intervention and gets out quickly and accurately. I see all the benefits of automation in Remitra and know where it can drive our industry to. Automation creates more bandwidth on both the provider and supplier side, cutting down on match exceptions that have to be dealt with manually, so people can work on the things that really matter.”
Over the last two years, COVID-19 changed the way hospitals and health systems deliver care and the way they do business. At every level, healthcare organizations have been pushed out of their comfort zones to deliver the best possible care, both efficiently and cost effectively. Having the right supplies at the right time they’re needed should never be a worry in care delivery.
Through the digitization and automation of the P2P process, the Remitra platform is helping to ease the strain healthcare organizations and their suppliers have been dealing with – saving costs, improving cashflow and enabling administrative efficiencies that lead to better patient care and outcomes.