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…
Ambulatory infusion centers opens in a new tab (AICs) are a critical component of the continuum of care (CoC), providing patients with an attractive alternative to an in-hospital setting for receiving intravenous treatments for cancer, autoimmune disorders and other chronic diseases.
Via the AIC model, care is generally managed and performed by skilled nurses and clinical pharmacists at an outpatient site pursuant to physician orders. Proving to yield both substantial savings and positive outcomes opens in a new tab, the delivery model can be beneficial not only to patients and their caregivers in terms of comfort and convenience, but also to commercial and government payers in terms of cost effectiveness.
The benefits of AICs are real. However, to realize them and bring these much-needed therapies to their patients, AICs may need to overcome a major hurdle – financing. Medications used in infusion therapy are expensive and it may take providers several weeks to several months to be reimbursed for their cost, depending on the patient’s private health plan, Medicare or Medicaid coverage.
The slow reimbursement process can put AICs in a financial bind, making it difficult for them to acquire these costly drugs and provide the continuity of care patients require. Oftentimes AICs work with multiple pharmaceutical distribution groups and their ability to obtain credit with these groups can be key to having the medications on hand when their patients need them, as is the opportunity to extend payment terms as far out as possible.
With Remitra® Managed Accounts Payable solutions, Premier is helping to take the financial burden off AICs in addition to increasing procure-to-pay efficiencies and savings by automating accounts payable and invoicing, enabling them to focus on what matters most – quality patient care.
Automated, seamless and designed specifically for healthcare, Remitra® Managed Accounts Payable solutions can help alleviate the financial strain AICs are under and provide economic value in five ways.
AICs no longer have to rely on their distributors, banks or other lending organizations for a costly line of credit as they are waiting to receive reimbursement from payers to cover their costs. Remitra® extends the credit AICs need, paying distributors on their behalf so they can maintain access to critical medications and supplies.
AICs may also be able to take advantage of wholesale group purchasing organization (GPO) agreements and purchasing models designed to save them money; agreements and models that may not have been available to them without a higher credit amount afforded by Remitra® Managed Accounts Payable solutions.
For example, Remitra® is working with an AIC that needed $5 million a month to take advantage of a wholesale arrangement offered through Premier’s GPO that would ultimately save the AIC money. Without Remitra®, the credit limit of spend the AIC was able to obtain was only $500,000, which would have put the wholesale arrangement and resulting savings out of reach.
Traditionally, distributors want to be paid as fast as possible and they may offer providers prompt-pay discounts for doing so. With Remitra® Managed Accounts Payables solutions, distributors are not only guaranteed on-time payment, but they can also be paid as quickly as 10 or 20 days, potentially qualifying AICs for payment discounts that may provide them significant cash return.
When distributors aren’t paid on time, providers are put on credit hold, which has a direct impact on their ability to provide patient care opens in a new tab. Remitra® Managed Accounts Payable solutions helps to eliminate the problem of late payments, keeping the flow of critical medications and supplies on schedule so AICs’ supply chains can remain robust and care delivery isn’t negatively impacted.
Through Remitra®, AICs can benefit from extended payment terms, which frees up working capital that can be applied to other areas of the business. Having cash on hand rather than tapping a high-interest line of credit can go a long way in helping an AIC weather today’s business climate exacerbated by high inflation, labor costs and supply chain issues, and keep operations running smoothly.
AICs are a win for patients, a win for healthcare providers and a win for distributors, translating to improved patient care, increased access to treatment and streamlined operations.
With the addition of Remitra® Accounts Payable solutions to Premier’s CoC services portfolio opens in a new tab – powered by technology offerings, GPO solutions, advocacy efforts and more – we’re working to enable these wins for the long term and contribute to a stronger, more cohesive care continuum for all.
Discover all that Remitra can do for your healthcare organization: Request a Demo opens in a new tab.