Healthcare Virtual Payments Keep Providers in Their Comfort ZoneWith decreasing revenue driven by changes such as lower reimbursements rates, hospitals are looking at every possible way to lower costs. 

Streamline the Hospital Payment Process

03.27.14

Healthcare Virtual Payments Keep Providers in Their Comfort ZoneWith decreasing revenue driven by changes such as lower reimbursements rates, hospitals are looking at every possible way to lower costs. For most hospitals, their largest expense category, after labor, is the supply chain. With multiple IT initiatives higher on their priority lists, many organizations are still using a great deal of paper to pay suppliers. Processing paper invoices, obtaining approvals and mailing checks to a large number of vendors, often from different locations across a large healthcare system is expensive and inefficient.

As mergers continue to increase, healthcare CFOs and CIOs are faced with integrating multiple, disparate systems that are used to manage vendor payments. Forward thinking hospitals are looking at other business models, such as retail, to inform their decision making with regard to their supply chain management. One option that large provider organizations are exploring is an end-to-end solution called procure-to-pay. While these electronic platforms are common in many other industries, large hospitals have been somewhat slow to adopt these proven, cost effective solutions.

Procure-to-pay solutions offer an electronic connection between hospitals and their myriad of vendors and suppliers. It eliminates the costly and time consuming paper check. Comdata ConnectPay is a comprehensive accounts payable automation solution that enables large provider organizations to convert their financial systems and processes to an electronic payables platform. The technology addresses all types of payments, aggregating financial data from multiple locations onto a single source that ensures timely and secure payments to vendors.

Comdata’s ConnectPay is designed for large healthcare networks. The platform is not tied to a specific treasury bank, meaning hospitals can maintain their existing bank and treasury relationships, so no additional software is needed. A procure-to-pay solution can help major healthcare providers manage supplier and vendor relationships by consolidating their payables on a single platform and sending all their payments electronically. In addition, the accounts payable function can choose the most cost effective electronic method, including virtual and specialty cards, ACH and other types of transfers. As hospitals struggle to achieve savings without impacting quality of care, the payables function represents an attractive option for cost reduction through automation.

Learn more about Comdata’s procure-to-pay solution and how it can help your hospital reduce administrative costs.