Over the last several years many health care systems have been working diligently to upgrade from their legacy accounts payable systems to be more efficient. Fast forward to today, and many new accounts payable systems are in place and primed for health care systems seeking to revamp their payment processes to suppliers. A critical component to improving the payment processes is to ensure the entire AP department is engaged, along with the finance team, and works together toward common strategizes to remain competitive and not to create internal chaos.
Improved accounts payable processes mean ‘payment automation.’ Payment automation means having the ability to pay suppliers electronically, faster and more secure all while saving time and generating revenue for your health care system.
Here are eight (8) reasons outlined below why your health care system should focus on payment automation.
1. Cutting checks are ten times more costly to health care systems than making electronic payments
2. The cost of cutting a paper check can range from $5.91 to $30 or more
3. Health care systems that embrace electronic payments (for example, credit card, ACH, and such) make it easier and quicker for their clients to pay them on time, leading to higher accuracy in cash forecasting
4. Check fraud has been on the rise since 2015 and “fraud control” is one of the top benefits of sending or receiving electronic payments
5. Wire transfers are also vulnerable to fraud and is an expensive form of payment for the health care system and the recipient
6. Both health care systems and suppliers will benefit from sending and receiving electronic payments as opposed to check which will provide a “working capital improvement”
7. Optimizing supplier payments is essential to ensure winning B2B customer relations across health care systems
8. No matter whom you speak with one adage is true: the future is electronic, not paper!
Many health care systems feel that their treasury bank can provide them with an accounts payable automation solution. Even though this is true, what mega banks won’t tell their client is that they will be left to manage and grow their ePayables program all by themselves.
If your health care system is seeking ways to automate and improve payments to your supply chain, then HealthSpire recommends implementing an ePayables solution. ePayables is a commercial virtual credit card that allows approved payments to be made by the health care system to your suppliers electronically and securely. HealthSpire knows health care, and we know how to make your accounts payable processes streamlined. Learn more about our ePayables solution and program here.