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How AP Automation Helps Healthcare Organizations Get Ahead

Published in: Supply & Demand Chain Executive

Ask any healthcare leader, “what keeps you up at night,” and you’re likely to hear some variation of “delivering the highest quality care at the lowest possible cost” as the answer. A recent survey underscores this where 83% of participating healthcare CFOs agreed that cost reduction was an increased strategic priority.

One area not to be overlooked by CFOs and others seeking significant savings opportunities is the antiquated accounts payable (AP) process across healthcare.

Unlike other industries – such as retail and manufacturing that have embraced modern, technology-driven approaches – management of purchasing and AP in healthcare still largely comprises manual, paper-based processes.

In fact, as many as 70% of all healthcare invoices are paper-based and nearly 85% of all healthcare purchasing is still done manually via paper checks, as evidenced from a Premier Inc. webinar. Across the healthcare industry, these transactions can add as much as $18 billion to $22 billion in unnecessary annual expenses, according to PINC AI data. On top of that, simple invoicing errors associated with paper transactions delay payments to suppliers by an average of 61 days.

So, why has healthcare lagged behind? Three main reasons.

Full Story

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