According to a study conducted by the American Express, in 2011 most of the payment process in the healthcare industry was done via paper checks. Even though AP automation has been implemented in every business, the healthcare segment is still lagging behind in this adoption race. In another report, the American Express shared the spending tendencies of 15 health systems. It was found that $1.66 billion was spent and there were 505,565 total invoices.
Unfortunately, most of these account payment processes have been done manually because the healthcare industry has stayed away from digitization of workflow and systems. These pose a big threat because of the costly mistakes and people-intensive process.
Here is how the healthcare industry can grow with the integration of AP automation.
- The more you save, the better it is for your organization, no matter which sector you are dealing with. The installation of automated AP can help to streamline the entire invoice delivery and document management structure. You can optimize the workflow, reduce errors and nullify the risks of making double payments, seize more discount and increase productivity. Healthcare industry can save an average of $500,000 per year, only if 60 percent of manual invoice processing is switched to electronic payments.
- Automation of documentation is one of the important advantages that the health system can avail from this software. With so many invoices flowing in every day, it is very hard to balance everything, especially when human errors are part of the manual process. The delay in clearing payments even affects relationships with the vendors. Furthermore, the labor intensive process of collecting documentation from multiple locations is a big challenge. Hence, AP automation is an intelligent solution to such issues. It captures invoice images and extracts important data while calculating the tax as well. The manual process of getting approval is eliminated because everything is now automated.
Ninety one percent of health system invoices are still not automated. The healthcare industry should pay heed to this digitization wind. Adoption of AP automation not only makes it efficient, but also reduces the risks of missing important financial discounts, defaulting with creditors and most importantly, enhances the reputation of the organization. Feeling inspired? Contact us today and we will help your organization get started with AP automation.