2. Enable visibility and analytics to unlock better cash flow management
Automation gives AP teams visibility to the details and status of each and every invoice and payment. Coupled with analytics, this helps healthcare AP teams closely analyze their payment mix, identify early payment discounts, and measure KPIs. It also enables them to strategically prioritize payments to specific vendors and manage cash flow. This ensures they always have adequate funds on hand to pay for staff salaries and critical supplies.

3. Tap vendor payment services to save time and increase vendor satisfaction

Responding to the influx of vendor inquiries is another key area where automation providers help AP teams. With growing payment volumes and processing delays stemming from supply chain disruptions, many AP teams are unable to handle the subsequent rise of inquiries from suppliers. In fact, 11% of healthcare AP teams spend over 20 hours per month just responding to vendor inquiries, which is higher than other verticals (7%). At the same time, only 56% of vendors are happy with the response time on their inquiries, leaving a lot of room for improvement.

Self-service portals are one way to alleviate these problems by enabling vendors to check on the status of their invoices and payments. In addition, AP automation vendors may also offer payments services with their platforms, such as fielding incoming payment inquiries from suppliers. These services enable vendors to get prompt answers to their questions without bogging down their customers’ AP teams.

4. Maximize ePayments to speed up payments and cut costs
35% of healthcare organizations reported an increase in their use of virtual cards. Meanwhile 47% decreased their use of checks. These trends demonstrate the industry’s movement towards electronic payments (ePayments), albeit more slowly than other verticals. ePayments slash processing costs and delays by providing efficiencies and more timely payments. In addition, they provide added security by protecting against fraud. These advantages have prompted over 70% of healthcare AP teams to plan to make more payments electronically (e.g., ACH, credit card, or virtual card) this year. Virtual cards can also earn valuable rebates for AP.

5. Leverage enrollment services to speed up ePayment adoption
There are several obstacles to ePayment adoption. The top AP team concern is that vendors won’t accept them; yet an overwhelming 82% of vendors surveyed in 2022 said they want to receive more ePayments in 2023. This makes sense given the many vendor benefits to accepting ePayments including faster payment, increased processing efficiency, easier remittance, cost savings, and stronger security.

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