Increase working capital. AleraCare knows all too well that distributors want to be paid as fast as possible and often offer prompt-pay discounts. AleraCare was relieved to know that the Remitra® Managed AP solution guaranteed on-time payments to their distributors, and also offered the option to pay as quickly as a few days, in 10 or in 20 days, potentially qualifying AleraCare for payment discounts that often yield significant cash returns.
“Premier’s Remitra® Managed Accounts Payable solution is paying our wholesaler on time, allowing us to match cash flow which has been a huge contributor to our working capital,” said Tom Pascoe, Chief Financial Officer, AleraCare.
Lengthen payables timelines to 30 days or more. AleraCare took advantage of extended payment terms to increase working capital, obtain better cash flow management and fuel organizational growth. Having cash on hand rather than tapping a high-interest line of credit helped AleraCare hire additional salespeople to expand their physician reach and keep operations running smoothly.
“In the past, we would get a medication order, get it approved with insurance and pay upwards of $5,000 for the medication, but the terms were 30 days,” said Pascoe. “With Remitra® Managed AP, we were able to match our payment terms with our collection terms, which means we don’t have to buy three expensive medications before we can collect on the first medication purchase.”
Expand patient care. AleraCare leveraged their increased working capital to add oncology infusions to their clinical offerings, increasing patient access to care.
Optimizing Cash Flow to Increase Working Capital, Fuel Growth
Automating the accounts payable process can help alleviate the challenges that AICs face and provide economic value. By optimizing cash flow, AleraCare was able to ensure resources were available for patients without sacrificing growth opportunities.
The team implemented the Remitra® Managed AP solution in one of its four operating systems in just under six weeks. This quick implementation helped AleraCare realize savings, launch growth initiatives and establish new brick and mortar AIC locations sooner than expected.
These efforts are vital for AleraCare and other healthcare organizations looking to gain better visibility and increased efficiency across payment terms and overall finances.
Premier’s Remitra® empowers healthcare organizations to streamline and automate processes to reduce human error, cut costs, generate revenue and refocus resources on more value-added, strategic opportunities. Automating paper-based processes is a critical step for healthcare organizations seeking to optimize cash flow, working capital and increase efficiency.
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