Accounts Payable Automation in Healthcare: Simplifying Payroll Processes

What is healthcare accounts-payable automation? It comprises a sophisticated set of measures that facilitate the processing of over 90% of invoices without the need for human intervention. A number of companies have reported that AP automation in healthcare has significantly improved their compliance, thanks to the reduction in human error. In this article, we’ll explain the basics of healthcare accounts-payable automation, including the implementation process, use cases, and outcomes.

To set the stage for comprehending AP automation in healthcare, it’s imperative to first acquaint ourselves with the conventional Accounts Payable (AP) workflow. In the healthcare sector, this traditional process adheres to a carefully structured step-by-step manual procedure:

1. Invoice Generation: Healthcare providers receive supplier invoices for services, equipment, or supplies.
2. Supplier Submission: Suppliers send these invoices electronically or physically to the healthcare organization.
3. Invoice Reception and Review: Upon receipt, the invoices are reviewed by the AP team, who then prints physical copies for approval.
4. Manual Data Entry: The invoice details, including vendor information, amounts, and payment terms, are manually entered into the financial system.
5. Data Verification: The invoice data is reviewed by an approver within the healthcare organization for accuracy and relevance to healthcare operations.
6. Approval or Adjustment: The approver decides whether to approve, reject, or request adjustments to the invoice. Rejected or disputed invoices are returned to the AP team for resolution.
7. Check Issuance: Approved invoices trigger the generation and printing of physical checks.
8. Mailing Payment: These checks are then mailed back to suppliers, completing the payment process.

While this manual process has been the traditional approach in healthcare, it is laden with inefficiencies, potential errors, and delays. The healthcare sector in particular, with its unique requirements and regulatory demands, can benefit from modernization of AP workflows through automation.

???? Interested in implementing AP automation for a healthcare company? TATEEDA | GLOBAL can be your IT partner in the creation or adoption of a system for healthcare accounts-payable automation.

Please feel free to contact our representatives for further information: https://tateeda.com/iwl