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Thursday, December 14, 2017

It’s Time to Modernize the Healthcare Payment System

posted by: Peter Nelson, Vice President, Product Management, GHX

As we head into the new year, it’s an appropriate time to say, “out with the old and in with the new.” That’s certainly true of the healthcare industry. It’s high time for us to evaluate “old ways” of thinking for supply chain payment and leverage technology that establishes a common, standards-based payment platform that reduces waste and provides maximum efficiencies for both healthcare providers and suppliers.

In my most recent article on HealthDataManagement.com, I share my thoughts on the current state of the healthcare industry’s highly manual and fragmented payment processes. While there are different reasons for these unwieldy payment processes, the end result fails to deliver on the industry’s need to strip waste and inefficiencies out of the system to ensure lower costs. The answer to the payments issue, as well to so much else in the supply chain universe, is automation.

With epayables, suppliers benefit from on-time payments and can redirect resources to growing their businesses. What we have seen through our epayables work with healthcare providers is that organizations that pay through an e-payment solution can lower costs, increase favored partner discounts, and other incentives that then increase buying power.

The healthcare industry can’t advance as quickly as needed if it continues to work in silos. When it comes to payables, that means embracing the technology that delivers on the promise to eliminate waste and lower overall costs. In doing so, epayables will go a long way to improving the relationships between all trading partners.

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