Day Sales Outstanding (DSO). It's on the minds of a lot of healthcare suppliers as of late. That's because the timeliness of your accounts receivables directly correlates to cash flow, which reflects the health of your business and ability to invest in more inventory, parts and people. Essentially, the number of days it takes to receive payments from customers can impact your ability to grow and invest in your business.
Adding complexity to the matter is that oftentimes healthcare providers would like to hang onto their cash as long as possible in order to improve their own cash position. Not to mention, the healthcare industry is navigating significant changes that can be felt in a number of ways. Many suppliers are feeling the pressure in cost containment, payment automation, credit card fees, provider demands and expectations, and the need for more efficient processes.
So, how can healthcare suppliers shorten DSO and keep their provider customers happy? Let’s first look at the unique payment needs for suppliers and providers.
There is really no denying that the payment needs of suppliers can be in contrast with those of healthcare providers. As with any vendor/buyer relationship, both parties must look out for their best interests, but it is undoubtedly more complicated in healthcare, and there is more at stake. That's why most payment solutions, even the newest and most innovative, aren't ideal for healthcare. Sure, they can automate and complete a payment transaction, but to truly nurture the relationship between healthcare suppliers and providers, you need a solution that honors both sides.
GHX understands the complexities of the healthcare system and was built upon bringing providers and suppliers together to support the best interests of the industry as a whole.
Read more on invoice and payment automation for suppliers and providers on The Hub.