The primary role of electronic payments (ePayables) is to improve the efficiency of the payables process. However, if the management of ePayables is a time consuming task for your AP clerks, it begs the question—are ePayables more or less efficient than paper checks? The answer is yes, if you can leverage a payment solution provider.
There are many forms of ePayables (e.g. ACH, Ghost-Card, Virtual-Card, Dynamic Discounting…) and multiple banks and payment solution providers that provide access to those electronic payment methods. Moreover, it is vital for hospitals to utilize different payment methods, because not all suppliers want to be paid in the same way. By providing multiple payment methods, hospitals increase the number of suppliers paid electronically. Unfortunately, a consequence of providing suppliers multiple payment methods is that AP will be burdened with multiple payment tasks. To avoid burdening AP, it is critical to utilize a payment solution provider to facilitate payment management.
By utilizing payment solution providers, hospitals are able to take advantage of the increased ePayables volume created by multiple electronic payment methods—while simultaneously unburdening their AP staff. Such providers enable organizations to automate the transmission of a single invoice file to cover all payment types. Also, the payment solution provider takes responsibility for all payment management, including:
- Rebate revenue generated from payments
- Payment funding
- Supplier enrollment
- Managing when suppliers are paid
- How suppliers want to be paid
- The type and format of remittance information suppliers desire
- Payment tracking for both the hospital and its suppliers