Case Study
DIVERSIFIED E-PAYMENT STRATEGY SURPASSES CASH REBATE GOALS
With GHX we had a way to still capture the vendors we could not get through the SUA program into another e-payment method—ePay. And, the comfort level to know we were protecting our organization’s investment. If vendors left the SUA program after signing up, I knew that they would accept electronic payments if they were part of the GHX ePay network. This auxiliary method of payment gave me the confidence that I’d meet the numbers I was expecting."
“
Health System Director of Business Standardization
Situation
Paying suppliers electronically, rather than manually through paper checks, is an effective way for healthcare organizations to make payments in accordance with contract terms; thereby capturing rebates tied to early or on-time payments. Historically hospitals have used credit cards to pay their suppliers electronically, but many suppliers are no longer accepting credit card payments because of the substantial fees imposed by card companies.
With the goal to increase its e-payment volume and associated rebate dollars, the health system implemented a single use account (SUA) program through a banking partner, but this program alone proved inadequate to yield the forecasted rebate dollars.
Solution + Results
The health system engaged with GHX to help diversify its e-payment program through implementation of the GHX ePay solution, which leverages healthcare’s largest supplier payment network with pre-established discount terms. As suppliers departed from the SUA program, the health system used ePay to realign them with its e-payment goals.
Increase Rebate Dollars
By adding another e-payment option with access to the GHX payment platform network of suppliers, the health system realized a huge increase in cash rebates in the first year.
Greater visibility into the full procure-to-pay process through other solutions offered by GHX allows the supply chain and AP teams to identify and address errors sooner, avoid late payments and get more rebate opportunities.
Greater Visibility
Reduces the number of times the AP department must “touch” a payment, which improves process efficiency.
Process Efficiency
There has definitely been increased rebate potential since implementing ePay as part of our diversified e-payment portfolio. A diversified platform can increase rebate dollars. It comes down to protecting your investments and mitigating risk for your organization."
Health System Director of Business Standardization
“
DISCOVER INDUSTRY ADVOCATES
Click on map to see industry leaders with similar successes. Would you like to connect with one of your industry peers?
Jack Koczela
How an award-winning, non-profit healthcare system in the Northeast drives home more opportunities to reduce costs and add revenue
Froedtert Health doubled the number of electronic trading partners in six months
Increase in Trading Partners
Connect Now
Director of Systems & Analytics
"Now our data makes sense and we've lowered our overall maintenance"
Business Intelligence Analyst
San Francisco, CA
Supervisor, Supply Chain Systems
Los Angeles, CA
EDI Administrator
St. Louis, MO
Vice President Procure to Pay
Nashville, TN
Director, Materials Management
Columbus, OH
Corporate Vice President
Hackensack, NJ
Manager, Materials Management
Titusville, FL
3.
Solely depending on this program proved insufficient to capture revenue stream
2.
Initially, the health system implemented a single use account (SUA) program
Many suppliers are no longer accepting credit card payments due to fees
Jack Koczela
Business Intelligence Analyst
San Francisco, CA
Supervisor, Supply Chain Systems Los Angeles, CA
Corporate Vice President
Hackensack, NJ
Director, Materials Management Columbus, OH
EDI Administrator St. Louis, MO
Vice President Procure to
Pay Nashville, TN
Manager, Materials Management Titusville, FL
download full case study
download full case study
Jack Koczela
Director of Systems and Analytics for SupplyChain, Froedtert Health
Think of your e-payment strategy in terms of a retirement portfolio blend—you don’t want everything in one basket, you want diversification. Each time you don't look at e-payment alternatives it costs your organization money in the form of missed rebate opportunities."
Health System Director of Business Standardization
“
results
OUTCOME
A diversified e-payment strategy that provides visibility, control and more opportunities for cash rebates.
In 2018, the health system projected $450k in rebate dollars, and realized $507k, an additional $440k over 2017.
The success of the ePay program has moved the health system to explore additional areas to apply automation for greater efficiency and financial gains.
Foundation for Growth
1.
The health system needed a way to increase e-payment volume and associated rebate dollars
But suppliers dropped out of the program over time and rebate opportunities were missed
To meet rebate goals, more options for e-payment were needed
Needed more options for e-payment and rebate opportunities
Suppliers dropped out of the program over time. Missed rebate opportunities because of this.
Many suppliers are no longer accepting credit card payments due to fees
2017
$507k
$67k
2018
Many suppliers are no longer accepting credit card payments due to fees
Supplier
Provider
Foundation for Growth
1.
ePay
ePay