PITTSBURGH – The University of Pittsburgh Medical Center has deployed an electric billing system to automate billing and reduce costs.
OnDemand AP, developed by Louisville, Colo.-based GHX, is designed to automate and streamline accounts payable processes, reducing invoice processing costs and cycle time. The product is also designed to improve internal controls and cash flow management.
With this implementation, UPMC officials plan to process all billing transactions electronically.
"Like most IDNs, our vendor pool is huge, and we still had hundreds of suppliers who submitted paper invoices," said Michael DeLuca, director of supply chain systems and consulting services for UPMC. "Our strategy in these difficult economic times is to focus on strategic sourcing activities that drive value and savings to the organization. To do that, we are automating processes, including invoicing, as much as possible.”
According to UPMC officials, the organization was receiving about 60 percent of its invoices electronically before the implementation of OnDemand AP. With this deployment, UPMC now looks to shift its resources from billing to other supply chain activities.
A recent study conducted by Paystream Advisor, which provides independent research and automation assessment for financial automation technology, concluded that more than 70 percent of hospitals still receive more than 80 percent of their invoices as paper mail. With automation of billing processes from paper to electronic, hospitals report that cost can be reduced from an average of $14.78 to $2.51 per claim.
UPMC officials are also looking to reduce error rates in the billing process. By reducing the amount of manual intervention, they expects error rates to drop and see and increase in savings for both the organization and the patient. As a result of reduced manual intervention, turn-around on claims is expected to be faster, with less time between submission and reimbursement. This could reduce late-payment penalties and help providers take advantage of early-payment discounts.
