Automating Healthcare Supplier Payments


Since the automation of healthcare records, many facilities have taken the automation to the back office in accounts payable (AP). The manual system is costly and time-consuming, bringing automation to the forefront as a solution. Healthcare facilities have unceasingly put up with essential products being required for supply lines. Such constant orders result in numerous purchase orders and invoices for payable accounts.

What is Accounts Payable Automation? Check out America's Best Bookkeepers

The process of Accounts Payable (AP) includes purchase orders and payment invoices. The AP system involves the electronic generation of invoices and bookkeeping entries rather than producing them manually. Electronic production allows healthcare facilities to deliver purchase orders to suppliers and receive invoices from them electronically. It boosts the process of working within the healthcare organization. However, automating the account payable process does not abandon the need paperwork because some orders require manual handling.

Why Use Accounts Payable Automation?

Until a facility sees the negative impact of paper handling, it may not see the use in automating the AP process. One incentive is that suppliers often offer deep discounts for fast invoice payment. While some facilities may hesitate to automate their AP because they consider paper-handling error-free, most will learn automation can also be. Suppliers may not be automated, making it necessary to continue manual accounts payable. Still, once a supplier can see the accuracy and speed of the automated system, they too will be on board. Healthcare facilities and suppliers must communicate and decide to automate the process together. The automated AP system is faster, requires less workforce to facilitate, and is highly accurate. The only drawback is that both the facility and the supplier have to be automated to use it between them. Check out America's Best Bookkeepers

Implementation Steps

For the successful implementation of AP automation, the following steps are required to be taken by the healthcare organization.

  • Recruit a highly capable Project Manager to run the automating AP process who will control all its aspects with efficiency and who has the ultimate authority to make decisions regarding the smooth running of the process.
  • Avoid spending much time between the training of departments and allowing them to go live for working because it will lessen the interest of departments to utilize the AP process.
  • Strive to perform both processes, i.e., automated process and current production procedure, to evaluate which process is less hassled and more productive.
  • The Project Manager should develop a networking department to handle a large number of suppliers to handle electronic purchase orders. Moreover, the networking department must oversee in-house capabilities to ensure that all the departments are interconnected with the AP process.
  • The Project Manager must have a separate IT department to manage software required to run the AP process. The software should input received invoices generated electronically into automating accounts payable software. Also, the software must produce regular reports of AP staff to reviews invoices before it is approved. The AP department must also review the working of employees involved in running the AP process.

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AP as an Increasing Priority

The lack of seeing the AP process as an organizational priority is one of the most significant problems for its implementation. Accounts payable departments must consider the process as an important priority. Most healthcare facilities can afford to use the electronic system, but there is a need to change the perception of the staff handling the AP process. The facility will see positive profit in this technological investment and see growing revenue on an annual basis.


Awareness of automating payments is increasing among hospital administrations for potential savings and future profits. The evidence-based decision-making process in the supply chain is essential for automation solutions, and there is a fundamental opportunity for healthcare facilities to take advantage of such an automated technology. Healthcare administrations that are craving quick solutions to their payment procedure must ponder the use of AP automation and its benefits.

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