Legacy Spend Management is Bad Medicine for Healthcare Organizations

In many ways, healthcare organizations operate just like any other organization. However, as anyone in this industry can tell you, the stakes in healthcare are much higher. Every dollar wasted is money that’s not going toward providing the highest possible quality of care to patients. Adding to the cost-saving challenge are strict laws and regulations put in place to ensure ethical practices and protect sensitive information. When broken, these rules can cost an organization dearly.

With profit margins thin as it is, relying on outdated spend management systems can cost an organization in more ways than one. Which means that managing travel, expenses, and accounts payable in compliant ways is critically important to both a healthcare organization’s financial success and the well-being of the patients they aim to serve.

Diagnosing Inefficiencies in Healthcare Spend Management Systems

Despite providing top-of-the-line treatments, many healthcare organizations continue to use legacy spend management systems. While it may seem like a cost-saving measure to not invest in a new spend management system, the truth is that these outdated, manual systems can cost an organization significantly. And the symptoms can show up in more ways than one.

For example, the more manual tasks an organization has, the greater the risk for errors, as well as the noncompliance penalties that come with it. Spend management systems that are tedious and difficult to navigate can also contribute to inefficiency and negatively impact employee satisfaction.

Despite these significant downsides, a recent Wakefield Research report found that 29% of healthcare leaders said their current travel and expense solution still relies on manual data entry. The same report also found that 29% of healthcare leaders said their current T&E solution is difficult for employees to use, and that even more (33%) said the same about their AP solution.

Wakefield Research also found that nearly a quarter (22%) of healthcare leaders know that their current T&E solution does not meet their regulatory requirements, which puts patient data and the organization at risk.

How Automation Cures Compliance and Manual Entry Challenges

An automated system can alleviate many pain points within a healthcare organization. It can reduce repetitive tasks, decrease manual work, and improve compliance. In fact, AP automation helps ensure invoices are paid in a timely manner, leading to a 24% reduction in late invoice payments.

Additionally, travel is a significant expense for healthcare companies. Whether it’s sending employees to conferences for continuing education or visiting physicians to patients' homes for bedside care, a solid travel and expense policy is crucial for staying within budget. By automating audits and integrating compliance checks directly into everyday processes, organizations can reduce the cost of mistakes in expense reports by an impressive 60%, according to internal SAP Concur data.

Having a mobile app for employees to easily capture and submit expenses on the go is one of the most common requirements healthcare leaders have for their organization’s T&E solutions (42%), according to a recent research study. SAP Concur’s highly-rated mobile app, with over a million positive reviews, equips organizations with real-time fraud detection, automated policy enforcement, and audit trails for added security.

Integrated Travel and Expense Solutions for Comprehensive Spend Management

In addition to automation, integrating travel, expense, and invoicing and putting them on the same platform centralizes and simplifies processes. Plus, employees no longer have to toggle between platforms, which enhances their employee experience and promotes efficiency.

In fact, IDC found that companies that switched from a disjointed, manual system to an integrated, cloud-based ERP saw a 19% increase in employee productivity. Plus, a solution like SAP Concur can integrate with existing ERPs. That way, an organization can keep systems that work best for them (or that can’t be changed for other reasons) and use it in tandem with an updated system.

With the addition of mobile device security like two-factor authentication, companies that upgrade their spend management can keep sensitive information safe while securely accessing and transmitting patient data remotely.

How to Use AI and Data to Strengthen Healthcare Spend Management

When asked by Wakefield Research, 34% of healthcare leaders said their current T&E solution doesn’t provide intuitive data reporting, and the same (34%) was true for their AP solution as well. Without access to valuable data, it can be difficult for any organization to identify gaps in their processes. Using predictive analytics, an organization can gain the added financial insight needed to properly forecast and manage existing budgets.

An investment in a system with AI means an investment in the future of the company. Because AI is always evolving and improving, processes will as well, keeping the organization up-to-date and in compliance with industry regulations. AI can also prevent future errors by identifying suspicious spending before payment. Plus, with 29% and 33% of healthcare leaders telling Wakefield Research their respective T&E and AP solutions are difficult for employees to use, the user-friendly features created by AI can help improve their efficiency and satisfaction in role.

Automated Spend Management to Save Money and Ensure Compliance

Ultimately, saving money and time while also staying compliant comes down to how your organization operates. Investing in an automated, integrated system results in fewer manual tasks and errors, increased compliance and security, and more resources to spend on providing high-quality service to patients.

If you’re ready to transform your healthcare organization’s spend management, learn how our intelligent T&E solutions can help you reduce administrative burden, strengthen compliance, and redirect critical resources back to patient care.