How to Save Time and Eliminate Discrepancies and Errors With AI-Driven Automation
October 27, 2020
Inefficient, manual, paper-based business processes result in billions of dollars in annual loss for healthcare facilities and medical device vendors. From case scheduling to payment processing, current processes for typical orthopedic surgical implant billing have up to 15 manual, error-prone steps.
With the increasing demand for surgical implantable devices, the management costs for this manual process are only set to rise, causing further strain on healthcare facilities’ budgets and billing and materials management teams.
Both healthcare facilities and networks, such as Ambulatory Surgical Centres (ASCs) can save significant time and cost by using an automated, AI-driven solution to manage their implantable device supply chain (IDSC). Here’s how it can improve and streamline billing and purchase order reconciliation, as well as automate invoicing and data management.
Current surgical implant case-to-cash process
The current, manual process for completing and documenting a surgical implant procedure is disjointed, lacks standardization, and is challenging for different parties or stakeholders involved to access the information they need to proceed to the next step. The circulating nurse typically captures details about the implantable surgical device used in the procedure in the hospital or healthcare facility’s electronic health record (EHR). The materials management team then gets the information through paper-based processing for manual entry into their separate information system. Followed by a Purchase Order (PO) which is either emailed or phoned in to the sales rep, at which point the medical device rep must contact and inform the manufacturer of the PO number. And finally, the manufacturer will generate an invoice for the healthcare facility, usually sent via email or fax.
This does not include the additional, separate, manual processes the medical device rep must follow on the supplier and manufacturer side, adding further complexities and potential errors to the transaction and supply chain.
Challenges of surgical billing inconsistencies
Reconciliation between purchase orders and invoices can often be a challenge as well, since the PO entered by the provider may not match the invoice from the manufacturer’s system. The Inconsistencies may include mismatched prices, incorrect, missing, or excess part numbers, or discrepancies in order of line items between the invoice and PO.
These inconsistencies then require accounts payable and accounts receivable departments from both the healthcare facility and the manufacturer to manually reconcile the transaction, which can be time-consuming and a waste of valuable resources. Any discrepancy in line items could mean a lengthy review, and delayed payment for all parties.
Reconciliation by an automated, digital solution is able to flag inconsistencies faster and eliminate them, without the manual heavy lifting of traditional processes, ultimately, reducing the Days Sales Outstanding, and enabling healthcare organizations and reps to get paid faster across the supply chain.
Device manufacturer invoices are needed for facilities to ensure accurate and timely reimbursement payments for surgical implants to ensure sustainable financial operations for healthcare facilities. That’s why it’s critical to implement an automated, AI-driven solution that aids in reducing costly errors that could result in time-consuming revisions and delays in payments and reimbursements.
To learn more about the benefits of automating surgical implant billing and invoicing, contact us for more information.