TAG will deliver the most efficient audit of your overall purchasing/accounts payable process; maximizing recoveries and providing recommendations to reduce future recoveries through the adoption of improved procurement processes and procedures. Prior to the start of the review, TAG management will meet with designated management personnel to identify desired frequency of meetings; goals for this project and measurements of success.
I. Process Improvements – Insight to Vendor Disbursement Processes, Errant Spend
· Identify areas of financial loss within supply chain and disbursement processes
· Recommend operational improvements w/o increasing FTE’s
· Identify opportunities to improve Accounts Payable Pay Process and reduce costs including:
1. Vendor account reconciliation
2. Vendor statement reviews
3. Vendor credit memo processing
4. Tracking duplicate vendor names
5. Impact upon A/P processes due to departmental receipts of invoices and credit memos
6. Internal communication processes regarding returned goods and its impact upon A/P
II. Prevention- Corrective actions to help prevent future losses, Future Savings
· Identify and reduce duplicate vendors in Vendor Master Database; increasing payment efficiencies
· Review communication flows within, to, and between A/P, Purchasing, end user departments, and vendors
· Identify systemic bottlenecks and areas of financial loss; provide recommendations to eliminate these sources of financial loss
· Provide custom transaction reports identifying significant vendors and items needing management’s attention
III. Benchmarking – Industry Comparison
· Claims written for your hospital compared to the average amount of claims written for similarly-sized healthcare systems
· Identify metrics to measure to capture trends and growth
· Best practices recommendations to increase long-term efficiencies
IV. Monies– Recoveries
· Immediate Short-term Cash Infusion;
· Assist Accounts Payable in reconciling vendor accounts and recover cash balances due;
· Review Returned Goods process and recover funds from vendors;
· Identify funds spent in error are recovered and processes are corrected to guarantee future compliance including:
1. Discounts and Credits not taken
2. Duplicate payments caused by different -
a. Vendor Numbers
b. Vendor Names
c. Invoice Numbers
d. Entities within your IDN
3. Overpayments to vendors
4. Payments for incorrect item, and/or quantity price
5. Contract Compliance
6. Freight Charges in Error