Hospitals and health systems frequently operate with inconsistent or outdated payment terms across vendors. This inconsistency leads to missed opportunities for early payment discounts, poor cash flow forecasting, and strained supplier relationships. Many organizations also find themselves overpaying or paying too quickly without aligning terms to contract agreements.
Pay term inefficiency stems from a lack of visibility into historical payment behavior, non-standardized policies, and the absence of an integrated strategies linking finance, supply chain, and AP. Over time, these gaps contribute to lost savings and working capital constraints
TAG helps clients optimize payment terms by aligning what’s in their ERP with what’s in their vendor contracts, ensuring accuracy, compliance, and financial consistency across the payables process.
How TAG Solves It
In cases where no formal terms exist, TAG works to negotiate term extensions or introduce prompt-pay discounts, giving clients flexibility to improve working capital while maintaining strong vendor relationships.
Improved working capital and cash flow management
Consistent, contract-aligned payment terms
Increased rebate capture and early pay discount utilization
Strengthened vendor relationships through transparent term alignment
