July 25, 2018

Tips for a Successful Item Master Cleanup

Your health system’s item master is a highly valuable, often overlooked set of data. Properly maintained, and your item master will ensure your group receives the correct items for the correct price, every time. A neglected item master, however, may create long-term issues for your system, such as pricing errors. Let’s take a closer look at ways your item master could be flawed and how your team may improve its effectiveness. Following the Item Master The item master is only effective when it is used. If someone purchases a product without using a purchase order, the item master is not […]
June 20, 2018

Managing Your 340B Program

The 340B Drug Discount Program offers qualified hospitals deeply discounted rates on drugs, but many aren’t using the program to its maximum benefit. A 340B pricing analysis from an experienced healthcare auditor can reveal several errors in your drug pricing and prevent you from leaving money on the table. Let’s take a look. 340B Program Challenges Just because your health system is eligible for 340B doesn’t mean it’s a turnkey process. The government and drug manufacturers adjust the pricing guidelines for 340B products every quarter, keeping back-office teams on their toes to update each item’s pricing as needed. That creates […]
May 24, 2018

Hospitals Should Review Hotel Invoices to Prevent Tax Paid in Error

Many not-for-profit hospitals are aware of the exemptions that they may be eligible to receive on sales tax for hotel invoices, especially those in tax-exempt states. However, it’s important not only to be aware but also to monitor hotel invoices to ensure tax exemptions are correct and save money for your organization. Issues can arise on hotel invoices, and over time, hotel sales tax billed in error can add up. Hotels may inadvertently bill hospitals for sales tax. Your Accounts Payable department may not be able to distinguish the charges, as tax charges are not always easily visible or itemized […]
April 5, 2018

Monitor Rebates and Discounts to Prevent Lost Funds

Large healthcare organizations can have thousands of active vendors. Every day, purchases are made, contracts are signed, and items are returned. All of this activity can cause details to slip through the cracks, making it very important to closely monitor rebates and discounts offered by vendors. Don’t let an opportunity for cost-savings go missed. Oftentimes, vendors will offer promotional discounts and rebates based on the large volume that their healthcare clients purchase during a pre-set time frame. Over time, if your health system is not taking advantage of rebates, the amount of money lost grows. Keep an Eye on Contract […]
October 19, 2017

Returned Goods Process: What to Document When Making a Return

One of the largest areas of claims recovered from an audit of a major healthcare system is Returned Goods. Effective returned goods processes are necessary to properly account for all return credits owed to a hospital. A successful returned goods process starts with knowing what to document when making a return and knowing when to follow up with vendors. If no returned goods process is in place or you are not accurately documenting your returns, you could be leaving money on the table. TAG Develops Returned Goods Process for Major Health System In a recent process review, The Audit Group […]
September 7, 2017

Rebates Cause Tracking Challenges

At any large healthcare system, vendor rebates can be difficult to manage. Because they require a multi-step process to track dollars earned, credits issued, and monies paid, rebates cause tracking challenges for Accounts Payable departments. Rebates Versus Lower Contract Pricing Oftentimes, vendors use rebates as a key part of their pricing strategy and structure. This tactic makes their pricing more attractive to potential clients. When tracked through Accounts Payable and issued correctly, rebates can help healthcare organizations save some money. That being said, inconsistent tracking is the primary problem with vendor rebate programs. Some vendors pay rebates via check refunds, […]
August 8, 2016

Promptly Pay Vendors Offering Payment Discounts

Issues: Many vendors offer cash discounts for invoices paid within a set number of days Payment terms may not be communicated to AP resulting in invoices being paid in full within the cash discount period Example: A vendor offered a 3% discount for invoices paid within 90 days Several invoices paid within 30 days, but the system did not apply the discount TAG contacted the vendor to request credit for missed discounts Vendor confirmed credit and agreed to deduct 5 months of discounts from the system’s next check run TAG Tips: Give highest priority to invoices offering cash discounts for […]
Promptly Pay Vendors Offering Payment Discounts
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