January 14, 2019

Are You Managing Your Purchasing or Allowing Vendors to Manage It?

Hospital purchasing contracts exist to protect an organization’s funds by clearly defining suppliers’ terms. Not having a contract on a regularly purchased item can lead to higher pricing, as one of our hospital clients discovered after a vendor rep left.   The hospital had a verbal agreement with the manufacturer’s representative for textile products, which were purchased through a distributor. After the rep left the company the distributor began charging the hospital the manufacturer’s list prices because it had no vendor agreement for the rep’s discounted pricing. Since the hospital also lacked a contract in its system for the discounted […]
July 26, 2017

Vendor Invoice Errors and Problematic Purchase Orders

Invoice errors happen. It’s a part of the business we are in. However, in healthcare, vendor invoice errors may be overlooked during payment processing. In fact, many health systems may not have a procedure in place for documenting and tracking these errors or the credits issued to correct them. The Audit Group works with healthcare clients nationwide to develop processes to avoid errors like these. Vendor Invoice Errors Cause Confusion We recently worked with a client to discover that McKesson had issued two invoices for the same software and maintenance charges. Both invoices were subsequently paid – all against the […]
Vendor Invoice Errors and Problematic Purchase Orders
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