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June 28, 2022
Health systems lose millions each year due to process inefficiencies and errors throughout the procure to pay (P2P) process. Most of these lost funds are preventable, but teams are content, in a state of denial, or misunderstand the process. To bring awareness and begin to prevent leaking dollars, begin by creating a process flow map. What is Process Mapping? Process mapping, or process flow mapping, is the visual representation of how tasks are actually completed in a workflow. A process map brings visibility to who is involved in a process and sheds light on areas that need improvement. Thus, it […]
June 24, 2021
At TAG, we urge that optimized processes are the key to increased efficiency and productivity while decreasing leaked funds – especially in your health system’s procure to pay (P2P) processes. But how do you make a returned goods or exceptions handling process-improvement project a priority for your leaders? Priorities vary depending on the level of decision-making you have in your organization. You do not always need to hold the “power” to make a difference or kick start a project. With a bit of drive, persistence, and influence you can begin making an impact at any level – as a supply […]
February 27, 2020
Typically, the players in the Procure-to-Pay (P2P) process are considered to be Supply Chain and Accounts Payable. Most systems fail to acknowledge an equally crucial player – the end user. Though many recognize that the end-user kicks off the P2P process, they do not see that the success of the P2P process often hinges on the end user’s first acts. Traditionally, the end-users’ role is relegated to requesting products and, perhaps, some aspects of receiving. The end user’s requests are focused on their needs – either individually or as a department. Because they are provided with limited information about the […]
January 29, 2020
Looking to increase margins and cut costs in your health system’s Procure-to-Pay (P2P) processes? One often-overlooked tool to accomplish this is process mapping or creating a visual representation of organizational processes. This not only identifies costly process gaps but also identifies areas lacking accountability and communication. In healthcare systems’ P2P, commonly broken processes include: Extended processing time for an invoice with incorrect POs Delayed vendor payments Contract price implementation Returning products to suppliers Types of Process Maps By identifying the current and ideal states of processes, organizations can more clearly determine where to deploy resources to drive efficiencies and cut […]
October 10, 2018
Your AP software system likely contains a host of features to prevent duplicate payments or overpayments–but we never recommend relying on software alone to catch every error. As we like to say: your AP software is only as smart as your staff. The Audit Group’s Natalie Berkley explains a recent example in which our client had been paying the same vendor twice because of a mistake in the vendor master. Cleansing and maintaining your vendor list is the best way to prevent duplicate payments like this, but taking the time to do so is not always easy for an AP […]
September 24, 2018
Materials management refers to the process in a hospital in which products are received, stored, returned and distributed. It’s a large, complex process–and it deserves far more attention than it often receives. Tony Brauchle, one of TAG’s auditors, gives his overview of the process and how one of his clients benefitted from an audit. A materials management review is just one of many ways The Audit Group uses process engineering to establish accountability throughout your organization. If your hospital is suffering from inefficient procedures, or a lack of them altogether, contact our expert auditors today.
September 5, 2018
In our many years reviewing health system cash flow, we’ve found that returned goods are one of the largest areas of claims identified and recovered. Significant money may be lost during the return process, due to lack of proper communication between the Accounts Payable, Purchasing, and Receiving departments. Ideally, a health system’s returns policy would require all departments to return items through the Receiving (or Shipping) department, with persistent follow up by Accounts Payable or Purchasing. This back and forth communication is crucial to ensure no funds are lost. These communications should be properly documented, and departments should task one […]
