August 24, 2018

Ignoring Invoice Discrepancies Can Lead to Financial Loss for Health Systems

Despite having vendor contracts in place, invoice errors happen. Human error is a part of the business we are in. However, many vendor invoice errors are overlooked during payment processing. This is due to the fact that many health systems do not have a procedure in place for documenting and tracking this error. The Audit Group works with healthcare clients nationwide to develop processes to avoid errors like these. When a Breakdown Happens Imagine a Healthcare system started an agreement with a vendor in November of last year. During the course of the vendor relationship, purchase orders were always issued […]
August 22, 2018

Keep Tabs on Your Contract Pricing

In theory, contracts should always save your hospital money. However, we often see instances where health systems enter into a multi-year contract with a vendor and simply trust that they will receive the contract price, every time. We recently conducted a pricing review for one of our clients and noticed that one item’s price had incorrectly spiked and cost them nearly $375,000 overtime. Contracts offer convenience and savings for health systems across the country, but they aren’t foolproof. Human error, as well as computer errors, may still disrupt your item pricing and negatively affect your organization’s cash flow. Contact The […]
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, […]
Rebates Cause Tracking Challenges
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