Healthcare supply chains help with many tasks such as ordering medicines and medical devices, managing bills, and making sure suppliers follow rules. But, healthcare groups face many problems that make it hard to manage their supply chains well.
One big problem is that many healthcare groups still use manual work to process orders and invoices. Manual work leads to mistakes like wrong orders, late deliveries, and running out of stock. These errors delay patient care and make extra work for staff.
Manual invoice handling also causes billing mistakes like paying twice or wrong contract prices. This raises costs and causes problems with vendors. For example, Piedmont Healthcare lowered price exceptions by 81% and contract price mistakes by 70% by using automatic checks on invoices and prices. This helped stop overpayments and made finances more accurate.
Checking vendors’ credentials is another hard task for healthcare providers. This process makes sure suppliers and their workers meet all rules before entering healthcare sites and providing products safely. In the US, this can take a lot of time and must be done many times because it needs checks like background screening, license checks, and ongoing compliance updates.
Delays in vendor checks can slow important deliveries, especially for special items like implants that need exact paperwork. Poor vendor credentialing also raises work costs and risks breaking rules. Some health systems like Medical University of South Carolina (MUSC) made vendor relationships better by making these checks simpler.
Many healthcare groups use several systems, some old, to run supply chain tasks. These include electronic health record (EHR) systems, enterprise resource planning (ERP) tools, contract platforms, and spreadsheets. When these systems don’t work well together, it causes bad data, repeated work, and less clear views of supply chain actions.
For example, when contract data and product records do not match, ordering and billing errors happen. This adds to work costs and slows down operations. Studies show that automatic item and contract management can cut errors and increase contract matching, saving about 3% of total spending.
Since COVID-19, supply chains in healthcare have faced more problems with products being unavailable. Shortages, late shipments, and interruptions hurt patient care quality and safety. Healthcare leaders say that handling these risks means building stronger supplier ties, improving clarity, and using smart data to predict demand better.
To fix these problems, healthcare providers are using order automation. These tools help reduce mistakes, make work smoother, and improve care for patients.
Order automation turns buying processes digital. When these tools connect with EHR and ERP systems, they check contracts and prices before orders go through. This keeps orders within rules and stops data entry mistakes.
Good order automation stops errors like buying wrong items, too many or too few products, or old stock. For instance, Northwestern Medicine improved operations and saved money by digitizing their buying-to-payment process and cutting out manual steps.
Order automation also helps track inventory better by showing supplies in real time. This prevents running out of needed items and cuts waste from expired products. Children’s of Alabama automated their invoice handling and now process 90% of invoices without human help. This cuts errors and speeds up work by 90%.
Providers who use automated orders for bill-only implants and consignment items see better billing accuracy and contract matching. McLeod Health reached almost 100% contract compliance by automating invoice checks, making sure payments match approved items and prices.
Keeping vendor access safe while working efficiently is very important for healthcare groups.
Automated credentialing tools handle background checks, license checks, and compliance tracking. Using cloud platforms, healthcare sites can give vendors quick and safe access. For example, symplr Access lets vendors check into places in less than 30 seconds, even without internet, while keeping detailed audit records.
Centralized credentialing systems make it easier to watch vendor actions and improve communication between healthcare teams and suppliers. This lowers risks of unauthorized entry and helps with audits. Strong Memorial Hospital’s supply manager praised symplr Access for helping with audits by providing quick and accurate access reports.
Many hospitals are moving from local servers to cloud-based supply chain systems. About 70% of hospitals may use cloud-based systems by 2026.
Cloud systems allow data to be shared in real time, helping many groups work together and manage supply chains from one place. This cuts problems caused by isolated systems. Cloud platforms also connect supply chain work with finance, clinical, and other operations, making everything clearer and quicker.
Health groups like ECU Health and Northwestern Medicine saved money and worked better using cloud platforms linked with automated order and invoice tools.
While cloud systems have benefits, moving existing data, keeping cybersecurity, and connecting with old systems can be hard. Healthcare groups must plan carefully to avoid problems and keep data safe.
Artificial Intelligence (AI) and workflow automation help healthcare supply chains work smarter, faster, and with fewer mistakes.
Almost half of healthcare groups in the US use AI to predict demand, track shipments, and spot supply problems before they happen. GHX’s ResiliencyAI platform uses data to help predict risks and manage inventory better. This helps stop shortages and keep important items available.
AI also helps match invoices with contracts and purchase orders. This cuts human mistakes, stops overpayments, and speeds up the buying-to-paying process. Phoebe Putney Health System went nearly paper-free on invoices and captured accruals better by automating their accounts payable work.
AI helps watch vendor compliance by sending alerts for problems or expired credentials. This keeps sites safe and makes sure rules are followed with less need for manual checks.
Beyond AI, workflow automation simplifies routine tasks like order approvals, invoicing, payments, and vendor setup. This lowers the workload on healthcare staff, letting them focus more on patient care and improving operations.
These examples show that automating orders and vendor credentialing is becoming a common practice in US healthcare supply chains.
Healthcare leaders in the US should update supply chain management by using order automation, vendor credentialing tools, AI, and cloud systems. This helps improve efficiency, lower costs, follow rules, and deliver better care.
Important points to consider include:
By focusing on these areas, healthcare providers can fix long-standing problems and be ready for new demands in the coming years.
GHX simplifies the business of healthcare by connecting healthcare organizations through cloud-based supply chain networks, enhancing efficiency and improving patient outcomes.
GHX focuses on streamlining processes, such as procure-to-pay and order-to-cash, to tackle complex challenges and minimize inefficiencies in the healthcare supply chain.
Automation helps reduce billing errors, speed up the invoicing process, and ensures compliance with contracts, ultimately improving financial health for healthcare providers.
GHX has facilitated $2.2 billion in healthcare industry savings in the last year by optimizing supply chains and reducing inefficiencies.
AI-powered innovations in the GHX platform enhance data analytics and automation, helping organizations stay ahead of disruptions and manage resources effectively.
GHX’s improvements in efficiency and trust have strengthened relationships between healthcare providers and suppliers, fostering a collaborative environment.
GHX tackles issues like order automation, invoice management, and vendor credentialing to modernize healthcare supply chains and reduce operational challenges.
GHX offers a range of solutions including order automation, inventory management, and automated invoicing to enhance the healthcare supply chain.
GHX provides services like Marketplace Bill Only, which automates bill-only implant and consignment orders, ensuring compliance and accurate pricing.
GHX aims to simplify the business of healthcare to focus on improving patient care by connecting organizations and optimizing supply chain processes.
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