Accounts Payable: Creating Competitive Advantage
Most people view the Accounts Payable (AP) department as a function within the Procure to Pay process that is necessary but unlikely to create a competitive advantage. However, a company can transform the traditional AP cost center into a cost savings driver. It can do this by employing a simple strategy that consists of analytical tools, robust processes, and a team approach to drive outstanding results. This paper outlines how we forged this transformation at Baptist Health.
CQO Tie-in: Transforming the Accounts Payable function into a cost savings driver is a perfect example of the intersection of Cost, Quality, and Outcomes. Reducing manual labor impacts labor costs directly, and indirectly impacts the ability to negotiate more favorable costs based upon faster payment to supply partners. With credit holds virtually eliminated, quality of care and patient outcomes are no longer threatened by suppliers withholding procedural supplies for payment. And ultimately, suppliers want to do business with healthcare organizations that can support their cash flow through on-time payments. Having a solid reputation among suppliers ensures the most innovative products in the market will be available to provide the highest quality patient care.