Healthcare supply chains face unique challenges when it comes to bill-only purchasing, a process allowing facilities to acquire specialty items for specific procedures without fully stocking them in inventory. At a recent Power Supply Advisory Group meeting, members discussed how managing this process requires attention to detail, effective communication, and cross-departmental coordination to minimize disruptions and ensure accuracy. Here, we’ll explore the key themes raised during the conversation, highlighting the importance of clear procedures, compliance, and cross-departmental collaboration to optimize outcomes and reduce risks, ultimately supporting smoother and more efficient operations across the healthcare supply chain.
Automating for Accuracy
Automation is instrumental in reducing risks and inefficiencies in bill-only processes. Matt Putman shared that one of the key drivers for automating in his facility was the potential for missed revenue. He stated, “It's not just about expense management, it's more about revenue generation.” By implementing automation, organizations can streamline processes and reduce the likelihood of human error, making it easier to identify discrepancies and improve accuracy. However, Putman highlighted that while automation significantly aids in compliance tracking, “someone still has to take the time to stop, review it,” underscoring the need for manual checks to complement automated systems. This combination of automation and human oversight ensures that the process remains robust and responsive to any potential issues that may arise.
Strengthening Vendor Compliance
For bill-only purchasing to function smoothly, clear communication and vendor compliance are essential. Matt Putman described the need for timely invoice submissions, especially in critical areas like the Cath Lab, explaining, “In the OR setting, we say it has to be within 48 business hours of when the procedure was or else it’s going to be considered late.” He added that vendors who fail to comply face a three-strike policy, ultimately resulting in a temporary suspension. This structured approach helps mitigate the risks of billing delays and ensures that vendors align with the organization's standards.
Justin Poulin reinforced this by saying, “…regular reinforcement is key to keeping everyone aligned.” By continually emphasizing policy expectations, organizations can ensure that vendors remain fully aware of their obligations and are less likely to deviate from agreed-upon terms. Consistent communication and enforcement of policies create a framework where vendors and healthcare organizations can work in harmony, reducing miscommunications and strengthening partnerships over time.
Tracking and Data: Building a Strong Foundation
Accurate data collection is essential for managing bill-only purchasing effectively, as it enables organizations to closely monitor inventory and expenses. Suzi Collins explained how her team adapted by using a SharePoint spreadsheet as their main tracking tool: “If a vendor called because they missed the PO, that became our tracking mechanism.” This approach allowed them to provide real-time updates when delays were questioned, whether due to waiting on part numbers or resolving vendor issues. This simple yet effective system ensured that all stakeholders were informed, facilitating consistent communication with vendors and internal teams alike, even without advanced software.
However, tracking alone isn’t enough—acting on the data promptly can make all the difference in preventing revenue loss. Emphasizing the critical nature of timing, Lisa Farmer highlighted the urgency involved, explaining, “We have less than a week to get it, or if we don’t, we can’t bill for it.” By combining adaptable tracking methods with rapid response times, healthcare organizations can effectively minimize financial risks and keep their supply chains running smoothly.
Fostering Cross-Departmental Collaboration
Effective management of bill-only purchasing requires strong cross-departmental collaboration. Matt Hoffmann emphasized the importance of process clarity, explaining, “You really have to think through that process… so that the surgical staff, purchasing, supply, and accounting staff know that this is the process to follow.” He highlighted how a lack of alignment can lead to significant financial consequences, such as unexpected expenses or missed revenue opportunities.
Brian Bartel added that clear communication is key, particularly when aligning with vendor expectations and internal policies, stating, “Understanding your bill-only process is important. Communicating that with vendors and looking at your contracts to ensure alignment is crucial.” By fostering these cross-functional partnerships and reinforcing clear policies, organizations can mitigate disruptions, improve financial outcomes, and maintain efficiency throughout the healthcare supply chain.
Moving Forward: Building a Resilient Bill-Only Process
As the healthcare supply chain industry evolves, refining bill-only purchasing processes will be crucial for achieving greater efficiency, cost control, and resilience. By integrating automation to streamline compliance and reduce manual errors, organizations can ensure that both their financial and operational processes remain robust. Establishing clear vendor compliance protocols, reinforced through regular communication, helps maintain alignment with organizational standards and fosters stronger partnerships.
Additionally, adaptable data tracking methods allow for real-time monitoring and timely decision-making, reducing the risk of revenue loss and enhancing overall process control. Through ongoing collaboration and the continuous sharing of best practices, healthcare organizations can develop sourcing strategies that are not only resilient but also responsive to the complexities of today’s healthcare environment. Ultimately, this proactive approach supports operational efficiency, enabling healthcare supply chains to deliver high-quality care in a dynamic landscape.
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