Current regulatory, financial and patient pressures are pushing healthcare organizations to operate more quickly and efficiently. At the same time, health systems are facing shifting payment models, narrowing profit margins and limited budgets – all of which emphasize the need for healthcare CFOs to have more and better visibility into their spend data. However, surveys show one in four health care systems don’t have a data governance model in place.
In travel and expense management specifically, having a standardized data management practice is especially important. Between corporate, ghost, virtual, corporate and even personal cards for corporate purchases, many healthcare employees today spend corporate dollars across more spend categories, using more payment methods than ever before. Tracking this becomes virtually impossible for most healthcare organizations. In fact, employee-initiated spend has become the largest unmanaged spend category in almost every company’s financial program.
Compounding this issue is the fact that many healthcare employees still manually input and process travel, expense and invoice data. This leads to untimely and inaccurate insights. Not only does manual data entry hinder visibility into an organization’s overall spend, it is also time-consuming. Cardinal Health, which processes about 20,000 expense reports a month, took more than twice as long to submit, approve and track expenses before implementing a dedicated expense reporting solution. As profit margins narrow and budgets shrink, CFOs can’t afford to waste time. [Read more…]