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GHX OnDemand AP(R) Solution Improves Cash Flow, Streamlines Invoice Processing for Healthcare Providers
Date:6/16/2010

LOUISVILLE, Colo., June 16 /PRNewswire/ -- For many healthcare providers, 90 percent of the costs associated with invoices are tied to manual processing. By automating all invoices through the OnDemand AP® solution from GHX, hospitals can reduce processing costs by an average of $12 per invoice.

Saratoga Hospital in Saratoga Springs, N.Y., is one of the first hospitals to employ OnDemand AP. This invoice automation solution makes it possible for them to receive 100 percent of their purchase order (PO) invoices electronically, even from suppliers who still submit invoices via fax or mail. Prior to going live, Saratoga Hospital was receiving up to 40 percent of its invoices from vendors via Electronic Data Interchange (EDI), but the remaining 60 percent were paper. With OnDemand AP, Saratoga Hospital benefits from electronic processing, while also gaining visibility into exceptions, freeing up the Fiscal Services department to concentrate on more "financially important" tasks such as accruals. Saratoga's next goal is to automate non-PO invoices using OnDemand AP.

"I was experiencing a 15-20 percent invoice exception rate in my materials management information system, and our accounts payable processor was absolutely buried," said Becki LaGrange, systems analyst, Materials Management, at Saratoga Hospital. "Now that we have moved to 100 percent electronic invoices for purchase orders, my exceptions are handled in OnDemand AP before I even put them into my system."

OnDemand AP enables hospitals to eliminate manual invoice processing and reconciliation tasks, cutting the average time it takes to process an invoice from 25-60 days to 2-5 days while also reducing keying
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