Before the pandemic, experts estimated that 15% of supplier invoices to hospitals had billing errors. Now, on the other side of the pandemic, some estimate this error rate has doubled.
Reasons? Your hospital is likely buying different products. From different suppliers. At different prices. And dealing with new or different personnel who aren’t familiar with the discounts and contract terms you’re eligible to receive.
Billing errors cost hospitals valuable time and money. Here’s how to try and catch errors before it’s too late.
Don’t assume supplier invoices are correct; check the math every time.
Hospitals already spend lots of energy verifying supplier quotes and contracts for accuracy. Using the same rigor on supplier invoices can avoid unnecessary costs. Here is a checklist of things to keep in mind that can help uncover mistakes in your invoices:
- Don’t auto-authorize payment on credit or p-cards.
- Match invoice and PO details, making sure SKUs, pricing, quantity and terms are correct.
- Verify that applicable GPO contract and terms have been applied.
- Verify that line-item pricing is correct for each product or SKU.
- Confirm that correct discounts have been applied.
- Check the invoice total to ensure line-items prices are added correctly.
- Finally, even if the math does add up, make sure the invoice hasn’t already been paid.
A department manager of a community hospital recently saved $87,000 by “checking the math.” Before approving the invoice for payment, she took an extra minute to double-check prior invoices and discovered the service costs had already been billed and paid.
However you check the math, making sure invoices are correct before paying is an easy way to save avoidable cost.
Miga Solutions provides the most accurate and actionable pricing information, enabling hospitals to lower their medical equipment total cost of ownership (TCO) by 12-16%. To learn more about how your hospital can save, contact us.