With five acute-care hospitals, 10 major partners and a statewide operation, a major integrated health system in the Northeast was growing rapidly. To keep up with growth they needed health care payment solutions that would reduce the amount of paper and checks processed and help bring efficiencies to their cash flow management.
Many vendors were still receiving paper checks, with some waiting 60+ days for payment. The health system was looking for a payment solution that could provide a range of efficiencies and help improve vendor relationships.
After reviewing a number of payment solutions, they chose American Express’ Buyer Initiated Program (BIP). The web-based platform integrated smoothly with the group’s existing ERP system and enabled them to expand electronic payments. Implementation and integration were completed ahead of schedule and the health system reports that every month has been a success in increasing spend and acceptance.
BIP was a success for all parties involved. One of the greatest advantages for the health system is that they have been able to maintain and extend Days Payable Outstanding (DPO) by leveraging the American Express billing cycle. The utilization of American Express BIP (Buyer Initiated Payment) enables an organization to extend DPO (Days Payable Outstanding) by up to 14 days, while managing DCOH (Days Cash on Hand.)*
They’ve also enjoyed a boost to their bottom line from incentives provided by the American Express rebate program and reductions in the cost of paper processing. At the same time vendors appreciate being paid and receiving payment information more quickly.
* The number of days by which your DPO is extended will depend on when during your American Express Card billing cycle you charge a transaction to a supplier. The date the transaction is posted to your account, and the date you pay the amounts due on your American Express billing statement will determine the number of days you extend which may be less than 14 days.
*Explore American Express HealthCare Payments Solutions