Healthcare organizations face numerous challenges in maintaining financial stability, and one of the crucial strategies involves maximizing overpayment recovery. This is where healthcare accounts payable recovery audit contractors come into play. These specialized firms assist in identifying and recuperating funds lost, or misappropriated from various sources. However, selecting the right AP recovery audit firm is a critical decision that requires careful consideration. In this blog post, we will discuss five essential factors to consider when choosing a healthcare accounts payable recovery audit provider.
1. Industry Expertise and Experience
The healthcare landscape is intricate and subject to ever-evolving regulations, new technology vendors and new product innovations. It is imperative to opt for an AP recovery audit contractor with an in-depth understanding of the healthcare sector. Look for contractors with a proven track record of working exclusively in healthcare as well as contractors who have developed a network of contacts within industry vendors. These connections can significantly and positively impact the efficiency of the audit workflow. Plus, the contractor’s familiarity with the nuances and challenges specific to healthcare will significantly enhance their ability to detect potential cost discrepancies and navigate the intricacies of payment processes.
2. Communication & Responsiveness
The cornerstone to a successful AP recovery audit is clear communication between the auditors and the healthcare system client. Communication between all parties fosters transparency and eliminates the likelihood of duplicating work efforts with vendors and the AP team. Another factor to consider when choosing your healthcare recovery accounts payable audit contractor is responsiveness. Your auditing firm must be responsive to your needs and inputs as well as those of your vendors. It is imperative the firm represents your organization to the vendors in a manner that is consistent with your corporate culture. These vendor relationships have been built over years; the auditing firm must respect these and be responsive to each vendor.
3. Advanced Technological Capabilities
Effective accounts payable recovery audit contractors rely on advanced technology and sophisticated data analytics tools to conduct thorough audits. The contractor should possess the capability to rapidly and accurately analyze substantial volumes of data, thereby pinpointing irregularities and potential billing errors. By analyzing historical data and trends, potential issues can be proactively identified and addressed before they escalate.
4. Self Sufficiency
It is imperative the accounts payable recovery audit firm you choose can analyze the accounting data and manage the work process from start to finish. AP recovery audit firms should minimize the time required by your staff to support their recovery work. By investing in a team of professionals with deep knowledge of the healthcare industry a successful AP recovery audit firm will be able to merge seamlessly with your staff, operating as an extension of your team. A successful auditor will source answers to financial questions on their own, respecting the time and workload demands of AP and supply chain team members.
5. Comprehensive Data Gathering
Successful AP recovery audit contractors will do more than simply request a statement from a vendor. While this is a valuable service on its own, it is just the tip of the iceberg for a complete procure to pay review. Additional areas to review include validating that returned items received credit from the vendor, confirming that capital purchase orders received credit for any deposits made and validating that applicable trade-in value is applied. Moreover, contract compliance reviews are why you need an audit firm who will dig deeper to ensure pricing discrepancies, freight terms, payment terms and rebates are all consistent, honored and received.
Choosing the right healthcare accounts payable recovery audit partner can significantly impact your organization’s financial health. By considering factors such as industry expertise, prioritization of communication and transparency, technology capabilities, self-sufficiency, and data gathering, you can make an informed decision that aligns with your organization’s needs and goals. A well-selected provider should not only recover lost overpayments but also contribute to the overall efficiency and compliance of your healthcare financial operations.