Healthcare Services Provider Case Study

Role Filled

Project Detail

$2-3 Million Working Capital Impact

Successfully negotiated extended payment terms from N30 to N45 with approximately 50 vendors, affecting $2-3 million in AP balance

80% Time Reduction

Implemented Stampli, an AI-based AP system, reducing invoice processing time from 5 minutes to 1 minute per invoice

16 Hours Weekly Savings

With 30-50 invoices daily, achieved significant labor time savings for the AP team

Improved Vendor Management

Migrated 80% of critical vendors to ACH, reducing payment delivery time from 7+ days to ~3 days

About The Client

The Healthcare Services Provider operates in the healthcare services industry, providing toxicology testing, behavioral health, and compliance-focused solutions to healthcare providers and organizations.

Industry: Healthcare Services

Scope: The client serves a diverse range of customers, including commercial properties, homeowners associations, resorts, public parks, golf courses, healthcare facilities, and educational institutions.

Key Benefits & Lessons Learned

Process Automation & Time Savings:
The transition to Stampli resulted in a more structured, automated AP workflow, reducing manual effort and increasing accuracy

Improved Financial Visibility:
AP reporting dashboards and vendor portals increased transparency, reducing the volume of vendor inquiries

Scalability & Compliance:
Implemented HIPAA-compliant AP workflows, ensuring data security while standardizing AP processes

Time Management is Critical:
Successfully balancing full AP management duties while implementing Stampli underscored the importance of strong project management and prioritization skills

Solutions & outcomes

Solution Outline
The project strategy was multi-faceted that included prioritizing integration timing, creating a robust integration roadmap, developing a close calendar checklist and uniform account reconciliations, centralizing key accounting functions, investing in new positions, and correcting the ERP set-up.

Project Outcome Summary
The project delivered significant improvements in AP efficiency, cost savings, and cash flow management through system implementation and process optimization. By implementing Stampli, automating workflows, optimizing payment terms, and transitioning vendors to ACH, the client achieved faster invoice processing, reduced costs, and improved working capital position. These enhancements provided better visibility into AP metrics and freed up staff time for higher-value activities, ultimately supporting the company's cash management objectives.

Client Challenges

Lack of AP Structure: The AP function lacked organization, with manual processes, unclear vendor records, and frequent errors

Cash Flow Sensitivity: The company faced tight cash constraints, making vendor negotiations crucial for liquidity management

Inefficient AP System: The previous AP system (AVID) was ineffective for invoice automation, vendor payment management, and data visibility

Manual Payment Processing: Weekly AP payment processing took a full day to complete, limiting the AP team's bandwidth for other tasks

Key Project Elements & Deliverables

Systems & Tools Used: NetSuite (ERP), Stampli (AP automation), AVID (legacy AP system), Power BI (reporting)

Timeline: 3 months total, with Stampli implementation occurring alongside full AP management

Data Migration & Integration: Migrated 1,100 open invoices into Stampli and mapped them to NetSuite for seamless syncing

Key Deliverables:

Stampli implementation and integration with NetSuite
AP workflow automation for invoice processing and approvals
Vendor payment profile standardization and ACH transition
Payment term optimization with 50+ vendors
Power BI dashboards for AP metrics and reporting
Training and knowledge transfer for AP staff

Project Objectives & Business Needs

Key Project Objectives:

Implement Stampli to automate invoice processing and AP workflows
Clean up vendor payment profiles and transition key vendors from checks to ACH
Improve cash management by extending vendor payment terms and enhancing financial reporting
Increase AP process visibility through reporting dashboards and vendor self-service portals

Business Needs:

The client's AP function was inefficient, with unstructured processes and vendor payment delays
Better invoice automation and vendor payment management was needed
Cash flow management required improvement through optimized payment terms
AP staff needed better tools and processes to increase productivity

SOLUTION IMPLEMENTATION

Solution Outline: The project implemented several key enhancements to the AP function:

AP System Implementation: Fully implemented Stampli, optimizing invoice workflows, syncing with NetSuite, and improving compliance
Financial Workflow Automation: Automated invoice approvals and vendor payments, cutting down manual AP processing time by 80%
Payment Term Optimization: Negotiated N30 to N45 terms for 50+ vendors, positively impacting working capital by +$2 million
Vendor Payment Method Enhancement: Transitioned 80% of critical vendors to ACH, ensuring faster, more reliable payments
Process Visibility & Reporting: Built Power BI dashboards to track AP statistics, reducing vendor inquiries and internal reporting bottlenecks

Outcome Details

Milestones Achieved:

Reduced invoice processing time from 5 minutes to 1 minute per invoice (80% reduction)
Saved 16 hours of weekly labor time for the AP team
Transitioned 80% of critical vendors to ACH, reducing payment delivery time
Extended payment terms from N30 to N45 with approximately 50 vendors
Reduced weekly AP payment processing time from a full day to one hour

Outcome Details:

Efficiency Gains: The 80% reduction in invoice processing time significantly improved AP team productivity
Vendor Payment Optimization: ACH transition improved vendor satisfaction while reducing check-related processing costs
Cash Flow Improvement: Extended payment terms with 50 vendors positively impacted $2-3 million in AP balance, improving working capital position
AP Payment Processing Efficiency: The dramatic reduction in weekly payment processing time freed up staff for other high-value activities
Process Visibility: Power BI dashboards provided better insights into AP metrics, reducing vendor inquiries and improving decision-making

How a Leading US Healthcare Services Provider Achieved 80% Reduction in Invoice Processing Time & Optimized Cash Flow Through AP Automation

Quantifiable Outcome Summary

$2-3 Million

80% Reduction

~1,000 Hours Saved