LocumsMart is always excited when we release new functionality that attacks a new area for saving our customers time and money. Some of those updates come from customer requests, and we always encourage our customers to chat with us and give us their feedback and suggestions about the site. Other updates are functionality that we’ve been planning on implementing for a long time, but needed to build foundational technology before we could.
The new Consolidated Billing feature in LocumsMart fits both of those categories. The benefits of this new functionality are probably obvious, especially to facilities and health systems with large amounts of locums needs. The higher the volume of needs, the higher the associated labor burden—on both the front and back ends of the process. We’ve been planning this development for a long time, and with ACH payments now available in LocumsMart, it’s a feature we are finally ready to release.
Reconciliation of locums invoices and payments is a difficult, laborious process for hospitals. Accounting departments at large healthcare systems have to gather and maintain paperwork to satisfy cumbersome government reporting requirements, track invoice audit trails, reconcile invoices and payments, etc. All of this has to be done for multiple Vendors at multiple Facilities, on a per Vendor and per Facility basis. It’s a massive amount of work, and it’s extremely difficult to manage large volumes efficiently—which ultimately increases the overhead costs associated with locums for both the HCO client and the Vendor (i.e. increased labor costs and lower efficiency translates into slower payments to Vendors).
Consolidated Billing solves problems for LocumsMart Members on the Vendor and HCO sides of the equation by eliminating thousands of hours of labor via process automation. Individual invoices (from individual Vendors with Providers working locums Assignments at Facilities throughout a health system) will all go through the approval process individually, like normal. It is only after the approval of an individual invoice that the new Consolidated Billing functionality kicks in.
Once an invoice is approved at the Facility level, it is then put into a “Pending Consolidation” bucket, which can be monitored in real time in LocumsMart. HCOs can determine the frequency that they wish to receive Consolidated Invoices from LocumsMart. At that point, all invoices in the Pending Consolidation status will be batched together by LocumsMart into a single Consolidated Invoice, which is sent to the HCO for payment via LocumsMart’s ACH payment transfer functionality. LocumsMart’s software then takes the single ACH payment from the HCO and automatically splits it out into the appropriate amounts for each Vendor that had at least one individual invoice included as a line item on the Consolidated Invoice. It then pushes the proper payment to the Vendor’s designated bank account via ACH. All of this happens automatically, at no additional charge from LocumsMart.
For our HCO Memebers, Consolidated Billing is going to save an awful lot of labor. They’re only going to have one invoice to deal with, and one workflow path. No one has to cut a check—just view invoice and payment reports in LocumsMart. For our Vendor Members, Consolidated Billing means they’re going to get paid faster. In the locum tenens industry, where the Vendors have to pay the Providers up front before they get paid by the hospital, cash flow is everything. Anything we can do to cut down on the average AR Days Outstanding for our Members is something LocumsMart wants to help do.
Contact LocumsMart today for a walk-through of how to put this functionality to use!