Key takeaways:
Aligning payments to suppliers with reimbursements from payers is critical for healthcare organizations striving to optimize cash flow and increase working capital.
AleraCare leveraged Premier’s Remitra® Managed Accounts Payable (AP) solution to extend payment terms, increase working capital and obtain better cash flow management.
Discover how Premier’s Remitra® Managed AP solution helped AleraCare improve access to care, labor efficiencies, operating margins and increase working capital.
AleraCare, a leading healthcare organization, specializes in providing patients with specialty pharmacy services, home infusion services and compounded medications. Additionally, they offer ambulatory infusion centers (AIC) that provide patients with intravenous treatments for cancer, autoimmune disorders and other chronic diseases.
AICs are good alternatives to traditional in-hospital settings and can offer comfort and convenience to patients and their caregivers while being cost effective for commercial and government payers.
Despite their cost effectiveness and convenience, AICs can face financing hurdles to ensure their much-needed therapies reach patients. Infusion medications can be expensive with lengthy reimbursement time frames that are dependent on patients’ private health plans, Medicare, or Medicaid coverage terms. With slow reimbursement coupled with costly medications, AICs often need to collaborate with multiple pharmacy distribution groups and obtain credit to ensure they can have medications on hand when patients need them, making extended payment terms a necessity.
Recognizing these challenges, AleraCare embarked on a transformative journey in collaboration with Premier, leveraging the Remitra® Managed Accounts Payable solution.
During a recent webinar, AleraCare’s Chief Financial Officer, Tom Pascoe, shared how this partnership empowered them to overcome thin operating margins and drive operational excellence.
Here’s how AleraCare utilized Premier’s Remitra® Managed AP solution to achieve several key objectives:
Reduce labor costs. AleraCare leveraged the Remitra® Managed AP solution to reduce the need for a full-time employee. Through automation, they were able to ease the burden on their existing accounting team as well.
Extend credit for medication and supply purchases. AleraCare relied on Remitra® to extend the credit they needed and to pay distributors on their behalf so they could maintain access to critical medications and supplies.
