Streamlining the accounts payable function with EDI

Healthc Financ Manage. 1997 Jan;51(1):64, 66-7.

Abstract

Kaiser Permanente of Southern California is expanding its use of EDI as a way to enhance the efficiency of its procurement effort and reduce administrative costs. Based on the results of surveys of key suppliers, Kaiser executives identified four EDI-based process improvements: 1) using the X12 832 standard to reconcile contracting data, which can eliminate up to 33 percent of mismatches among purchase orders, invoices, and receiving documents; 2) using procurement cards for many purchases, which can eliminate 20 percent of all invoices and related check payments; 3) using the X12 810 standard to obtain electronic invoices from Kaiser's largest suppliers; and 4) implementing the X12 820 standard, which lowers both supplier and claims payment costs.

MeSH terms

  • Accounts Payable and Receivable*
  • California
  • Data Collection
  • Delivery of Health Care, Integrated / economics*
  • Electronic Data Processing*
  • Forms and Records Control
  • Health Maintenance Organizations / economics
  • Management Information Systems*