CPS Case Study – Virginia Mason Memorial Hospital

CPS PAYMENT SERVICES HELPS VIRGINIA MASON MEMORIAL HOSPITAL INCREASE BACK OFFICE EFFICIENCIES AND VENDOR PARTICIPATION

BACKGROUND

Virginia Mason Memorial Hospital is a 226-bed, acute-care, non-profit, community hospital serving Central Washington’s Yakima Valley. Senior Operations Manager, Evan Casteel, began looking for ways to bring efficiency and best practices to the supply chain function and was mindful of the facility CFO’s interest in developing new  revenue streams.


“Our accounts payable process was still very paper based, and we only had a couple credit cards to use for payments, which could make things somewhat difficult and inefficient,” Casteel said. “Given the potential benefits of implementing an automated system, we decided it was worth exploring further.”

SOLUTION

The CPS payment portal integrated seamlessly with their ERP system, enabling VMMH to automate the payment process tomany of their vendors.

Payment files are uploaded directly into the payment portal,invoices are reviewed and approved, and a single-use virtual

 

 

MasterCard® number is generated and then sent to the vendor for each payment. Since the system integrates with the existing ERP system, tracking and account reconciliation falls right into place.

“We were looking for the best way to enhance internal controls and reduce our office costs, check printing and mailing inefficiencies,” said Casteel. “We were also looking for ease of implementation on a highly secure platform.

RESULTS

The CPS team used the organization’s accounts payable reports to get them set up with vendors. The customer service and on-boarding from CPS were another very pleasant aspect of the engagement, noted Casteel. “They searched and connected the vendors for us,” he said, noting that they were currently processing about 60% of payments through CPS and were
continually working to add more.

“Given the potential benefits of implementing an automated system, we decided it was worth exploring further.”
- Evan Casteel, Senior Operations Manager, VMMH
“In addition to the savings and efficiencies realized, the facility is receiving $13k-$14k per month in rebates and hopes to reach up to $300k in rebates annually as vendors continue to be added.”
- Evan Casteel, Senior Operations Manager, VMMH
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