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Healthcare Provider Saves With E-Invoicing

Electronic invoices are saving Memorial Hermann Healthcare System millions of dollars.
The e-voicing and e-payment also allows Memorial Hermann to better manage and anticipate cash flow. Staff, including those in clinical departments that in the past were involved with shuffling paper invoices, "has more time to focus on healthcare," said Sands.

Currently, Memorial Hermann is targeting to get four key vendors who account for 50% of invoice volume using the system, said Whisman. Getting some vendors to transition to e-invoicing is a harder sell than it is for others, he said. He estimates that when suppliers are requested to make the transition, about 70% are willing; 20% need more education about how and why; and "10% are hard-headed," about making the change.

As a result, Memorial Hermann made some changes of its own with suppliers, but won't disclose how many were dropped.

OB10 manages the outreach and enrollment of suppliers into the network. First, the customer identifies its targeted suppliers; OB10 then distributes a letter from the customer, contacts each supplier and enrolls them into the network.

OB10's network also includes 70,000 suppliers that have already signed up for the e-invoicing services. The services can connect to suppliers and buyers accounting system.

For Memorial Hermann, this means invoicing information is electronically sent by OB10 to Memorial Herman's Lawson ERP system, said Whisman. Prior to the e-invoicing data being sent to Memorial Hermann's system, OB10 validates invoice's purchase order numbers and pricing for accuracy.

Suppliers with high invoice volumes of 100 or more per month send the bills electronically from their accounting systems to OB10. Smaller volume suppliers can enter the data online into "WebForm" via OB10 portal. Also OB10 said its "Any to Any Data Formatting" allow suppliers to connect to OB10's system without making modifications to their own internal systems.

In addition to the healthcare sector, OB10 provides its e-invoicing services to customers in the manufacturing, pharmaceutical, food and apparel industries. OB10's e-invoicing services subscription pricing is based on volume and number of suppliers, said Ernie Martin, OB10 marketing manager for North America.


Blue Cross of Northeast Pennsylvania, the University of Louisville School of Medicine, and a range of large and small healthcare providers are using mobile apps to improve care and help patients manage their health. Find out how. Download the report here (registration required).