The Challenge
This organization is one of the oldest and largest healthcare companies in the United States, serving more than half of U.S. hospitals and nearly a quarter of physicians. They are a global leader in healthcare supply chain management solutions, retail pharmacy, healthcare technology, community oncology and specialty care. One of their primary divisions focuses on the distribution of medical supplies, healthcare solutions, distribution services and clinical resources for healthcare providers.
With a growing customer base and the rising popularity of virtual, one-time-use credit cards, the accounts receivable (AR) team was struggling to keep up month-to-month. At the time, they had three full-time employees strictly handling around 2,500 virtual credit card payments monthly. The interchange fees attached with manually processing these payment types was also costing them over $6 million a year, and they needed a solution to help mitigate.
The Solution
In 2018, they partnered with Billtrust, using Billtrust Digital Lockbox and its virtual card capture technology. Billtrust Digital Lockbox automated the acceptance of electronic payments with remittance information automatically gathered, consolidated and delivered to users’ ERP systems. And through virtual card capture technology, Level II/III data is optimized, helping reduce spending. All of this allows their team to easily and efficiently handle the rising amount of monthly virtual credit card payments.
The Results
With Billtrust Digital Lockbox, this organization was able to save over $2.2 million in 2020 due to the interchange optimization of Level II/III data. Billtrust Digital Lockbox also helped them easily manage and process a virtual card volume of $219 million across 43,742 customer payments. And in Q1 of 2021, it processed $88 million across 16,770 customer payments. Finally, they were also able to reallocate several full time employees to other strategic projects within the business.
