Healthcare organizations are still writing paper checks to vendors. That's costing more than the stamp.

Healthcare organizations are still writing paper checks to vendors. That's costing more than the stamp.

Accounts payable automation is one of those operational improvements that sounds incremental but has compounding financial impact.

Most healthcare organizations have modernized their clinical and revenue cycle technology significantly over the past decade. Many of those same organizations are still processing vendor payments manually — paper checks, labor-intensive workflows, and none of the rebate revenue that comes from virtual card programs.

Here's what that's actually costing:

Processing costs for paper checks average $4–6 per transaction. Virtual card or ACH processing costs a fraction of that. For a health system processing thousands of vendor payments monthly, the difference is material.

More importantly: virtual card programs generate rebates — typically 1–1.5% of transaction volume. For a large health system, that's a meaningful revenue stream that currently goes uncaptured.

MDR's healthcare payment automation platform has delivered documented results. One North Carolina health system increased vendor enrollment 16x and began collecting over $1M in annual rebates — with an implementation that required only 10 hours from AP and IT teams.

For CFOs and finance leaders: what percentage of your vendor payments are currently processed electronically? And what's the cost per transaction for the ones that aren't?

The gap between your current state and best practice is usually larger — and more valuable — than it appears.