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Five Reasons Why Your Health System Should Apply Automation to its Cash Reconciliation Processes

September 23, 2021

There is no shortage of clinical, financial, and operational data readily available to health systems. When it comes to managing your health system’s cash reconciliation processes, leadership needs to be strategic about how data is used from both a systems and operational perspective. With a large volume of payments being deposited every day into your organization’s bank accounts, this process can quickly become overwhelming to manage. Here are five reasons why your health system should apply automation to its cash reconciliation processes through leveraging our SaaS cash reconciliation tool CAMS.

1. Automation of routine journal entries to your general ledger every month like ZBAs (zero balance accounts) to ensure accuracy and consistency with these entries.

2. Accelerate your payment posting through automation of 835 remittance matching. As you receive 835s from payers or clearinghouses, CAMS can automatically match these to payments you receive and push them out to your patient accounting system(s).

3. Real time awareness of any inconsistencies in your data. CAMS generates alerts when gaps are identified in your bank or lockbox data (for example), or if you receive poorly interpreted data from OCR (optical character recognition) processes. These critical data elements can be added to a work list where staff review and correction is required.

4. Provide assurance to your cash reconciliation processes through multi-source matching through auto reconciliation for 80+ percent of bank deposits (on average) through a multi-source matching engine reconciling 1) Bank to 2) General Ledger to 3) Patient Accounting System(s) to 4) 835 remittance files.

5. Daily bank file (BAI) feeds loaded to CAMS with files received from your banking partners. This provides real-time insight into your organization’s financial situation. Additionally, you will have more timely information on when you are getting paid, by whom, and what is included in each deposit.

Applying automation to your health system’s cash reconciliation processes can provide many operational and ultimately, financial benefits. By reducing the amount of repetitive tasks that your staff has to repeat on a daily, weekly, or monthly basis can allow them to focus their efforts on more pressing duties, as well as reduce unintended errors commonly associated with manual data entry. And from a financial perspective, incorporating more efficient processes through automation can reduce operating costs, as well as accelerate your organization’s ability to recognize revenue.