NHS organisations should reconsider their financial processes, including the benefits of eInvoicing, following the Government’s recent comprehensive spending review. This is the advice from leading business applications and services provider, Advanced Business Solutions (Advanced).
The review confirmed Chancellor George Osborne’s plans to increase NHS funding by £8.4 billion by 2021 in addition to a £3.8 billion funding injection in 2016-17. Although a welcome boost, Clinical Commissioning Groups (CCGs) and NHS Trusts still face the daunting task of having to realise £22bn of efficiencies and become paperless by 2018.
Nick Wilson, Managing Director, Advanced Business Solutions (Public Sector and Enterprise division), says, "The NHS Supply Chain recorded savings of £15.6m in 2014 by moving to eInvoicing. However, this figure only scratches the surface of what could be achieved if the whole of the NHS and its 200,000 suppliers similarly made the switch.
"Across the EU, adoption has been more widespread within the public sector, in contrast to the UK which is currently lagging behind. However, as many cloud-based invoicing services are now free to access for suppliers, this arguably removes the biggest barrier to eInvoicing taking off."
Integrated eInvoicing solutions from approved NHS PEPPOL Proof of Technology vendors, such as Cloud Invoicing from Advanced, eliminate the need to manually handle paper. PDF invoices sent to a designated email address are detached via the hosted cloud service which extracts all of the invoice data. This data is then converted into an eInvoice which can be interpreted and validated within a finance system before processing payment.
By removing the burden of time-consuming administration for overstretched finance teams, operating costs are substantially reduced and process efficiency is transformed. In doing so, NHS organisations can improve relationships with their suppliers and negotiate early settlement discounts for prompt payment. Going paperless similarly improves an organisation's environmental credentials and helps to free-up vital space which can be better utilised.
Wilson comments, "As well as the enormous economic potential, eInvoicing also increases financial visibility and control - an area where the NHS has endured much criticism for some lax procurement procedures - as business rules can be embedded into the technology.
"Achieving transformational change remains a complex and unrelenting task. But the sooner NHS Trusts start the process of moving to eInvoicing, the sooner they can make inroads into unlocking the efficiencies they need to drive investment in other vital areas."
About Advanced Business Solutions
Advanced Business Solutions (Advanced) provides leading integrated business applications and services that enable public, private and third sector organisations to retain control, improve visibility and gain efficiencies whilst continually improving corporate performance. Advanced prides itself on getting close to its customers by understanding their businesses and responding to their evolving needs.
Advanced's software systems comprise core accounting/financial management, procurement, supply chain management, human resource and payroll systems, integrated with a range of collaborative, document management and business intelligence solutions to extend the value and effectiveness of the finance, human resource and payroll departments.
Management information systems for school and academies are provided through Advanced's subsidiaries, Advanced Learning and Compass Computer Consultants. Advanced also provides specialist vertical solutions for the not-for-profit and legal markets. All solutions can be delivered as a managed or bureau service.
Customers are from both the public and private sectors and include Companies House, Newcastle City Council, NHSScotland, Norfolk Constabulary, Edge Hill University, WH Smith, Royal Bank of Scotland, Aer Lingus, National Express Group, DFS and RSPB.
Advanced Business Solutions is a division of Advanced Computer Software Group Limited, a leading supplier of software and IT services to the health, care and business services sectors. In 2014, the Group won Tech Company of the Year in PwC’s UK Tech Awards. Advanced was also ranked in the Deloitte UK Fast 50, which recognises the 50 fastest growing technology companies in the UK and ranked in the top 300 technology companies in Deloitte’s EMEA rankings.