Accounts payable audit for healthcare
Healthcare providers pay a very large number of vendors for a very wide range of goods. Supplies arrive daily, credits follow recalls and returns, and invoices land at many sites. This page explains how an accounts payable audit applies to a hospital, clinic group or health system, and what a partner firm would look at. It sits within our healthcare coverage.
Why accounts payable matters in healthcare
A health system rarely buys from one place. Medical and surgical supplies, pharmacy products, implants, lab consumables, food service, linen and equipment service all run through payables. Each vendor has its own invoice format, its own credit practices and its own idea of what a return is.
That mix creates openings for error. A supply item can be billed at a list price when a contract price applies. A return can be shipped back without the credit ever reaching your account. A recall can lead to returned product and credits that someone has to track.
What a review typically examines
A partner firm looks at your payment history for each vendor and compares it with the contract, the purchase order and the receiving record. Matching an invoice to the order and the receipt is a standard payables control. For a provider, several checks stand out.
- Contract price against invoice price. If a group purchasing agreement sets prices, the review checks whether invoices follow the agreed price tier or whether a higher price slipped in.
- Credits and returns. Recalls, expired product, wrong-item returns and restocking charges all produce credit memos. The review looks for credits that were promised but not applied.
- Duplicate invoices across facilities. When several hospitals or clinics share a vendor, the same invoice can be entered under a different location code or remit-to address.
- Usage-based billing. Implants and consigned items are often billed when used. The review compares the vendor's bill with the case records that show what was actually used.
- Vendor master records. Multiple records for one vendor, or physician practice vendors with overlapping details, make duplicate payments harder to spot.
Note: Pricing arrangements and rebate terms differ between providers and vendors. Under a federal safe harbor, a group purchasing organization that is paid fees by vendors needs a written agreement with each buyer, so ask for yours. A partner firm reads your own agreements before drawing any conclusion. [CONFIRM: a partner firm supplies and approves this statement]
What to have ready
- The vendor contract, price schedules and any amendments.
- Any group purchasing agreement or tier documentation that governs pricing.
- A detailed payment history for each vendor in scope.
- Invoices chosen for review, with receiving records and purchase orders.
- Credit memos, return authorizations and recall notices.
- A list of issues your team has already noticed.
- Contact details for your purchasing, receiving and payables staff, and for vendor teams.
What happens after you submit a request
You choose a request path and complete the matching form. The request goes to a partner firm in our network, or to Fairview for manual matching if you are unsure which path fits. The firm contacts you directly. You share documents, the firm reports its findings, and you stay involved in how any corrections are raised with vendors. Fees and terms are between you and the firm. Fairview is paid a referral fee by partner firms.
How matching works
Fairview connects you with a partner firm. It does not perform the review itself. Business size decides which type of firm fits, and Fairview matches each request by hand rather than by a fixed cut-off. If your organization is larger, use the larger business form. If it is smaller, use the smaller business form. If you are unsure, use the other form.
An independent partner firm that specializes in accounts payable audit handles this work. Fairview Audit makes the match. We do not perform the review ourselves.Who does the work
Frequently asked questions
Does a review cover pharmacy purchases?
It can, if those purchases run through your payables and the vendor agreements are available. Scope is agreed with the partner firm. [CONFIRM: partner industry detail]
Do we need to stop paying vendors during a review?
No. Normal payment continues. The review looks back at what was paid.
Who raises an issue with a vendor?
You agree the approach with the partner firm. Your team stays involved, which helps protect the relationship with the vendor.
Related pages
Tell us what you need reviewed. We match you by hand with an independent partner firm. You keep your existing vendors.Find out what you are overpaying.