Industry:
Healthcare
Learn about RadNet’s journey as they transitioned from a highly manual, labor-intensive AP department to an automated strategic profit center.
RadNet,a leading provider of radiology outsourcing services, operates 400 imaging centers across the United States and is expanding internationally. The company is renowned for its strategic focus on digital transformation and acquisitions in the radiology sector.
Key takeaways
77%
of invoices processed via SmartPDF instead of OCR
75%
of non-PO invoices processed using SmartCoding, requiring no AP intervention
85%
touchless invoice processing rate for PO invoices
RadNet's Challenges
The company initiated a digital transformation for its Accounts Payable department with the goal of reducing dependence on OCR and streamlining manual invoice processing.
RadNet experienced common drawbacks to OCR technology, including accuracy issues, especially with poor-quality images or handwritten documents, potential challenges in preserving original formatting, language limitations, sensitivity to image quality, and, at times, slower processing speed compared to manual data entry.
Due to the fact that only 40% of RadNet’s invoices were based on Purchase Orders, a significant portion of the invoices needed extensive manual processing.
This strategic initiative is particularly crucial as RadNet actively pursues a mergers and acquisitions strategy, requiring a consistent and efficient onboarding process for new facilities.
SmartPDF – state-of-the-art AI technology for invoices
The labor-intensive invoice process took a significant amount of time and caused a high level of data accuracy issues. To cope with manual processing, RadNet had to continually increase its AP staff as the company grew.
“SmartPDF, in my opinion, is a really good piece of technology. Even at line level reconciliation, the small quantity of errors that we find compared to the volume of invoices is impressive!” Jacob Simon, National Director of Purchasing, RadNet.
In collaboration with RadNet’s Partner Extropy, they implemented Basware’s SmartPDF technology, achieving a 100% accuracy rate on invoices processed within the system. They can now generate higher-quality data and facilitate a more streamlined and automated workflow.
Using SmartPDF means there is less configuration than creating a direct connection with the vendor while at the same time increasing matching accuracy.
Jacob Simon, National Director of Purchasing, RadNet
Results
Elevating Accounts to a strategic profit center
As a result of the Basware solution, RadNet has now established a significantly improved workflow throughout the company. The department engages more frequently with internal customers and vendors, adopting a more proactive approach that creates a more engaging role for the department.
Empowered by data, the department can make more informed decisions. This new role has also enabled the department to explore ways to support other functions, such as procurement, aiming to identify opportunities for cost savings and position the AP department as a profit center.
With Basware, we’ve been able to create a more effective workflow throughout the company. The match rate has helped us automate 85% of our invoices. We’ve gone from 20- day invoice processing to 80% of invoices in the system for less than 5 days.Jacob Simon, National Director of Purchasing, RadNet
SmartPDF has played a crucial role in RadNet’s transition from a manually operated AP department to a highly automated system. Currently, 85% of PO invoices are processed without manual intervention, and the payment cycle for invoices has been reduced to less than 5 days. The use of SmartCoding ensures a hands-free process with no need for AP involvement for 75% of the non-PO invoices.
The time-saving advantages provided by the Basware solution have eliminated the need to expand the AP staff as the company grows. Instead, current employees now enjoy more rewarding roles, contributing strategically to a profit-generating department.
With SmartPDF’s intelligent algorithms continuously learning from user feedback and enhancing recognition and extraction capabilities, RadNet’s AP department is poised to reach new heights in terms of results and efficiency.