MedAssets Enters into Strategic Partnership with Ariba
Collaboration to Offer Increased Healthcare Supply Chain Efficiency from Requisition through Payment
ATLANTA--(BUSINESS WIRE)-- MedAssets, Inc. (NAS: MDAS) today announced a multi-year strategic partnership with Ariba, an SAP company, that significantly expands MedAssets industry-leading supply chain management and outsourced procurement capabilities. The partnership offers healthcare providers and suppliers the industry's most comprehensive electronic commerce platform, including requisition to purchase order (PO) transmission, shipment notification, invoice transmission and reconciliation workflow automation, expense posting, supplier payment and early-pay discount solutions.
Through this partnership, healthcare providers will be able to conduct fully automated e-commerce with the nearly one million companies connected to the Ariba® Network through the MedAssets eCommerce Exchange. The combination of MedAssets' technology-enabled services with Ariba's cloud-based applications and business network will deliver unparalleled cost management and healthcare provider-supplier collaboration opportunities. Providers, for instance, will be able to eliminate up to 100 percent of paper invoices received from suppliers using Ariba's "smart invoicing" applications, which automatically validate supplier-initiated electronic invoices through a provider-managed rules engine and post them directly to their accounting system for true "touchless" processing.
"This strategic partnership creates a total transaction management solution for healthcare organizations. We will use the strength of the nation's largest shared services procurement organization, with over $5 billion being transacted annually through our National Procurement Center, in combination with our world-class analytics and invaluable insights, to accelerate much needed savings initiatives for healthcare providers," said John Bardis, MedAssets chairman, president and chief executive officer.
"Ariba's solutions are natural extensions of MedAssets spend management and outsourcing capabilities. Our experience and analysis have found that healthcare providers' accuracy of contract pricing and terms increases significantly, and their contract compliance can triple to more than 90%, when procurement is managed through a single solution platform," Bardis continued. "We look forward to leveraging this partnership to deliver innovative procurement and accounts payable solutions that will minimize back-office administrative expenses, thereby affording healthcare providers the opportunity to reinvest such funds in direct patient care delivery."
Using Ariba's cloud-based applications and business network, MedAssets can enhance and expand its capabilities and create even greater value for healthcare providers, including:
- Contract compliance enhancement;
- Operational cost reductions through automated invoice matching and validation;
- Improved contract price accuracy; and
- Opportunities for providers and suppliers to collaborate to achieve early pay discounts.
In addition, capturing all supplier invoice data electronically for both PO and non-PO based transactions will accelerate a provider's ability to identify and execute upon cost reduction opportunities for all non-labor spend, including purchased services, a growing area of focus in all healthcare organizations.
"In today's healthcare environment, providers face a number of significant challenges: rising costs, limited resources and rapidly evolving market conditions," said Bob Calderoni, chairman and chief executive officer, Ariba. "MedAssets has taken the lead in embracing innovative, technology-based solutions to eliminate these barriers by improving the efficiency of the healthcare supply chain, and we are pleased to be partnering with them on this mission."
About Ariba, an SAP Company
Ariba is the world's business commerce network. Ariba combines industry-leading cloud-based applications with the world's largest web-based trading community to help companies discover and collaborate with a global network of partners. Using the Ariba® Network, businesses of all sizes can connect to their trading partners anywhere, at any time from any application or device to buy, sell and manage their cash more efficiently and effectively than ever before. Companies around the world use the AribaNetwork to simplify inter-enterprise commerce and enhance the results that they deliver. Join them at: www.ariba.com
As market leader in enterprise application software, SAP (NYS: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device - SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 232,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.
MedAssets (NAS: MDAS) partners with healthcare providers to improve their financial strength by implementing revenue cycle, spend and clinical resource management solutions that help capture revenue, control cost, improve margins and cash flow, increase regulatory compliance, and optimize operational efficiency. MedAssets serves more than 4,200 hospitals and 122,000 non-acute healthcare providers. The company currently manages more than $50 billion in supply spend and touches over $365 billion in gross patient revenue annually through its revenue cycle solutions. For more information, go to www.medassets.com.
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