Acquired TPA moves from quarterly manual TPA invoicing to a monthly automated process with Consolidated Invoicing
How One Third Party Administrator Used TPA Stream’s Invoicing Software to Save Time and Improve Cash Flow
Nothing’s worse than having money tied up in unpaid invoices. When one TPA with a national presence realized it could improve its cash flow with a new invoicing system, it jumped at the chance. Using TPA Stream’s consolidated invoicing product, the TPA saved time and moved to a monthly cadence that improved cash flow.
The Problem
The TPA’s legacy invoice process was time-consuming, typically taking ten or more days to complete. This cumbersome system involved extensive manual work, including sifting through complex spreadsheets, managing ACH returns, verifying fees, and dispatching hundreds of individual emails requesting payment. The complexity of this process limited the company to a quarterly invoicing schedule, which resulted in an uneven distribution of revenue throughout the year.
A larger national TPA acquired the TPA, the team was asked to transition to a monthly invoicing cycle. However, the existing system couldn’t accommodate this new schedule. Recognizing the need for a more efficient solution, the company began looking for a solution. They came across Consolidated Invoicing from TPA Stream. This strategic move not only met the new monthly invoicing requirement but also streamlined operations, reducing processing time and freeing up valuable resources.
The Solution
Switching to TPA Stream’s Consolidated Invoicing solution allowed the company to automate this process, saving days of manual work and reducing errors.
This software integrates directly with the benefits administration system, in this case, WEX Health. It pulls all necessary accounts and data, applies any recurring or one-time fees, and generates detailed invoices to share in a secure white-labeled employer portal for prompt payment.
With this new system, the company no longer had a long checklist of manual invoicing items to complete. For example, they no longer needed to track who was renewing and if the renewal fee is applied on the invoice. Instead, TPA Stream he system takes care of all recurring fees.
The TPA Stream team made the transition smooth, establishing the integration, setting up fees and migrating them to the new invoicing solution in less than three months. Comparable programs can take eight to 12 months for complete implementation. In fact, the team said that this was the smoothest transition they’ve ever been through.
The Result
With the time saved, the company moved from a quarterly invoicing system to monthly invoices. Now, invoices go out around the fifth of each month, allowing the company to get its money faster and improve cash flow. The team clicks just a few buttons and the program runs invoices, creates NACHA files and integrates with QuickBooks for bookkeeping.
By the numbers: The TPA saves on average $5,600 per month, or $67,200 per year
Additionally, it’s so much easier to follow up on the accounts receivable side. Before, the company wasn’t able to import into QuickBooks. So, they’d have to go through all the deposits received and identify who hadn’t paid yet. From there, they’d run a report in QuickBooks to determine the accounts receivable. With TPA Stream, all that information is there with just a click of a button, and invoice balances are shown on the invoice to provide clear information to the client on outstanding balances.
Overall, moving to TPA Stream was a huge benefit for the business. It helped with accuracy and gain better traction with clients. Additionally, clients reported increased trust in the invoices produced from Consolidated Invoicing because there’s less human error involved. Additionally, their clients are happier because a monthly invoice schedule works better with their budgeting systems. Are you interested in exploring a program for your business? Learn more here or book a quick demo with our team.