The Strategy of Liquidity: From Treasury Silos to Industry Levers in Healthcare
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Key Takeaways
⇨ Healthcare organizations face financial challenges due to siloed treasury systems that limit cash visibility and liquidity management, hindering strategic decision-making.
⇨ Kyriba's integration with SAP S/4HANA provides healthcare CFOs with tools for real-time visibility, optimizing cash use, and enabling precise liquidity forecasting to align with organizational goals.
⇨ Automated liquidity intelligence helps finance leaders navigate complex funding cycles and reimbursement delays, ultimately improving financial performance and patient care delivery.
In the healthcare industry, financial agility is critical. Yet, many healthcare organizations operate with siloed treasury systems that limit visibility into cash positions and liquidity risks globally. Hospitals, healthcare organizations, and specialty healthcare providers alike can use liquidity as a lever to drive strategic performance and better patient care delivery.
CFOs and treasury leaders in healthcare driving financial performance operate in environments that are complex and constantly evolving. Funding cycles are complicated, reimbursements are frequently delayed, there are intense capital requirements, and the industry has widespread M&A activity. It’s an environment in which visibility across the end-to-end network of facilities and providers delivering care can be challenging. This fragmentation can hinder strategic decision-making and expose healthcare organizations to unnecessary financial strain rather than pinpointing opportunities to accelerate it.
To use liquidity and cash management as a strategic lever, CFOs and financial leaders in healthcare must be able to rapidly align with organizational financial goals:
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- Precisely forecast liquidity needs using consolidated data of cash, liquidity, and reimbursements across different systems.
- Optimize cash use across hospitals, clinics and service lines.
- Navigate foreign exchange and interest rate risks associated with capital projects.
Kyriba is a trusted partner helping to empower many healthcare finance leaders. The SAP-certified integration with Kyriba’s Active Liquidity Network ensures secure, scalable reliability between SAP S/4HANA (SAP ECC 6.0) and Kyriba’s liquidity performance platform. These solutions are enabling healthcare financial leaders to seamlessly access real-time visibility into cash, liquidity, and working capital across entities and geographies. Kyriba’s SAP integration supports four key workflows:
Payments
Inefficient and manual payment processes, causing a lack of visibility into liquidity challenge many healthcare organizations. Kyriba provides strategic insights to overcome these challenges, enabling treasury teams to manage cash and payments more effectively.
Cash Forecasts
Enhanced integration through the Kyriba platform improves accuracy and visibility into current cash levels and future liquidity needs via accurate cash forecasts.
Foreign Exchange Exposure
With many healthcare organizations operating across many geographies and currencies, Kyriba helps companies proactively manage and reduce foreign exchange risk by pinpointing and quantifying exposures in real-time, ensuring adverse currency fluctuations do not impact financial performance.
Working Capital & Supply Chain
In an uncertain economic landscape, healthcare organizations can leverage Kyriba’s working capital solution to optimize payables and receivables management to improve cash conversion, drive free cash flow, and master supply chain risk.
Kyriba’s liquidity automation and intelligence integrated with SAP delivers powerful tools healthcare CFOs and financial leaders can use to break down treasury silos. When implemented, Kyriba healthcare customers saw on average a 51% reduction in idle cash balances and saved 76 hours per month on daily cash positioning. With such gained value, liquidity can be transformed from a metric they react to into a lever they use to proactively fuel performance and growth.
What This Means for SAPinsiders in Healthcare
- CFOs using SAP S/4HANA or ECC can leverage Kyriba’s certified integration to unify fragmented treasury systems, gain real-time visibility into global cash, liquidity, and working capital.
- Finance leaders can optimize cash use, reduce idle balances, and align liquidity with broader organization goals embedding Kyriba tools into SAP S/4HANA workflows – payments, cash forecasting, FX exposure, and working capital.
- Finance leaders can navigate complex funding cycles and reimbursement delays by automating liquidity intelligence to improve forecast accuracy supporting stronger financial decisions and patient care delivery outcomes.
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