Owning Automation Outcomes in Healthcare Supply Chain: 90%+ Straight-Through Processing and $150K Annual Recurring Savings

Our Client

The client is a world-class healthcare organization in the southeastern United States, processing over 70K invoices monthly, operating in 11+ locations with over 4,500 physicians. Serving approximately 1.8 million patients annually, the institution delivers comprehensive medical, surgical, and specialty services including cancer care, neuroscience, cardiovascular care, and orthopedics.

With large-scale vendor ecosystems supporting clinical and non-clinical operations, supply chain efficiency is critical to maintaining service excellence and cost control.

Market Trends: AI and Supply Chain Management

Healthcare supply chains are increasingly looking to generative and agentic AI to improve forecasting, planning, and execution through predictive intelligence. Leaders are investing in automation to drive resilience, cost efficiency, and agility across vendor ecosystems. However, advanced AI capabilities cannot deliver value without stable foundational processes.

Core workflows such as invoice processing and vendor inquiry management must first be standardized and automated. For organizations operating at scale, inefficiencies at this foundational level can quickly offset the benefits of broader AI ambitions.

Key Challenges

As invoice volumes increased and vendor complexity grew, the organization’s bespoke Intelligent Document Processing (IDP) solution began to show structural limitations.

Key challenges included:

• ML performance degradation

Over time, model accuracy dropped below acceptable thresholds, requiring frequent manual correction and re-training.

• Rising offshore dependency and costs

Declining automation rates increased reliance on offshore resources to review and correct invoices, driving avoidable operating expense.

• Growing manual workload for finance teams

Supply chain and finance staff were increasingly diverted to invoice exception handling instead of higher-value activities.

The organization needed a scalable automation foundation that could sustain vendor growth without increasing headcount or cost.

LTM’s Solution

LTM applied a structured, AI-first business process transformation approach to stabilize and scale invoice automation.

Key solution components included:

• End-to-end process documentation

Documented current-state and future-state processes to align stakeholders, remove bottlenecks, and establish governance clarity.

• Fit-for-purpose technology selection

Transitioned from a bespoke IDP solution to a best-in-class automation platform purpose-built for end-to-end document workflow processing.

• Phased, complexity-led vendor migration

Prioritized 1,800+ vendors based on volume and complexity, starting with the highest-impact segments to build early trust and measurable results.

• Agile, sprint-based execution model

Delivered accelerated onboarding in structured waves, moving from 600 high-volume vendors to larger migration batches for rapid scale.

• Embedded change management and enablement

Delivered super-user and end-user training programs to drive adoption, reduce post-go-live friction, and ensure workforce readiness.

Business Benefits

The transformation delivered measurable financial and operational impact while strengthening workforce productivity and automation stability.

• Sustained high straight-through processing

Achieved and stabilized over 90% invoice straight-through processing, improving automation rates by 40% compared to the legacy solution.

• Reduced operating costs and technical overhead

Delivered $150K in annual recurring savings by eliminating offshore dependency, reducing technical debt, and optimizing licensing costs.

• Lower manual intervention and improved workforce efficiency

Significantly reduced invoice exception handling, enabling supply chain and finance teams to focus on higher-value activities.

Client Testimonial

"Following LTM’s comprehensive review of our processing requirements, and the UiPath IXP Document understanding platform, their delivery team designed a seamless, fully automated workflow to achieve an ambitious industry benchmark of over 90% invoice processing efficiency. They developed a roadmap that strategically balanced workflow complexity and project urgency to align with our objectives. After six months, we successfully transitioned more than 50% of our highest-volume and most complex invoice types, consistently surpassing our target with a month-on-month average invoice processing rate of 95%. The net result of this project is expected save an estimated $150,000 per year in recurring licensing, technical debt, and offshore operating costs."

- Juan Serrato

AVP Leading US Healthcare Provider

Conclusion

Through a structured, process-led modernization of invoice workflows, LTM helped the organization exceed its automation expectations while reducing cost and operational friction.

The healthcare provider now operates on a scalable automation foundation capable of supporting vendor growth, strengthening supply chain efficiency, and enabling finance teams to focus on strategic priorities rather than manual exception handling.

LTM Leader Quote

"At LTM, we are committed to meeting our customer’s objectives. Our services and solutions are crafted keeping the customer’s specific goals in mind and utilizing our industry leading solution structure. The combination provides the unique solutions at scale and with efficiency for our clients."

- Michael DeCamp

Associate Director, Program Management