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Cost Savings and Efficiency in Hospital and Healthcare Vehicle Programs

Headshot of a man with a blurred background By Ben Reiland October 3, 2019

Categories: Industry Trends Mobile Workforce Technology Vehicle Reimbursement

Unexplored Options for Cost Savings and Efficiencies in Hospital and Healthcare Vehicle Programs

Hospitals and Healthcare companies across the country perform miracles every day. That extends beyond patient care to the organization and management of the system itself. With multiple departments and massive overhead, a lot of work goes into maintaining a balanced budget. An opportunity for cost savings is generally worth consideration. And if that cost savings is paired with a streamlined process, resulting in quicker results without additional work? Well that’s a must have. It’s hard to find both of those things in most hospital and healthcare vehicle programs.

Mileage Reimbursement: Too Much?

Most organizations in the hospitals and healthcare industry use a mileage reimbursement vehicle program, also referred to as a cents-per-mile (CPM). And it makes sense. Traveling physicians and healthcare workers have different travel mileages than, say sales executives and service members. CPM is a flexible option, offering reimbursements for both high and low mileage drivers. Unfortunately, the type of mileage reimbursement used is less than effective for reimbursing without overspending. In fact, a billion-dollar health system will typically report four to five times more personal mileage than a billion-dollar Fortune 500 company. Why is that? Well, mileage reimbursement problems are as widespread as the program itself.

Problem? Manual Mileage Logs

Manual mileage logs are rarely an accurate record of trip lengths, but more of an approximation. For example, a 3.8 mile trip becomes a 4 mile trip. That may not seem like much. Remember the reported mileage statistic above? It adds up. Not only does that increase the number of miles a company reimburses, it also increases the time employees spend on administrative work. There’s also additional room for error as many manual mileage logs are found to be out of IRS compliance.

Solution? Automated Mileage Capture

With automated mileage capture, trips are automatically captured by the Motus App in IRS compliant logs. That means no more mileage fraud, less time given over to administrative tasks and audit-proof mileage logs.

Problem? Inaccurate Reimbursement

Most companies offering a mileage reimbursement use the IRS mileage rate. Which is a great way to overspend on your vehicle program. Conversely, some companies offer their drivers a rate that doesn’t even cover the cost of their business travel expenses. This can leave your company exposed to labor law violation and subsequent lawsuit.

Solution? Flexible Reimbursement

Every driver is different. From the region they work in, to the miles they drive from month to month. Reimbursing everyone the same amount is a great way to pick winners and losers. With the right mileage reimbursement program, the company can customize reimbursements. The rate could even be based on insights from a previous trip. Given the proper tools, your company can offer a flexible reimbursement that best fits both your drivers and your company needs.

Technology is the Solution

Hospitals and healthcare companies stand to lower expenses and man-hour spend in their mileage reimbursement. The solution is technology. The shift from mileage logs to automated capture has helped out multiple other industries, from home healthcare to pharmaceuticals and medical devices. Curious to know more? Check out our Hospitals and Healthcare resources.

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