In healthcare, every second counts — and not just in the exam room. Behind the scenes, healthcare practices handle everything from sourcing PPE to paying for office equipment. The supply chain is the backbone of any clinic, dental office, or practice. But when it comes to paying suppliers, there’s often a faster, easier way to get it done.

Healthcare service providers face a number of challenges when it comes to managing outgoing payments, including the following common pain points:

“Juggling dozens of suppliers with different payment terms”
“Errors and delays from manual processes”
“Rising fraud risks and compliance pressure”
“Time lost to data entry and invoice matching”
“Shrinking budgets and staff resources”

That’s where virtual cards come in. By offering faster, more secure, and more trackable payment methods, virtual cards are helping healthcare providers simplify their accounts payable (AP) process while improving supplier relationships in the process. When paired with AP automation, they help reduce the workload for finance teams and improve consistency across payments.

The growing pressure on healthcare payables

The U.S. healthcare industry is growing fast, with projected 7% annual growth expected to push it to nearly $1 trillion by 2028, according to McKinsey. Non-hospital practices and healthcare service technology (HST) are among the fastest-growing sectors, with HST alone projected to grow by 9% annually.

This expansion puts pressure on operations like AP to scale up as well. But while the focus is often on patient care, back-office improvements often lag behind. As a result, AP departments in healthcare facilities are sometimes left managing outdated processes, like writing paper checks, or using manual systems that are slow, error-prone, and vulnerable to fraud.

Virtual cards are quickly gaining ground as a practical solution to these challenges. They give healthcare practices a faster, more secure way to pay suppliers while reducing administrative strain and risk. Let’s take a closer look at why this shift is happening, and why both providers and suppliers are seeing it as a win-win.

Simplifying complex supplier payments

Healthcare practices typically work with dozens – sometimes hundreds – of suppliers, ranging from janitorial service providers to medical equipment manufacturers. These suppliers often operate on short fulfillment timelines and expect prompt, reliable payments to keep things moving.

Manual check runs and paper-based systems simply can’t keep up with this pace. Delays in payment can stall deliveries, strain relationships, and in some cases, impact patient care. With virtual cards, payments are issued quickly upon invoice approval. Suppliers receive their funds faster, which in turn supports timely delivery of essential supplies and services.

Faster payments also help reduce the overall cycle time in the AP process, which can free up time for finance staff to focus on higher-priority tasks rather than chasing down invoices or mailing checks.

Supporting compliance without the extra burden

Healthcare providers are no strangers to compliance. From HIPAA to PCI requirements, maintaining security and privacy, especially in financial transactions, is not optional.

Traditional payment methods, like checks or even ACH, leave room for data exposure. Lost checks, incorrect routing details, or limited transaction tracking can make it harder to ensure proper controls are in place.

Virtual cards offer a more secure alternative. Each card is generated for a specific transaction, with set limits and expiration dates. This makes it easier to track payments, control spend, and maintain a clear audit trail — all of which support compliance without adding new layers of work.

For finance teams, this means greater visibility and fewer worries about whether they’re meeting healthcare’s strict security standards. And for suppliers, it offers the confidence that their payments are being handled in a secure and efficient way.

Reducing fraud risk and human error

The sensitive nature of healthcare data, and the growing sophistication of cybercriminals, means the industry faces higher fraud risks than most. Financial transactions are often targeted, and even simple human errors can have significant consequences. Cyber attacks are a growing threat across all industries worldwide, with the annual average cost of cybercrime projected to exceed $23 trillion by 2027 (nearly triple the cost in 2022) according to Anne Neuberger, the U.S. Deputy National Security Advisor for Cyber and Emerging Technologies.

By replacing checks and manual data entry with virtual cards and an automated AP workflow, healthcare providers can reduce both types of risk. Virtual cards minimize fraud exposure because they’re single-use or vendor-specific, and can’t be reused if compromised.

In addition, automation helps cut down on manual steps like invoice matching, data entry, or reconciling payment records, reducing the likelihood of accounting mistakes.

A better experience for suppliers

While providers benefit from more efficient and secure payments, suppliers also stand to gain. Virtual card payments are faster than checks, and vendors don’t have to wait days, or even weeks, for funds to clear. With quicker access to capital, they can operate more smoothly and serve healthcare clients with fewer interruptions.

That speed and predictability can also lead to stronger vendor relationships. When suppliers know they’ll be paid on time and securely, they’re more likely to prioritize the provider’s orders and maintain favorable terms.

The bottom line is…

In a field where care and precision are non-negotiable, it makes sense to bring the same approach to financial operations. Virtual cards offer a practical way for healthcare providers to pay suppliers faster, help reduce risk, and support compliance all while strengthening vendor relationships.

It’s not about overhauling systems overnight. It’s about moving toward payment methods that are better suited for the realities of modern healthcare. As more providers make the shift, it’s becoming clear that faster, smarter payments aren’t just a nice-to-have, they’re a competitive edge.

For more insights and updates on corporate payments, check out:

• Your guide to virtual card rebates
• 2025 payment trends
• Accounts payables: Terms you need to know

The information in this blog post is for educational purposes only. It is not legal, tax or investment advice. For legal, tax or investment advice, you should consult your own legal counsel, tax, and investment advisers.