Case Study: a multistate healthcare system recovers $3.8 million in sales tax refunds with BDO

Healthcare System recovers $3.8 million in sales tax refunds with BDO

The vendor BDO assisted a multistate healthcare system facing ongoing sales tax overpayments. The customer's challenge stemmed from vendors incorrectly charging tax due to missing or incorrect exemption certificates, a situation complicated by recent mergers and centralized purchasing functions.

BDO implemented a two-part solution, contacting vendors to stop incorrect charges and secure refunds while also consulting on process improvements to the purchase order and accounts payable systems. As a result of BDO's work, the healthcare system received over $3.8 million in refunds or credits within one year, resolved another $1.4 million in outstanding overpayments, and prevented future tax overpayments.