Not Using P-Cards and Ghost Cards? You’re Missing Out On Savings

Hospitals often focus on improving patient care and clinical outcomes but many miss a hidden opportunity right under their noses: smarter payment methods. Without modern tools like P‑Cards and ghost cards, hospitals lose money through fraud, manual reconciliation costs, and poor spend visibility.

79% of organizations experienced attempted or actual payment fraud in 2024, underscoring the risk of outdated financial controls. And in healthcare specifically, purchased services can account for 40–55% of non‑labor costs, meaning unmanaged spend can quietly drain budgets.

In this blog, we’ll unpack why skipping digital payment solutions like P‑Cards and ghost cards is costly and how hospitals can save money by modernizing payments and integrating them with spend analytics.

Understanding P‑Cards and Ghost Cards

Even though they sound similar, P‑Cards and ghost cards serve different but complementary purposes when it comes to managing spend.

What Is a P‑Card?
A Purchase Card (P‑Card) is a card issued to departments or individuals with preset spending limits and controls. Unlike traditional corporate credit cards, P‑Cards can be generated with unique numbers and transaction limits to reduce unauthorized purchases.

What Is a Ghost Card?
A Ghost Card is a digital credit card number assigned to a department or a specific vendor, rather than a person. Ghost cards offer robust control and tracking for recurring spend with vendors or department budgets.

These tools help hospitals manage spend more securely and transparently than traditional credit cards or manual payments.

The Real Costs Hospitals Face Without Governed Payment Spend

• Fraud Risk Is Only Part of the Problem

Payment fraud remains a concern for healthcare organizations. In 2024, 79% of organizations experienced attempted or actual payment fraud, and paper checks remain a major risk, with 63% reporting check fraud.

Digital tools like P-Cards and ghost cards reduce exposure through spending limits, vendor controls, and tokenization. But fraud prevention alone does not address the largest source of financial loss in purchased services.

• Manual Processes Add Cost and Hide Overspend

Manual payments increase administrative effort and slow approvals. Even when hospitals modernize payments, many stop at efficiency gains. Transactions are processed faster, but not analyzed strategically.

Without centralized oversight, hospitals still lack visibility into:

• Whether card purchases align with negotiated contracts
• How pricing compares across departments or facilities
• Where small, recurring purchases quietly add up

• Poor Spend Visibility Drives the Biggest Losses

Purchased services can account for 40–55% of non-labor hospital spend, and a growing share flows through P-Cards and ghost cards. When that spend remains fragmented, hospitals miss opportunities to benchmark pricing, consolidate vendors, and enforce compliance.

Modern payment tools improve how purchases are made. Valify ensures hospitals can evaluate whether those purchases were made at the right price, with the right vendor, under the right terms.

By turning card transactions into clean, categorized purchased services data, Valify helps hospitals uncover savings that would otherwise remain hidden.

How P‑Cards Save Money

Budget Control and Spending Limits

P-Cards allow hospitals to set transaction, department, and vendor-level limits. This helps prevent unauthorized purchases and keeps spending within defined guardrails.

For example:

• A radiology P-Card can be restricted to approved suppliers
• Travel P-Cards can be limited to specific merchant codes

These controls reduce obvious misuse. However, limits alone don’t ensure hospitals are paying the right price or buying from the right vendors.

Automation Reduces Administrative Work

P-Cards streamline transaction recording, reconciliation, and approvals, reducing manual work and processing delays. Finance teams benefit from faster close cycles and fewer administrative errors.

But automation only improves efficiency. It does not reveal:

• Whether purchases align with negotiated contracts
• Whether pricing is consistent across departments
• Whether recurring purchases should be sourced differently

Without spend analysis, overspend simply moves through the system faster.

Rebates and Cash‑Back Opportunities

P-Card rebate programs can return a small percentage of spend to the hospital. While helpful, rebates rarely offset losses from off-contract pricing, rate variance, or vendor duplication.

True savings come from what hospitals pay, not small percentages returned after the fact.

Improved Spend Tracking and Transparency

P-Cards generate detailed transaction data by department, vendor, and category. On its own, this data is descriptive.

When centralized and categorized through Valify, P-Card data becomes a powerful input for:

• Identifying off-contract purchases
• Highlighting price variance across departments
• Consolidating vendors
• Supporting benchmarking and sourcing decisions

P-Cards enable visibility. Valify turns that visibility into measurable savings.

Why Ghost Cards Matter in Healthcare Procurement

Department-Level Visibility With Control

Ghost cards assign digital card numbers to specific departments or vendors, giving finance teams clearer visibility into recurring spend without relying on spreadsheets or manual GL coding.

On their own, this visibility is operational. Without centralized analysis, ghost card transactions can still bypass sourcing review and contract controls.

Designed for Recurring Purchased Services

Ghost cards are commonly used for recurring services such as equipment maintenance, facilities support, and vendor-managed programs. They allow payments to continue without issuing physical cards and can be restricted to a single vendor or merchant code.

This improves efficiency, but it also means recurring charges can continue year after year without pricing review or competitive sourcing.

Security Helps. Oversight Drives Savings.

Ghost cards reduce fraud exposure because each card is limited in scope and can be disabled quickly. This protects accounts and reduces disruption.

The larger financial risk is not fraud. It is a recurring service spend that goes unreviewed and unbenchmarked. When ghost card transactions are centralized and analyzed through Valify, hospitals can identify pricing inconsistencies, redirect spend to contracted vendors, and strengthen compliance.

Ghost cards support efficiency. Valify ensures recurring purchased services deliver measurable savings.

Comparing Payment Methods: Which to Use When

Below is a simple comparison that helps hospitals and healthcare finance professionals choose the right tool:

This table offers a quick reference for choosing tools that align with operational goals and security requirements.

Real Costs Hospitals Can Avoid With Governed Digital Payments

• Reconciliation Delays

Manual reconciliation can take days or weeks, slowing payments and straining vendor relationships. Digital payment tools reduce this friction and shorten finance cycles. However, faster reconciliation alone does not reduce spend. Savings only emerge when transactions are reviewed, categorized, and analyzed at the purchased services level.

• Unreviewed Purchased Services Spend

Purchased services are complex and often distributed across departments. P-Cards and ghost cards improve visibility, but without analysis, inefficiencies remain hidden. When card transactions are centralized and categorized through Valify, hospitals can identify off-contract purchases, pricing inconsistencies, and vendor overlap that drive unnecessary costs.

• Missed Contract and Benchmarking Opportunities

Without clean, structured transaction data, hospitals lack leverage in supplier negotiations. Pricing outliers and rate variance remain undetected. Valify uses card-driven spend data to benchmark pricing, support sourcing decisions, and strengthen compliance, helping hospitals avoid overpaying for services they already purchase.

How Digital Payments Integrate With Spend Analytics

Good data enables good decisions. When card transactions are captured digitally with rich metadata, spend analytics tools like Valify can:

• Cleanse and categorize spend into 1,400+ purchased services categories
• Benchmark pricing and terms across peers
• Identify off‑contract spend and savings opportunities
• Highlight risk and compliance gaps

This integrated approach transforms raw payment data into actionable insights, unlocking measurable cost savings while improving operational efficiency.

Best Practices for Implementing P-Cards and Ghost Cards

1. Connect Payments to AP and Procurement

Digital payment tools should integrate directly with accounts payable and procurement systems. This ensures transactions flow into a single view and reduces manual effort. Without this connection, spend data remains fragmented and difficult to manage.

1. Establish Clear Usage Policies

Define which expenses are permitted on P-Cards and ghost cards and apply spending and vendor limits consistently. Clear policies help prevent off-contract purchases and reinforce sourcing discipline across departments.

1. Train Departments on Proper Use

Departments should understand not only how to use cards, but how transactions are tracked and reviewed. This accountability helps reduce misuse and supports compliance with preferred supplier programs.

1. Review, Benchmark, and Act on the Data

Regular review is where value is created. When card transactions are categorized and analyzed through Valify, hospitals can benchmark pricing, identify savings opportunities, renegotiate contracts, and consolidate suppliers.

Maximize Savings with Valify

P-Cards and ghost cards are not the problem. Unmanaged purchased services spend is.

When card-based transactions operate outside centralized oversight, hospitals face higher costs through off-contract purchases, inconsistent pricing, and limited leverage with vendors. Fraud and manual processing add risk, but the largest financial losses come from spend that is never reviewed or challenged.

By pairing P-Cards and ghost cards with purchased services spend analytics and governance through Valify, hospitals can:

• Centralize and categorize card-driven spend
• Strengthen compliance with preferred supplier programs
• Identify pricing variance and sourcing opportunities
• Convert fragmented transactions into measurable, sustainable savings

Take control of your hospital’s purchased services spend.

Schedule a demo with Valify to see how governed digital payments support smarter sourcing, stronger compliance, and better financial outcomes.

Frequently Asked Questions:

What are P‑Cards and ghost cards?
P‑Cards are purchase cards with preset limits for department spend. Ghost cards are digital card numbers tied to departments or vendors, enabling controlled recurring payments.

How do P‑Cards help hospitals save money?
They enforce spending limits, improve compliance, reduce manual reconciliation, and often come with cash‑back or rebate programs.

Are ghost cards more secure than traditional credit cards?
Yes, ghost cards can be limited to specific vendors or departments and disabled instantly if compromised, reducing fraud exposure.

What’s the difference between a ghost card and a virtual card?
Ghost cards are persistent digital cards tied to departments or vendors. Virtual cards may be single‑use and tied to individuals or transactions.

Can digital payment data improve spend analytics?
Absolutely. Clean, categorized payment data powers analytics platforms like Valify, revealing savings opportunities and benchmarking insights.

Valify Team

The Valify Editorial Team is dedicated to sharing insights, strategies, and innovations that help healthcare organizations gain control of purchased services spend. Backed by years of expertise in data analytics, procurement, and healthcare technology, the team curates practical resources and thought leadership to guide hospitals and health systems toward greater efficiency and savings. By combining industry knowledge with real-world case studies, the Valify Editorial Team delivers content that empowers decision-makers to drive smarter, data-driven sourcing strategies.