Centralize, Standardize, and Optimize Your Healthcare Contracting ProcessesDo you struggle to locate important contracts in filing cabinets spread throughout your health system?
Many healthcare organizations rely on entirely manual processes or outdated software to manage their contracts. In a recent Black Book survey, 96 percent of U.S. health industry organizations polled reported not having an automated contract management solution or using an outdated system. Black Book projects that manual contract management costs health systems and providers nearly $157 billion collectively each year.1
If manual contract management processes aren’t working well for you, keep reading.
Contracts significantly impact your health system’s administrative operations and bottom line. Healthcare contracting involves more than procuring the right personnel, equipment, supplies, and services necessary for patient care — while controlling costs. Healthcare contracts must also comply with a myriad of federal, state, and accrediting body regulations. Penalties for noncompliance are steep, in terms of fines and reputational damage. The best way to maintain compliance and control excess costs is to centralize, standardize, and optimize your contracting processes. What does this mean?
- Centralize contracts. Store digital contracts in a central, searchable database (e.g., a contract library). Paper contracts can be difficult and time-consuming to locate and manage, particularly when they’re stored in filing cabinets at multiple locations. Keeping track of important terms and conditions, such as auto-renewal dates and termination requirements, is also challenging when contracts aren’t centralized. When you store and manage all contracts in a single location, you gain a comprehensive view of all business arrangements.
- Standardize contracting processes. Best practice and repeatable permission-based workflows standardize your operations and promote compliance at every stage of the contract lifecycle — from initiation, review, and approval to renewal, amendment, and termination. Custom workflows for different contract types (e.g., physician agreements, purchased services) accommodate various compliance considerations. Custom workflows create transparency and accountability, eliminate bottlenecks, and systematize your decision-making processes.
- Optimize downstream contracting activities. Once your contracts are centralized and your processes are standardized, you are able to optimize ongoing contract management and downstream processes. Manually reviewing thousands of contracts can take weeks, or even months, and you don’t have the resources to comb through them. Utilizing Artificial Intelligence technology allows you to scan those contracts in a day — identifying, extracting, and analyzing key business and legal terms. This visibility into your contract data allows you to answer important business questions, reduce compliance risks, and control costs.
By centralizing, standardizing, and optimizing your contract management processes, you increase operational efficiencies, maintain compliance, and control costs. TractManager’s Contract Lifecycle Management solutions allow your organization to centralize all contracts, standardize your contract operations, and optimize all downstream contracting activities.
To learn more about a full-scope CLM solution, download “The Process Revolution” white paper.
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