Extend the Power of Contract Lifecycle Management through IntegrationControl costs and increase compliance by combining your healthcare contracting and ERP solutions.
Control costs and increase compliance by combining your healthcare contracting and ERP solutions.
Are you paying your vendors more than the contracted rate? Are your providers compensated in accordance with federal regulations? Answering these questions isn’t always easy.
In the complicated arena of healthcare contracting, you need effective contract management solutions that support, enforce, and report on multiple compliance, financial, and risk-related processes. You must pay providers compliantly (according to Fair Market Value and the Anti-Kickback Statute), and you need to avoid overspending by paying vendors according to the contract terms you negotiated.
Maintaining compliance and controlling costs is often easier said than done, when multiple people are involved and the left hand doesn’t always know what the right hand is doing. People in different departments using multiple software systems that don’t share data may duplicate work, miss potential compliance violations, and/or over-spend. When contracts are stored in your contract lifecycle management (CLM) solution, and vendor invoices and payment information are housed in your Enterprise Resource Planning (ERP) solution, managing vendor relationships is difficult. You may be paying invoices that charge premium prices instead of those you’ve agreed to in hard-fought contract negotiations. Or you may be issuing or renewing contracts with suppliers that are subject to credit holds or bankruptcy.
You can avoid these pitfalls by integrating your healthcare-specific CLM with your ERP solution. Pairing the two links contractual and operational data to identify cost-control opportunities and increase compliance.
By coordinating efforts and sharing data, CLM-ERP integration helps you:
Reduce duplicate data entry. When you engage a new supplier, an entry in the ERP system automatically moves to the CLM solution, eliminating the need for manual input. This saves time and reduces human error.
Control costs. By automatically comparing vendor invoices in your ERP with contract data, you can identify vendor overpayments and off-contract spend.
Monitor physician compensation for regulatory compliance. Connecting physician contracts with the HR system facilitates compliance with HR policies, training, and regulatory demands. You can ensure that providers are being paid in accordance with their contracts, Fair Market Value, and the Anti-Kickback Statute.
Track employment status. When you have thousands of employees—with contract data stored in your CLM and payroll and human resource data stored in your ERP—it can be difficult to keep up with employment status. When employees leave your organization, they should no longer have access to certain software and electronic health records containing protected health information (PHI). When your CLM and ERP are integrated, employment status updates are pushed to your ERP, helping you accurately maintain your organization’s Active Directory. Through interaction with Active Directory, you can automatically disable user accounts when employees leave, avoiding potential HIPAA violations.
Related white paper: The Experts’ Guide to Healthcare Compliance
TractManager’s Contract Analytics further support your cost control and compliance efforts. Contract analytics can:
- Identify contract redundancies and pricing irregularities to help you avoid overpayments and unmonitored auto renewals for duplicative or less than optimal services.
- Identify contracts that require Business Associate Agreements (BAAs) but are missing them, to prevent expensive penalties for noncompliance.
- Monitor physician compensation to help you maintain compliance with regulatory requirements around total compensation and Fair Market Value.
To learn more, read our white paper, Better Together: ERP and a Healthcare-Specific CLM Combine to Optimize Cost Control.
Better Together: ERP and a Healthcare-Specific CLM Combine to Optimize Cost Control
Agnostic contracting systems are designed to serve diverse industries, not healthcare. This puts your compliance program at risk.