Contracts are indispensable documents in all sectors and health is no exception. A typical hospital or healthcare organization has hundreds to thousands of contracts with a number of providers, individuals, and organizations. A recent study showed that about 10% of all orders are lost across all industries. These frightening statistics illustrate the need for effective contract management. « 96% of participating U.S. healthcare systems and provider organizations report that they do not have a contract management system that uses only manual processes or that they have an outdated and inadequate system to provide value-based care. PayrHealth captures all the important aspects of interactions between payers` contracts, and then maps the most effective relationship path to streamline payment and get the results your business needs. Health care providers and hospital management staff are always looking for ways to reduce costs without compromising the quality of care. It`s natural – if a hospital saves lives every day, it`s also a business. An often overlooked facet? Contract management in healthcare.
PayrHealth provides providers with a healthcare contract management system and a dedicated team that provides all the relevant techniques, tools, and insights you need to properly analyze data and ensure complete visibility and prioritize the right contracts. Never fall back into the statistics of 70% of providers who encounter closed networks, or let a payer say « no », « we have a privileged partner » or « Come back later ». What do healthcare best practices mean? It`s the gold standard: it increases efficiency without compromising patient care. So what are these best practices when it comes to managing health care contracts and contracts with payers? All facets of hospital management have been forced to adapt to these disorders. Contract lifecycle management solutions are no different. Contracts should reflect the latest laws and regulations, which is why many suppliers take advantage of contract management specialists. It is important that you establish a clearly defined process for each agreement and type of contract. With these measures, you can both ensure compliance and create additional efficiency. Typically, phases of the contracting process include: Linking relevant information.
Contracts go hand in hand with policies and procedures. For example, if you have a security policy or procedure, you may have a contract with a HIPAA security consultant associated with you. In an effective contract management system, you should be able to link each contract to the relevant policies and procedures to create a seamless integration for compliance purposes. This most likely requires the introduction of an electronic policy management system and an electronic contract management system. The healthcare sector has evolved rapidly over the past decade thanks to technological disruption and new government policies and mandates. Many providers have had to adapt spontaneously to these changes. Add to that complex factors – compliance regulations, the demand for increased security around private electronic health records (EHEA) and the constant time pressure hospitals face – and the right course of action becomes even more unclear. A contract management solution for health plans that aims to improve efficiency, reduce administrative costs and eliminate errors throughout the supplier contract lifecycle. Partnering with a healthcare contract management system helps you measure relationships and use actionable data more effectively. Sound management of healthcare contracts can play a crucial role in tipping the balance in favour of the provider.
But what are the best practices for contract management in healthcare that all providers need to follow? A contract management system is useless if you can`t immediately access the files you need when you need them. Your organization will likely have hundreds, if not thousands, of agreements with customers, suppliers, and other businesses. And while even a 10% loss of contracts can lead to serious compliance issues, you`d better have a contract management solution that allows you to document, categorize, and sort all of your many contracts, such as: An effective contract management system allows you to link each contract to relevant security regulations. This creates seamless integration of compliance across the enterprise. The majority of transactions within a healthcare organization are subject to contracts. These contracts can have a significant impact on day-to-day business operations and your bottom line. Yet far too many healthcare providers rely on ad hoc manual contract management. According to a 2019 Black Book study, an effective contract management system enables healthcare organizations to provide patients with the best possible care, reduce operating costs, ensure compliance requirements, and minimize risk. A contract management system simplifies how contracts are managed from start to finish by streamlining the processes of creating, routing, reviewing, and approving contracts. Finance in healthcare. Efficient hospitals operate with -2% margins on Medicare payments, MedPAC reports.
www.healthcarefinancenews.com/news/efficient-hospitals-operate-2-margins-medicare-payments-medpac-reports manual processes inevitably increase your risks and costs. In fact, Black Book estimates that « manual contract management costs healthcare providers and systems a total of nearly $157 billion per year. » You need a system that makes it easy to transition from a fee-for-service model to a value-based compensation model and helps: with this step, you can make it easier to create entire complex contracts or automatically fill in frequently used clauses, saving time and headaches in the process. As a healthcare organization facing the issues mentioned here, you may already be using some type of software to help you overcome these above issues. At Policy Medical, we developed « PolicyManager, our proprietary software that currently helps hundreds of hospitals around the world solve the problem of contract management in healthcare. Depending on your current business needs, this software may or may not be the right solution for you, and to learn more, you can simply go to the following page: Simplified Policy Management. PR Newswire. Value-based care modeling is driving the skyrocketing demand for contract management tools, according to Black Book`s CFO`s survey, Axiom of Kaufman Hall Rated Top Solution. www.prnewswire.com/news-releases/value-based-care-modeling-drives-meteoric-demand-for-contract-management-tools-per-black-books-cfo-survey-axiom-by-kaufman-hall-rated-top-solution-300867575.html Last week, we presented best practices in policy and process management. This week, we`re sharing another article on best practices on contract management in healthcare. We are aware that managing all these contracts is not an easy task for any company, and we hope to be able to better support the overall process.
PolicyMedical specializes in document management software for policies, contracts and business partners designed specifically for the healthcare industry. Our software solutions are reliable and currently used by more than 3,000 healthcare organizations and institutions in the United States and Canada. Create accountability with workflow automation. Anyone working on contracts knows that the process of creating or reviewing contracts can easily be interrupted if a contract gets stuck in a person`s inbox or on their desktop. These delays can mean the difference between meeting and missing a deadline – and for your healthcare organization, between establishing a new relationship and missing a deadline. Automated workflows prevent this by reminding individuals of important obligations, contract data, and termination data by attaching that information to the contract in an automated system. .