Healthcare Contract Management

Healthcare Contract Management

Healthcare providers often manage contracts through manual processes such as paper-based storage, emails, spreadsheets, and shared drives. These outdated methods can significantly impact the efficiency of hospital management systems.As the need to reduce costs in the healthcare industry continues to grow, automating contract management has emerged as a promising solution. Automation can help healthcare organizations significantly cut down on yearly losses caused by inefficient, manual contract management processes.

Transforming InnovaCare’s Contract Governance with Levelpath

“InnovaCare is using Levelpath to streamline purchase governance without having to bring in more full-time employees to manage the volume of requests across our 45 facilities.”

The Importance of Effective Contract Management

A strong contract management system for healthcare should handle every contract request or renewal, including capturing signatures, while ensuring full compliance with industry regulations.Effective contract management benefits hospital administration, patients, insurers, employees, and business partners by reducing waste, costs, and risks associated with contract breaches.

Why Is Automated Contract Management Important in Healthcare?

Healthcare facilities handle numerous administrative tasks daily, from document filing to tracking compliance regulations. Manual handling of these tasks can be burdensome, error-prone, and time-consuming. The extensive paperwork and potential human errors involved in manual processes make contract management inefficient.With an average hospital maintaining thousands of business relationships, managing contracts manually can lead to significant issues, including information leaks and legal challenges due to agreement breaches.

How Can Contract Management Software Benefit Your Healthcare Facility?

Switching to automated contract management software can offer numerous benefits:

• Effective Tracking of Milestones and Renewals:Contract management software automatically tracks contracts to their renewal dates, ensuring timely compliance and smooth operations. Advanced systems include automatic reminders for important milestones, helping facilities stay on top of audits, payments, and other critical dates.
• Reduced Risk of Contract Leaks and Privacy Issues:High-quality contract management software includes robust security features like 256-bit encryption, two-factor authentication, and antivirus protection. These safeguards help prevent unauthorized access and eliminate risks associated with paper-based systems, where sensitive documents may be exposed to unapproved personnel.
• Simplified Management System:Automation reduces the workload associated with managing a high volume of contracts. Contract management software can streamline tasks such as negotiations, procurement risk analysis, and vendor spending reporting.
• Ease of Contract Creation:Automated software simplifies the contract creation process. Unlike manual systems that require extensive paperwork, automated templates allow for quick and error-free generation of multiple contracts.

Best Practices for Healthcare Contract Management

To implement an effective contract management system in healthcare, consider these best practices:

• Match Contracts to Their Regulating Policies:Contract management software makes it easy to digitally link contracts with their governing policies, ensuring organized compliance.
• Integrate Contract Management Across the Organization:Incorporating supplier management platforms with contract management software prevents redundancy and enhances accessibility for procurement and business teams.
• Conduct Regular Compliance Audits:Routine compliance audits help identify any defaults or regulatory changes. External auditors can offer an additional layer of assurance to ensure that your system remains compliant with federal and state regulations.
• Leverage Automation for Efficiency:Automation reduces repetitive tasks by filling in data and sending out alerts, expediting contract management operations.

The State of Contract Management in Healthcare

A staggering 96% of American health systems and provider organizations report either not having a contract management system or using one that is outdated and inadequate for value-based care.

The Levelpath Difference

Levelpath’s AI-powered procurement platform is trusted by healthcare providers to address contract management challenges and enhance operational efficiency.To learn more about how Levelpath’s contract management solutions can benefit your organization, visit our Contract Management for Healthcare Success Story. To find out more about how Levelpath can help your organization move faster, uncover risks earlier, and keep people focused on the more strategic work, request a demo today.