This article was written by Lisa Miller.
Contract management is one of the most complex issues facing healthcare today. VIE Healthcare Consulting provides contract management solutions for hospitals in this challenging area.
What is contract management?
Basic contract management can be defined as the execution and monitoring of a contract for the purpose of maximizing financial and operational performance and minimizing risks.
This involves tracking purchases against contracts to ensure pricing which was negotiated is honored, preferred vendors are used, specific terms and conditions are adhered to, and discounts and rebates are received in a timely manner.
Those contracts cover areas which include:
- Partner relationships.
- Supplier/vendor agreements.
- Customer paperwork.
- Employment contracts.
Hospitals handle hundreds of legally binding documents covering the management of every single aspect of their organization. As your organization expands, these become more difficult to manage, often because of the sheer volume and complexity of the terms and conditions. For most health systems it is a daunting task that can lead to overspending and a lack of transparency.
For instance, one problem we find is that hospitals do not always realize that their contracts and leases automatically renew if they are not renegotiated following the end of lease terms in the written contract.
Managing your contracts effectively can realize substantial financial savings every year for your hospital.
Hospitals do not always realize their contracts and leases automatically renew if terms are not renegotiated at the end of the written contract. Click To Tweet
That’s where VIE Healthcare can help.
We believe that these contracts are there for your advantage, ie, to protect your hospital from operational and regulatory risks and secure competitive pricing with your vendors.
Our proven contract expertise addresses the fast-changing regulatory needs of healthcare organizations and facilitates the entire contract management process for optimal results.
A comprehensive approach to contract management
Our detailed approach to contract management includes:
- Management of all phases of contract creation.
- Expert oversight of the contract review process.
- Streamlining and improvement of contract approvals.
- Efficient execution of contract agreements.
- Lifecycle management of end-to-end contracts.
- Choice of a procurement-only approach or a holistic strategy.
- Customized solutions for each hospital.
- Providing clarity on complex contract language, including terms and conditions which must be monitored through the entire contract lifecycle.
- Uncover contractual inconsistencies and errors to ensure operations are streamlined.
- Identify and maximize potential opportunities for cost savings.
Automated contract management
As part of our comprehensive service, we provide an interactive database and automated contract management system to provide real-time maintenance of contracts across your health system while eliminating inaccuracies and non-compliance.
Our automated system provides a secure, flexible approach to managing contracts, leases, and rental agreements, allowing hospital leaders and their staff to focus on the delivery of quality patient care.
Our proprietary contract database also delivers management tools for complete contract maintenance from initial execution to renegotiation before your contracts expire. We integrate best practices across your hospital and maximize opportunities for cost reduction.
The benefits of automated contract management
- Improved financial management for CFOs.
- Reduced “off-contract” spending.
- Eliminate renewal of contracts for unwanted goods, services and leases.
- Integrate with your supply chain management strategy.
- Improve financial tracking of contract-based transactions.
- Identify and prevent overcharges.
- Provides a realistic picture of forecasts and budgets relating to vendor contract pricing escalators.
- Automatic reminder alerts several months before the end of a contract allows sufficient time for renegotiation.
To learn how VIE Healthcare can improve your contract management processes and save your hospital money call our office today at 1-888-484-3332, Ext 500, or email us at [email protected] for a complimentary consultation.