Contract Management System vs. Contract Performance System

Difference between CMS and CPS

In this episode, we focus on the difference between a contract management system and a contract performance system.

Contract management systems are software systems that manage agreements.

Hospitals use them in different ways, for example, to review contract dates. or to implement a new strategy.

Contract management systems are essential for hospitals.

The gap in contract management systems is in managing contract performance, ie, what is in the invoice versus what is written in the contract.

As well as implementing a contract management system, we help hospitals manage the performance of their agreement in three ways:

  • We analyze invoice and utilization data and measure it against the contract.
  • By supporting quarterly business reviews with key vendors and suppliers.
  • We partner with hospitals in preparing their agreements prior to contract renewal meetings.

Our focus is on variations and off-contract spend to improve contract performance and optimize cost savings.

This is the difference between contract performance versus contract management.

Contract management systems can give hospitals a false sense of security.

Amendments are often missed, while renewals and auto-renewals aren’t always fully optimized.

Therefore, we encourage hospitals to map their spend to the contract for accurate insights.

At VIE Healthcare®, our view is that while contract management systems are important, it’s equally as important to identify where the gaps are.

Your priority must be to map everything from contract to spend. You need to get as close to 100 percent as possible.

However, In our experience, most hospitals are at around 50 to 60 percent.

When you optimize your contracts, you optimize your costs. This ensures your hospital is only paying for what’s detailed in the contract.

Understanding and apply best practices in contract management. This helps your hospital to maximize cost savings.

Reach out to us to find out how we can help your hospital with its contract management system.

Reach out at to discuss your cost savings goals. Also, how we can support and accelerate cost savings opportunities in your organization.

Lisa Miller

Lisa Miller

Lisa Miller is a consultant, speaker, and podcast host. Her consulting firm, VIE Healthcare, has provided services to over 1,000 hospitals and organizations since 1999.

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