Healthcare providers need visibility into vendor contracts across the entire organization in order to drive contract compliance, consolidate vendor spend and reduce supply costs. At the heart of improving transparency and visibility is an effective contract management strategy. Without it, organizations lack the ability to obtain and access the data necessary to make smart purchasing decisions and maximize cost savings opportunities.
Build a successful contract management strategy by including these four key elements.
Validated Vendor Data
It is critical to know that the company you are intending to establish a contract with is who they say they are, and that the information can be validated through outside resources. Prior to executing the contract, check the vendor’s legal and financial health and verify they are not on any government watch lists. Accurate information on all the companies with existing contracts is vital to risk monitoring and control.
Utilize a Contract Manager System
Implement an online repository for all contracts and associated documents. The repository should be accessible by a defined number of users with associated contract level security. Use this repository to store all documents associated with a contract and apply a process for linking to ensure that all relevant documents can be found when necessary. Establishing a centralized electronic contract database puts you in control of your agreements.
Utilize Notifications, Notes and Other Documents
Track all contract milestones, monitor contract compliance and maintain a complete history of contract activity. The ability to receive interactive data and alerts on a contract is essential to saving time and money.
Continually Monitor Vendor status
Automated updates to changes in your vendors’ profile can help identify potential risks to your supply chain. Changes in ownership and regular reviews of financial/legal status can proactively indicate the need to modify or even terminate a vendor relationship. Continual monitoring for government sanctions and Medicare fraud is imperative for compliance.
Closely monitoring your vendor contracts is a key component to drive compliance and ultimately reduce supply costs. GHX offers contracting solutions to improve the efficiency of your processes. Our integrated platform allows for centralized decision-making and facilitates collaboration.
Learn more about Contract Manager Xpert.