4 Rules For Implementing A Successful Contract Management Strategy

Managing contracts is a crucial part of any healthcare facility’s revenue cycle. Chalking out a robust strategy for handling contracts is, therefore, instrumental in maintaining a healthy flow of revenue.

Contract Management is a slightly more complicated function in a medical setup as compared to any other field. This complexity is primarily due to the sensitive nature of the information that is handled. Aside from ensuring absolute compliance concerning legal mandates, it is vital to critically scrutinize contractual agreements with vendors to ascertain inclusion of privacy guidelines as well as special rates and allowances that your facility is entitled to receive. Studying an agreement and signing it after all the important clauses have been added is only half of the job. Additional checks and balances are required from time to time to prevent persistent slip-ups or non-compliance issues.

Putting together a Contract Management Strategy for your entity is an excellent idea even before beginning to negotiate with a vendor. The four rules to keep in mind while rolling out a successful strategy are as follows:

1. Authenticate Vendors – Before you establish an agreement, it is essential to conduct a thorough background check to validate the vendor’s authenticity. Vendor verification is a fundamental preparatory activity that will help you gather information their credentials as well as prepare you for working with them in the future.

2. Get Professional Help When Finalizing Contractual Elements – A professional agency that specializes in medical contract assessment can be very helpful in getting perfect terms and subsidized rates depending on the kind of healthcare facility you operate.

3. Reduce The Chances of Vendor Slip-Ups – Vendors failing to adhere to all the clauses is a typical scenario. To maintain the fiscal health of your organization, it is critical to catch such non-performance issues and bring them to light. Action plans can be drawn up to tackle violation of contractual obligations to prevent recurrent slip-ups by vendors.

4. Be Transparent and Audit-Ready at All Times – Maintain an audit trail for all your transactions with payors and other vendors. Transparency in a provider-payor relationship goes a long way especially since it enables both the parties to stop worrying about legal issues and non-compliance. A healthy relationship with payors can also prove to be fruitful in the long run as it could lead to special pricing and terms.

Read more:The 5 Pillars of Care Management

Mirra Healthcare (TPA) is a professional healthcare management company that offers credentialing and contracting facilities to healthcare units of all sizes and types. Mirra employs professionals who are experienced in the area of contract management especially with payors and are, therefore, an excellent asset for any organization that enlists their services. If you too are grappling with the intricacies of contract management and need innovative services like the ones in our Medicare in a Box solution to help solve them, then reach out to us at Mirra by clicking here.