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Contract Intelligence Blog
Apr 06, 2022
Healthcare Operations Are Built On Contracts. Operate Better with Contract Intelligence
An astonishing amount of teamwork and coordination goes into meeting the needs of a single patient today.
From the software that enables online appointment scheduling and management; to the insurance company that pays for the care under a network agreement; to the suppliers that provide everything from surgical masks to ventilators; to the shifting expectations of patients themselves, healthcare providers are more reliant than ever on their networks of payers, suppliers, contracted services (clinical and non-clinical), and IT services to deliver on patient needs.
Underlying these networks of relationships are contracts. While the importance of contracts is often overlooked, by making smart choices about the digital transformation of contracts and investing in solutions such as contract lifecycle management (CLM), healthcare providers will be empowered to negotiate better, compliant contracts faster—and ensure that negotiated terms are carried out in practice.
With effective CLM, organizations can gain a holistic view of contracts, streamlining contract management to focus on patient care, and ensure their contracts are structured and connected in the most intelligent way possible.
Gain a Holistic View of Contracts
Across industries, World Commerce & Contracting (WorldCC) estimates that the average organization misses out on 8% of its negotiated contract value due to unfulfilled obligations.
A robust CLM system addresses these and other operational inefficiencies by optimizing the end-to-end contracting process. CLM can provide insights into a contracting party before contract drafting even begins (via risk assessments and other checks), then streamline negotiation, approval, execution, and post-execution compliance/fulfillment processes. CLM not only improves the management of individual contracts but also provides a holistic, 360-degree view of an organization’s total contract data, providing organizations the ability to manage their entire contract landscape more efficiently and effectively.
With the help of CLM, procurement teams can easily report against supplier information, SKUs, price, and other contract data to identify areas for improvement or performance issues. For example, by connecting contract data to ERP and AP systems, supply managers can get proactive alerts if a supplier misses delivery SLAs and take corrective action before operations are impacted. These actions, when scaled out, represent a powerful system of control for operations.
Streamline Contract Management and Focus on Patient Care
Given the critical connection contracts have to patient care, and the significant commercial and regulatory challenges that arise with manual contract management, it’s critical that healthcare providers find ways to streamline contract administration both prior to and after they are executed.
Contract Intelligence is a new category of software that leverages AI and other advanced software to digitize and structure contract data, connecting it to systems that contracts touch. This delivers intelligent insights, automation, and contract creation capabilities that create real differentiation in the market.
According to IDC, contract automation software saves the time of an equivalent of 9 FTE legal personnel on average, freeing up time and staff for more strategic tasks around improving operations and patient experiences.
When payer agreement information like fee schedules is turned into structured data, for example, provider organizations can quickly analyze the impacts of different contract scenarios during negotiations and renewals, accelerating the contracting process. Once contracts are executed, payers and providers enjoy a single source of truth for obligations carried by both sides, with automatic, ongoing compliance monitoring reducing the chance of conflict in the business relationship.
With Contract Intelligence, healthcare providers can enjoy more intelligent contract creation, more intelligent contract automation, and more intelligent contract insights—all with less overhead.
The Most Intelligent Way to Structure and Connect Contracts
Icertis has spent more than a decade pushing the boundaries of what’s possible with CLM and today is the analyst-validated leader in this rapidly growing category. Utilizing our deep experience with customers across the healthcare industry, we have developed a solution that accelerates the benefits of contract intelligence while leveraging best practices and industry insights.
The next decade will see enormous change for healthcare providers. Maintaining a healthy relationship between healthcare providers and payers is key to moving forward in this world. By using Icertis Contract Intelligence, and having the data and agility needed to quickly understand and respond to new opportunities and risks, the relationships can be nurtured and grow productively and be ready for whatever the future of healthcare brings.
To learn more about Icertis Contract Intelligence for Healthcare Providers, download our eBook.
Icertis Remains a Leader in the Q1 2021 Forrester Wave
Icertis has again been recognized as a Leader in the Forrester Wave: Contract Lifecycle Management For All Contracts Q1 2021 report. This is the second consecutive Wave report to recognize Icertis as a Leader. Read the report and learn more about the impact of CLM and why Icertis has been named a Leader.