Healthcare providers often manage contracts through manual processes such as paper-based storage, emails, spreadsheets, and shared drives. These outdated methods can significantly impact the efficiency of hospital management systems.

As the need to reduce costs in the healthcare industry continues to grow, automating contract management has emerged as a promising solution. Automation can help healthcare organizations significantly cut down on yearly losses caused by inefficient, manual contract management processes.

Transforming InnovaCare’s Contract Governance with Levelpath

“InnovaCare is using Levelpath to streamline purchase governance without having to bring in more full-time employees to manage the volume of requests across our 45 facilities.”

The Importance of Effective Healthcare Contract Management

A strong contract management system for healthcare should handle every contract request or renewal, including capturing signatures, while ensuring full compliance with industry regulations.

Effective contract management benefits hospital administration, patients, insurers, employees, and business partners by reducing waste, costs, and risks associated with contract breaches.

Why Is Automated Contract Management Important in Healthcare?

Healthcare facilities handle numerous administrative tasks daily, from document filing to tracking compliance regulations. Manual handling of these tasks can be burdensome, error-prone, and time-consuming. The extensive paperwork and potential human errors involved in manual processes make contract management inefficient.

With an average hospital maintaining thousands of business relationships, managing contracts manually can lead to significant issues, including information leaks and legal challenges due to agreement breaches.

How Can Contract Management Software Benefit Your Healthcare Facility?

Switching to automated contract management software can offer numerous benefits:

Effective Tracking of Milestones and Renewals:
Contract management software automatically tracks contracts to their renewal dates, ensuring timely compliance and smooth operations. Advanced systems include automatic reminders for important milestones, helping facilities stay on top of audits, payments, and other critical dates.
Reduced Risk of Contract Leaks and Privacy Issues:
High-quality contract management software includes robust security features like 256-bit encryption, two-factor authentication, and antivirus protection. These safeguards help prevent unauthorized access and eliminate risks associated with paper-based systems, where sensitive documents may be exposed to unapproved personnel.
Simplified Management System:
Automation reduces the workload associated with managing a high volume of contracts. Contract management software can streamline tasks such as negotiations, procurement risk analysis, and vendor spending reporting.
Ease of Contract Creation:
Automated software simplifies the contract creation process. Unlike manual systems that require extensive paperwork, automated templates allow for quick and error-free generation of multiple contracts.