How to Improve Your Contract Management Process
In revenue cycle management, efficient contract management is critical for maintaining financial stability and maximizing revenue.
Hospitals may work with hundreds of payers, each with its own contract terms, processes, and ever-changing requirements. Managing these contracts can be tough, however, ignoring them can put even greater declining pressure on already tough margins. Having an understanding of each detail of each contract is crucial.
To make certain providers get the best reimbursement for the services they provide, it is necessary for them to negotiate their contracts annually. Certain steps may be taken to improve the process of contract management. This task can seem overwhelming, but there are ways to help make it easier.
Ready for a few ideas to help get you started with effective contract management?
Steps to improve contract management
According to HFMA’s article “Key interventions to address lagging payer reimbursements”, negotiation and contract management optimization is the 1st key intervention.
Five steps they listed to improve your contract management are:
Analyze historical reimbursement rates and identify areas for improvement.
Leverage data analytics to demonstrate the hospital’s positive patient outcomes.
Develop strong negotiation tactics based on benchmarking and market data.
Explore alternative reimbursement models that align incentives between the hospital and the insurer, such as bundled payments or pay-for-performance.
Regularly review and renegotiate contracts to ensure they reflect the hospital’s evolving services and patient populations.
*To read more details about each point, please visit HFMA’s blog at the link above.
While these key steps are vital in negotiating contracts, automation is another important strategy for holding the payers accountable.
Automation, in today’s world? Groundbreaking.
Today, digitalization makes most solutions just a click away. Automated contracts keep current, are all in one place, allows for collaborations, and guarantees data security and reliability.
Contract management systems accurately calculate reimbursement contractually owed by payers, and effectively identifies underpayments and denials. Automation also allows for a more efficient contract cycle by improving visibility into the process.
Clear contract management methods not only increase revenue cycle proficiency and productivity but also help to decrease billing mistakes. By developing a work improvement process and identifying short paid claims, you can optimize reimbursement and compliance.
Written By: Melanie McGivney, CHFP, CRCR, RH-CBS, CAH-CBS
LinkedIn: Melanie McGivney
