5 Reasons To Have A Contracts Management System

Being in the healthcare industry for over a decade, we have witnessed the evolution of the role of technology in the industry. As technology advances, the need for paper documents has been decreasing. This is mainly due to the fact that piling stacks of documents and contracts may not only gobble up physical space, but also create confusions resulting from the loss and misplacements. When it comes to documents, contracts may, arguably, hold the highest prestige, as they play a critical role between the involved parties. Let’s be honest, a lot of focus and energy is put into making a deal. Whether it is signing a new client, or creating a partnership with a vendor, a lot of focus gets put into making sure everything is just right for when the contract is signed. But, what happens to that contract once it’s been signed? Is the same amount of effort put into maintaining and managing the content of contract? Just because the agreement has been signed, it doesn’t mean the job is done!

Benefits Of Employing A Contracts Management System

There are many reasons why contract management in the healthcare industry is important. I want to touch on 5 of those points, and hopefully provide some insight into effectively managing those partnerships you worked so hard on.

Accessibility: “Where do I find that contract?”

The last thing you want to do is spend hours shifting through files, looking for 1 contract, and 1 key piece of information. Contracts Management software is usually a cloud-based platform, providing your staff the ability to organize, manage, and access all the contracts in a centrally located area. Our contract management platform improves the way contracts are stored and managed from the start, eliminating any lost time in the future. By putting the right processes in place, managing your contracts will become a much more simplified task.

Contract Ownership: “Who’s in charge of this within my healthcare organization anyway?”

It’s inevitable, sometimes you will have questions about the content of a contract, and who better to answer your questions than the owner or manager of the contract? Contracts Management software should allows you to assign a committee, owner, and manager to a particular contract. Through each stage of the contracts creation, execution and renewal, these are your “go-to” people for the contract, and will ultimately be the people liable for its legitimacy.

In addition to the ownership of the contract, sometimes it can be difficult to shift through or distinguish if a particular contract is relevant to your department. Contracts Management software should allow you to assign a contract to designated department. If you have multiple contracts with various departments, you are able to assign the contract to the appropriate area, making the search more defined.

Important Contacts: “Who can I reach out to?”

It’s probably fair to say that you don’t want to scan through multiple pages of a document to find out who your accounts receivable contact is; Contracts Management software should allow you to assign particular responsibilities to important contacts, all in a centrally located area. Having the ability to locate and contact the right person saves time, and a lot of work all around – something I am a big fan of!

Keeping Track of Financial Metrics: “What’s the forecast?”

Keeping track of financial metrics is just as important as signing the initial agreement. This not only improves the working process of departments such as accounting and legal departments but also the sales department. Understanding your contract is key, and having the ability to know what the financial forecast looks like for a particular vendor is a great advantage. With over 30 reports to choose from, Contracts Management software usually will put the data that you have entered into the system, and provide a snapshot of the metrics based on the report you have selected.

Auto-Renewal: “Friend or Foe?”

The more you know about the contracts you have, the better! Sitting on a bunch of contracts that are auto-renewing each year is doing your organization no favours. Whether or not you simply aren’t tracking the expiry of the contract, or you don’t have a system to do so, letting your contracts fly by the waist side could mean lost opportunities, postponed renewals, and a lost relationship with a vendor or client. Contracts Management software should provides its users the ability to set alerts and reminders on renewals of agreements. This process can all be done when the agreement is first entered into the system, it just requires a little time at the beginning, and will ultimately save you time and money when all is said and done!

PolicyMedical’s Contracts Management System

Due to the above mentioned reasons, we at PolicyMedical, realize the need to create a robust contracts management solution to offer our clients a better alternative to manage their contracts. However, we realize that our software is not a perfect fit for everyone and that another vendor may offer a better match for your specific needs. Regardless, we would be more than happy to help you come to a sound conclusion. Please contact us if you require more information. Alternatively, you may book a demo to witness our ContractsManager in live action.

About the author

Alida Dhama

I have a vast background with developed skills in business administration and event coordination. In 2007, I attended Seneca College to pursue and receive a diploma in Business Administration. During this time I discovered a strong interest in creating and managing projects and events, from the beginning stages all the way to its finishing point I later transferred to, and graduated from York University, in North York, Ontario. Here I streamlined in the Global Economy and Corporate Social Responsibly, later receiving a BA in Business and Society. Prior to joining PolicyMedical, I worked as an Events Coordinator, managing and creating large-scale events including corporate business meetings, tournaments for charities, auctions, and personal events. I have also worked as an administrator, assisting in managing projects, managing accounts and processing billing. I enjoy spending time in Ontario’s cottage country with my family and friends. I also enjoy travelling to new and exciting places that allows me to experience new cultures. The two things I dislike most in life are the cold (yes I know this odd given I live in Canada) and writing about myself.