CLM in Healthcare: Why Hospital Chains Need Contract Lifecycle Management
CLM in Healthcare: The Rising Market and Why Hospital Chains Should Implement It
According to a research report by Spherical Insights & Consulting, the global healthcare contract management software market was valued at USD 1.76 billion in 2023 and is projected to reach USD 9.82 billion by 2033. This data clearly indicates the potential expansion of the Contract Lifecycle Management market within the healthcare industry. Keeping this in mind, let’s examine why chain of hospitals should implement CLM.
The chain of hospitals (CoH) is a popular model for healthcare organizations. It is a way to create an integrated network of hospitals that can help maximize efficiency and reduce costs. However, CoHs are often left behind when it comes to digital transformation because some have not taken advantage of cloud-based applications such as CLM. In this article, we’ll explain why you should consider adapting CLM digitally for your CoH, and how you can get started today with PROEN.
Implementing CLM in Healthcare: Negotiate Contract Terms Faster
Contract Life-cycle Management can save time when negotiating contract terms by implementing the following:
- Automated Workflows: CLM software can automate the contract negotiation process by routing contracts for review and approval, which can save time by eliminating manual steps and reducing the need for follow-ups.
- Electronic Signatures: With electronic signatures, you can save time by eliminating the need for printing, signing, and scanning contracts.
- Version Control: The software provides version control, which can save time by ensuring that the most up-to-date version of a contract is always used.
- Search and Retrieval: CLM provides a central repository for contracts, which allows for easy search and retrieval of contracts, which can save time by eliminating the need to search through hard copies or multiple systems.
By implementing CLM, CoH can streamline the contract negotiation process, which can save time and improve overall contract performance.
Reduce Risk in CLM in Healthcare: Avoid Contract Disputes with Improved Governance
CLM can reduce risk by avoiding contract disputes through improved governance by implementing the following:
- Standardized Contract Templates: This enables the use of standard templates for all contracts, which can help to ensure that all contracts are consistent and adhere to the organization’s policies.
- Automated Approval Workflows: CLM software can be configured to route contracts for review and approval by the appropriate parties, which can help to ensure that contracts are properly reviewed and approved before they are executed.
- Contract Visibility: The system provides a central repository for contracts, which allows for easy access and visibility into all contracts, which can help identify potential risks and disputes before they occur.
- Contract Analytics: It can provide analytics and reporting on contract performance, which can help to identify potential issues and disputes early on, and take actions to avoid them.
- Compliance: CLM software can be configured to ensure compliance with legal and regulatory requirements, which can help to reduce the risk of disputes and penalties.
By implementing a CLM system, CoH can improve governance and oversight of contracts, which can help to reduce the risk of disputes and improve overall contract performance.
With CLM, you’re able to create automated processes that meet the needs of your organization. This can help reduce risk and increase efficiency. You can also improve governance by reducing manual tasks and streamlining approvals, making it easier for suppliers to manage their business activities with your hospital.
Enhance Supplier Performance through Efficient Contract Monitoring with CLM in Healthcare:
- The benefit of using CLM is to improve supplier performance with efficient monitoring of contracts. This will allow you to use data to monitor supplier performance and measure it against other companies in your industry, which can help you identify areas where improvement is needed. This will also allow you more time for strategic planning as well as allowing staff members who deal directly with customers more time on-site at suppliers’ factories or offices.
- Yes, contract lifecycle management can help to improve supplier performance by providing efficient monitoring of contracts. By automating the contract management process and providing a centralized repository for all contracts, hospitals can easily track and monitor supplier performance against the terms and conditions outlined in the contracts.
- By using automated contract management software, hospitals can easily track and monitor key performance indicators (KPIs) such as delivery times, product quality, and cost. This can help to identify any issues with supplier performance and take action to address them in a timely manner.
- Additionally, contract lifecycle management can also facilitate communication and collaboration between hospitals and suppliers, which can help to improve supplier performance. For example, hospitals can use automated contract management software to share feedback and provide real-time updates on contract performance, which can help to encourage suppliers to meet or exceed the terms of the contract.
- Overall, contract lifecycle management can help chain of hospitals to monitor supplier performance, identify any issues and take actions to improve it. This can help to ensure that hospitals are getting the best value for their money and that suppliers are meeting the requirements outlined in the contracts.
Cut Legal Costs with CLM in Healthcare:
- Contract lifecycle management can help to reduce legal costs in a chain of hospitals by streamlining and automating the contract management process and helping to ensure compliance with legal requirements.
- One way CLM can help to reduce legal costs is by providing a centralized repository for all contracts, which can make it easier to access and review all contracts in one place. This can help to minimize the risk of missing important legal clauses or deadlines, which can lead to costly legal disputes.
- CLM can also automate the contract review and approval process, which can help to ensure that all contracts are properly reviewed and approved by the appropriate parties. This can help to minimize the risk of contract-related issues and disputes, which can lead to costly legal proceedings.
- Additionally, CLM can help to improve visibility and control over the hospital’s contracts, making it easier to track and manage contract performance, compliance, and expiration dates. This can help to identify and address any potential legal issues before they become major problems, which can help to reduce legal costs.
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CLM in Healthcare Should be a Priority for Hospitals
Perhaps, CLM is the most neglected part of digital transformation for chains of hospitals, but it won’t be wrong to say, it should be a priority. The healthcare industry is highly regulated, with many contracts and agreements between hospitals, insurers, suppliers, and other parties. These contracts can be complex, and managing them effectively is crucial for maintaining compliance, reducing risk, and maximizing revenue.
Chain of hospitals should adopt contract lifecycle management to streamline and automate the contract management process. This can help to ensure that all contracts are properly reviewed, approved, and executed in a timely manner, which can help to minimize the risk of contract-related issues. Additionally, contract lifecycle management can help to improve visibility and control over the hospital’s contracts, making it easier to track and manage contract performance, compliance, and expiration dates. This can help to reduce costs, improve efficiency, and increase revenue.
Conclusion
With the benefits of digital transformation for chains of hospitals, CLM should be a priority in any company’s digital transformation effort. The sooner you get started, the better off you will be. If you’re looking for an experienced partner to help you implement CLM, your search ends right here. Write to us at contactus@proen.co.in.
Also read: How CLM can transform healthcare contracts