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  • What is Contract Management?

    What is Contract Management?

    Effective Management of Healthcare Contracts

    Contract management plans, organizes, and executes the activities required to manage the contract from start to finish. The role of this department is to make sure that all the processes are followed and no hiccups are encountered along the way. Contract administration on the other hand is responsible for day-to-day operations and running a successful business under the contract framework. This includes maintaining effective contracts in place, implementing operational procedures, monitoring performance, tracking costs as well as managing human resources and technology needs. Contract management vs contract administration can look like similar tasks at first glance but they are actually very different in practice. This article will help you grasp why so.

    What is contract management?

    Contract management is the process of managing contracts from inception to closure. This process involves a lot of planning to ensure that activities are correctly executed, risks are mitigated, and deadlines are met. In essence, the role of the contract manager is to ensure that the project stays on track and isn’t derailed by unexpected occurrences. It is the role of the contract manager to coordinate the work of internal and external personnel, ensure that all legal documents, such as contracts and agreements, are up to date. The contract manager is responsible for obtaining the necessary approvals, such as the approval of the owner, the sponsor, and the customer. The contract manager is responsible for ensuring that the terms and conditions of the contract are followed.

    What is contract administration?

    Contract administration is the process of managing a contract from start to finish. This process involves a lot of planning to ensure that activities are correctly executed, risks are mitigated, and deadlines are met. In essence, the role of the contract manager is to ensure that the project stays on track and isn’t derailed by unexpected occurrences. It is the role of the contract manager to coordinate the work of internal and external personnel, ensure that all legal documents, such as contracts and agreements, are up to date. The contract manager is responsible for obtaining the necessary approvals, such as the approval of the owner, the sponsor, and the customer. The contract manager is responsible for ensuring that the terms and conditions of the contract are followed.

    Differences between Contract Management and Contract Administration

    – Focus – Generally, while preparing a bid, both the terms and conditions in the bid document and the bid document itself is the same. However, the responsibility of the contract manager and the contract administrator gets split once the contract is signed. The contract manager is responsible for ensuring the terms and conditions in the signed contract are followed, whereas the contract administrator is responsible for the execution of the contract from start to finish. – Scope – The responsibilities of the contract manager and the contract administrator will vary depending on the nature of the contract. For example, if you have a contract to build a software, contract manager will be responsible for managing the design of the software while contract administrator will be in charge of executing the project. – Composition – The contract manager and contract administrator roles are often combined in the form of a project manager. In such a case, the project manager manages the overall project and both contract management and contract administration roles are combined in this person.

    Key Takeaway

    The roles of the contract manager and the contract administrator can be distinguished based on their focus and scope, as well as the composition of their roles in a contract. In essence, contract management is responsible for ensuring that the project stays on track and gets delivered, whereas contract administration is responsible for the day-to-day operations under the contract framework. It is advisable to hire a professional team like WWS for efficient contract management and executions of the contracts.
    Maximize Your Payer Network – Get In Touch With A Contracting Expert In Your Region

  • Things you should know before signing a contract

    Things you should know before signing a contract

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    You should know before signing a Contract with insurance companies that are dense with legal and financial information that primary care physicians may find difficult to comprehend and keep track of. Most insurance companies hope for this, and they frequently create contracts that are so densely packed with technical terminology that simply understanding them takes a long time. Regardless, you should make an effort and devote the time necessary to understand your strategy.

    In general, insurance contracts should pay you roughly 12% more, but the contract’s complicated verbiage is designed to make the process more difficult and deceive you into signing a contract with lower rates. When this happens, you should open up the topic for renegotiation of your contract. And, if you’re not careful, you might not get the rates you deserve. There are several guidelines to follow in order to successfully renegotiate a contract, and you should also know when to reject a contract.

    Health plan insurance strategy

    Knowing more about the health plan given by the insurance providers is the most crucial thing to do before you decide to go through the contract or if you need to check if you should be renegotiating. This phase is critical because it allows you to determine whether or not your practice is eligible for the plan and how well it fits the health plan. You should go to your health plan’s website or contact them for information on additional healthcare providers, such as primary care physicians like yourself or hospitals and surgery centers. Not only does this assist you in determining whether your service is covered by the health plan, but it also informs you of your importance to the health plan.

    Contract renegotiation

    If you believe that the initial contract is not providing you with what you are worth, it may be time to renegotiate. While renegotiating the terms of your contract, be wary of the following deal breakers, which may appear innocuous enough but are actually set purely for the benefit of the insurance provider. If these are the terms of your initial contract, set up a meeting for contract renegotiation as soon as possible because you are not being treated fairly.

    • The insurance provider does not need our signature to change the terms of the contract. This is a big no-no in any field, not just insurance, because you have no say over any future changes to the contract.
    • The health plan may change significantly, and you will be required to follow those changes because you waive your right to be consulted about these changes.
    • You do not have access to all applicable fees.
    • The contract’s definitions of who has access to the services are unclear and ambiguous.
    • According to your contract, you are not permitted to set any parameters or limits for your practice. This restriction on your independence is a deal breaker because you will always need approval from your insurance providers.

    These are the most prevalent deal breakers in contracts that are purely for the advantage of the insurance company. In general, if your contract is littered with confusing phrases that are difficult to keep track of, as well as provisions that take away your authority over most topics, it isn’t right for you.

    Before you sign a contract, speak with one of our professionals at WWS, who can guide you in establishing insurance contracts that are both business-centric and profit-oriented.

     

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