A Hospital Contract Manager is responsible for monitoring hundreds of pricing agreements. Learn to organize and better manager these to avoid overpayments.

Tips for a Hospital Contracts Manager

At major health systems and hospitals, there are hundreds of individual contracts and pricing agreements among numerous departments and teams. These contracts can be with vendors or even through a GPO. However, to stay organized and ensure an accurate Procure to Pay (P2P) process, a Hospital Contacts Manager should…

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Maintaining multiple vendor numbers for a single vendor can cause confusion in Accounts Payable, which can lead to duplicate payments.

The Danger of Maintaining Multiple Vendor Numbers

Working in Accounts Payable or Finance, you know it is important to keep your vendors and purchase orders well-organized. This means ensuring that each vendor is identified by a single number. Multiple vendor numbers for a single vendor or partner can cause issues, like duplicate payments. How AP Software…

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Open-ended purchase orders can cause confusion for Accounts Payable, Purchasing, and your ERP System.

Open-Ended Purchase Orders and Overpayments

In any Accounts Payable department, you may run into open-ended purchase orders. Especially in a major healthcare system, open-ended purchase orders are problematic because they prevent ERP systems from identifying overpayments or flagging duplicate invoices for review. Avoid these issues with open-ended purchase orders by putting effective purchasing controls in…

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A lack of departmental communication can cause inefficiencies, over payments, and lost funds for major health systems.

Lack of Departmental Communication Leads to Overpayments

Major health systems have many departments that all have to work together seamlessly. A lack of departmental communication is inefficient and can lead to lost funds or overpayments. Contracts and maintenance agreements are renewed annually, or in some cases even less frequently. Because of all of the complexities of…

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Make sure you're not leaving money on the table, and avoid overcharges by entering contracts quickly and accurately every time.

Avoid Overcharges by Entering Contracts Promptly

At a large health care system, there are many individual contracts and pricing agreements – both directly with vendors and through group purchasing organizations (GPOs). This can be complex, and it takes a team commitment to avoid overcharges by entering contracts quickly and accurately. Three Step Process for Favorable Pricing…

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A notebook and pencil is not the correct way to document returned goods. Be sure your health system has a consistent Returned Goods Process in place.

Returned Goods Process: What to Document When Making a Return

One of the largest areas of claims recovered from an audit of a major healthcare system is Returned Goods. Effective returned goods processes are necessary to properly account for all return credits owed to a hospital. A successful returned goods process starts with knowing what to document when making…

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Although pharmacy purchasing agents may be accustomed to using it, vendor-maintained data should not be used for purchase orders at major healthcare systems.

Vendor-Maintained Data Should Not Be Used for Purchase Orders

In your Pharmacy Department, you may use vendor-maintained ordering systems to purchase products. Many major health systems do. However, it’s imperative that your Accounts Payable department does not create purchase orders based on vendor-maintained data. Instead, develop a process and educate your purchasing agents on your ERP system. Traditional Checks and…

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A team reviews and writes on invoice copies during a meeting. Non-original invoices cause duplicate payments and confusion for Accounts Payable departments.

Non-Original Invoices Cause Duplicate Payments

Duplicate payments are a common area of concern at most major health systems. When copies of original invoices exist, payments may be processed twice if the ink is smudged or blurry. These copies can be hard to read and cause confusion for the Accounts Payable department. The effectiveness of…

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Rebates Cause Tracking Challenges

At any large healthcare system, vendor rebates can be difficult to manage. Because they require a multi-step process to track dollars earned, credits issued, and monies paid, rebates cause tracking challenges for Accounts Payable departments. Rebates Versus Lower Contract Pricing Oftentimes, vendors use rebates as a key part of…

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A chair overlooking the lake. If your Accounts Payable department does not monitor the expiration of contracts and service agreements, you could be leaving money on the table.

Monitor the Expiration of Contracts and Service Agreements

At any major health care system, it is important that the Accounts Payable department monitor the expiration of contracts and service agreements. This is a crucial task as many contracts can be modified or canceled before the expiration date. These service agreements and maintenance contracts may be paid in…

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