Reading Time - 4 min
Why you should spend 4 minutes reading this:
failing to manage your contracts could erode at your bottom line in excess of 5-15%
In the long-run, you’ll want to:
Become increasingly valuable to your insurance companies and then
Capture that value in your contract rates
You'll want to:
1. Create a contract management process
2. Track contract performance
to consistently achieve those two goals above.
Why contract management matters:
Your contracts create a significant amount of financial risk for your practice. If you haven't already, read Three Common Risks to understand the different risks faced by your practice.
Sample: Contract Management Process
This is not a perfect process but rather a sample. You'll need to create the best process for your team based on staffing bandwidth and unique payor environments
Sample: Contract Performance Review
WHAT is a KPI and WHY they matter
WHAT: Key Performance Indicators(KPIs) are data-backed measures that help you gauge performance.
WHY: If chosen correctly, KPIs will help you manage your organization by allocating ownership of key performance areas to your staff.
If you need help with developing contract management processes or tracking contract performance, let us know below.
High-level actions you can take based on this article:
1. Review current contract management processes
2. Develop improved contract management processes
3. Leverage existing data to empower contract team
4. Develop targets for contract team to improve your bottom line
Keep Reading - Up Next: