6 Reasons why the healthcare industry needs contract lifecycle management

The Covid-19 pandemic tested the preparedness of the healthcare industry to handle a contingent phenomenon. While the world adopted contactless ways to work, the healthcare industry's task was to stay away from homes and treat the heavy influx of patients. However, considering the patient-centric standards that the pandemic has set, the industry needs to automate its documentation procedures using contract lifecycle management (CLM) software. In this blog, we elucidate six decisive reasons for this need.


Patients' Data Security

A tremendous quantity of patients' sensitive data reaches healthcare facilities every day. These data include the personal details, psychological reports, and medical history of patients, which require utmost confidentiality. The Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002, also prohibits registered medical practitioners from disclosing the secrets of a patient learnt in the exercise of their profession.

However, healthcare facilities manually managing patients' data are always prone to the unaffordable risk of data leakage. Switching to CLM software will help them store all the patients' transactional documents in an encrypted data repository, eliminating the unaffordable risk of data breaches.


Turn-Around Time

Time is a life-saver, especially at hospitals. Documenting patient-hospital contracts like patients' onboarding and consent forms or hospital-specific contracts like Vendor Contracts and Internal HR Agreements is essential but time-draining. Such crucial contracts require step-by-step approvals from concerned physicians or administrative staff.

With manual contract workflows, documentation demands hospitals' time, diminishing the operational productivity of the entire healthcare industry. However, healthcare facilities equipped with CLM tools like instant e-signature and industry-specific contracts templates can accelerate their approval processes and enhance patient satisfaction.


Insurance Claim Denials Evaluation

Health insurances help patients pay off exorbitant medical expenses and enable hospitals to recover the bill payments. So, hospitals require good coordination between the patients and health insurance companies to manage their revenue cycle profitably. However, after a high-cost medical bill, an insurance claim denial is the last thing a patient wants. Claim denials pose uninvited challenges to hospitals too.

CLM software can extensively assist in both avoiding and resolving such denials. How? By enabling:

  • 1.Health insurance companies seamlessly and transparently draft, negotiate, e-sign policies with clients to avert potential discrepancies, and

  • 2.Hospitals effectively monitor payments and claims using CLM software's sophisticated dashboards and quickly identify-resolve the source of claim denials.


Visibility

Physician/nurse agreements, Vendor agreements, Business Associate Agreements etc., are typical in hospitals. They require constant oversight to track compliances and deadlines. With patients continuously knocking on the helpdesk, healthcare staff constantly battle to balance patient administration and contract management.

Healthcare staff empowered with CLM software can provide patient-centric output by forgoing their contract management worries as they get automated, timely alerts on compliances, deadlines, variances in payments, etc.


Telemedicine

Telemedicine owes its boom to the growing need for socially-distanced medical assistance. In 2020, India saw a colossal 300% spike in online doctor consultations. The Indian telemedicine industry is likely to reach $5.4 billion by 2025. But the rise of services like teleconsultation and tele-prescription has left the healthcare industry grappling with new concerns, like:

  • 1.Confidentiality of patient data shared during teleconsultation

  • 2.The authenticity of informed consent

  • 3.Genuineness of prescription slips

AI-powered CLM can cure these bottlenecks by enabling physicians and patients to instantly put legally binding e-signatures on patient onboarding forms, consent forms, prescription slips, etc., ensuring the fidelity of the document. Cloud repository can store the signed documents, making patients' electronic health records highly accessible to the patient and physician.


Time-Cost Control

Paper workflow is a bane for every industry, and healthcare is no different. On average, healthcare facilities store medical records for five years, generally in cabinets. But here are the two major pitfalls in paper workflows:

  • 1.An average doctor spends nearly nine hours a week on non-patient related paperwork, and it takes almost 10 minutes to retrieve one paper document.

  • 2.Paper documents are prone to thefts and misplacement. Refiling one lost document costs around $20. In 2014, the cost of physician time spent on administrative paperwork was a whopping $102 billion.

To sum up, paper workflow drains healthcare facilities' time and money. Gone are the days when patient-related documents were compiled and stowed inside cabinets. Today, healthcare facilities need large-scale, reliable, user-friendly storage solutions. Replacing cabinets with CLM software's cloud storage will help them securely store and access a myriad of medical and non-medical records and contracts, saving the time wasted on retrievals and money spent on the physical-paper repositories.

The above list of reasons for the healthcare industry to adopt CLM software is not exhaustive. AI-powered CLM can revolutionize how healthcare facilities equilibrize contract management and effective patient care. Want to know more about how CLM software works? Book a free trial or request a demo with The Legal Capsule!

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