Contract Administration

Managing the Contracting Process

Industry research estimates a potential reduction of 0.5% to 2.0% in hard and soft costs by using contract management software, the smart move is to find the right solution.

Our healthcare system clients have made the move to VMS Contract Administration. This solution creates a single view of contracts and items across the system which may involve extracting contracting and item data from multiple systems. Contract Administration also includes contract lifecycle management as part of a project.

Contract specialists create contracts and amendments within a project, capture all contract meta-data, documents and notes and manage contract announcements. Price file versioning is managed, along with the contract, with the ability to push final version item files directly into ERP systems.

Notifications are sent to the relevant stakeholders as a contract approaches expiration.

Benefits

  • Significant cost savings through better contract management
  • Easy to institute best practices across the hospital system
  • Faster approvals as workflow efficiency improves
  • Stakeholder input increases
  • Standardization of contract process across hospital system

Features

  • Workbench provides seamless contract management from creation to administration
  • Collaboration tools encourages input from all key stakeholders
  • Instant access to needed documents
  • Secure environment protects your crucial data
  • Workflow automation and e-signature service included
  • Documents are stored in an electronic repository

Case Study

A hospital system had several systems for capturing contracts; supply chain had a legacy system, legal had a third party system and partial contract information was captured within the materials system. There was no single view as to what contracts were expiring by specialty or service line resulting in missed expiration dates and lost negotiation power. Not all contracted items were loaded into the materials system and those that were had missing key data. The contracting process was email based with each contracting specialist adopting a different process for managing communications, status updates and documents. The handoff to legal was cumbersome and while SLAs existed it was difficult to track and measure. Document and price file versioning was managed on shared drives, vendors did not comply with standard price file formats resulting in additional work for the data teams.

The internal stakeholder perception was it was taking too long to contract and even once the contract was executed the load to the materials system resulted in unnecessary additional time.

As part of the VMS deployment, the SpendVu deployment team received data extracts from all contracting systems, and using data matching tools created a single searchable repository of contracts and associated items. Contracting specialists had immediate visibility into upstream research, analysis and sourcing activates and could better plan workload. Also now Contract Specialists meet weekly to review the contract expiring reports to ensure a project is created around expiring contracts be it an RFP or a simple amendment.

All contract specialists manage their workload and tasks within VMS. Documents and price file versions are stored within the contract on VMS. The data team no longer having to manually update the material master have additional time to ensure item descriptions, UNSPSC and GL codes are attached to items. Item master clean-up is underway due to the ease of searching and viewing contracted item information within VMS. Times for the overall contracting process are tracked including redline out to vendor (which turned out to be a significant amount of time for certain contract types) and a contracting time baseline for each contract type is now established.

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