Why Insurance Companies Should Use Contract Management Software

Written by Lindsey Paulk

Today, health insurance companies encounter difficulties in terms of reducing costs for clients and maintaining compliance in accordance with various governmental bodies.

With insurance contract management software, these insurers can take on these difficulties and utilize the solutions that such software provides. Insurance contract management software can help insurers to improve the performance of their provider contracting. This is made possible when insurance companies are engaged in contracts with several groups of hospitals and individual physicians, where all of which are functioning within the network of the payor. Essentially, contracts are what build the networks referred to in commonly heard phrases in the health insurance industry, such as “in-network” and “out-of-network."

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Issues Faced in Provider Contracting

The negotiation and execution of contracts by health insurance companies and provider organizations with various groups of hospitals and physicians is a detailed process. In these types of contracts, payment procedures and costs are outlined, providing all the details regarding what insurance companies are required to pay providers for visits, procedures, and other services. For effective management of provider contracts, an insurance company is required to confirm that medical professionals they are engaged in contracts can provide sufficient qualifications. Additionally, insurance companies must keep records of pricing metrics so they can effectively regulate and systematize how much each service costs. Another item that insurance companies are required to manage includes maintaining archived records and documentation of every account within the system. These items are just a few examples of a broad landscape of tasks and actions managed by insurance companies. An insurance contract management software system helps streamline the entirety of contract-related tasks within an insurance company.

In traditional, manual contract management systems, all of the aforementioned processes are conducted in isolation from one another. In this manner, contracts are often sent off between departments within the insurance company several times over until the contract is ready for execution. In this type of manual contract management system, tracking versions and the latest iteration of a contract or related document can prove to be difficult. Oftentimes, several versions of the same contract will be entrenched in the contract management system, bouncing between different departments, causing miscommunications, confusion cross-organizationally, and potentially – document and data misplacement or loss. This directly increases risk and the potential for substantial financial liabilities in the future. It’s also important to note that critical action steps regarding contracts could very well go unperformed in an outdated, manual contract management system when an insurance company regularly works with a large volume of highly complex and detailed contracts for thousands, or even hundreds of thousands of clients. Without having a contract management system that provides a dashboard with the status of your contracts and where they are located within their lifecycle, it will be very inefficient and time-consuming when communicating such information to other individuals involved on the contract. Without this, how can you communicate where in within an approval or negotiation process that a contract is standing? With modernized insurance contract management software, you make the regular communication and collaboration that much more streamlined and effective when all the information is within reach.

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How Insurance Contract Management Can Streamline and Optimize Provider Contracting Processes

With the proper insurance contract management software solution, you can develop high performing and productive contract management within your insurance company. This is because insurance contract management software places all contracts, legal agreements, and other related documents into a cloud-based, centralized contract repository so your contract management teams has every single detail (down to specific clauses) in one central location during contracting operations. Here at Dock 365, our Contract Management System is equipped with several features and revolutionary integrations to make contract management remarkably easy for your insurance company. In this way, our software solution can seamlessly integrate with many of your existing systems that span across your organization so that critical contract data is distributed and stored in the correct places and to the correct people.

Notable Benefits of our Contract Management System

  • Visibility and transparency – keep tabs on the status and location of every contract
  • Automated notifications – never miss a deadline by enabling notifications, alerts, and reminders
  • Maximized security – cloud-based contract storage, data encryption, and permissions-based accessibility keeps data protected
  • Enhanced collaboration – collaboration and communication has never been easier
  • Workflow automation – fast approvals, negotiations, and contract signing that create speedy turnarounds and optimized contract lifecycle management performance 

Appropriate levels of visibility and transparency of contracts is essential. This is because it can help insurance companies pinpoint areas that need improvement so they can adjust and take actions that will benefit overall operations. An example of this in action would be the ability to conduct a filtered search that spans over a large quantity of contracts to identity where pricing errors are occurring according to various factors such as provider or location.

With insurance contract management software, you can centralize insurance contracts that span across various facilities and departments. Contract reviews will be faster, and documents will be stored in a highly secure repository that follows organization compliance standards and policies. In the end, the result will be improved performance, maximized productivity, and drastically reduced risk. Insurance companies greatly benefit by contract management software in their efforts to build, execute, track, and manage various insurance-related contracts and documents. At the core of an insurance policy lies a legal agreement (contract) between the insurance carrier and the policy holder – which is where contract management plays a role. Many professionals in industries such as healthcare, insurance, and legal are required to create contracts for providers (i.e., physicians) under such an agreement. These industry professionals additionally issue contracts (insurance contracts) to various policy holders. With these concepts in mind, it’s necessary that these professionals have an optimized method for building, executing, and tracking contracts within their companies.

Conclusion

Contract management software can be customized for your business’s unique needs, key objectives, and scalability potential. By using the most optimal contract management software equipped with SharePoint and Microsoft Office 365 integrations, you can take your contract management process to the next level.

SharePoint can greatly enhance your contract management system. SharePoint can amplify the functions of your contract management solution with its various features that will increase collaboration, productivity, efficiency, and results in real-time. For secure, accessible, and efficient contract management, we highly recommend adding SharePoint to your business’s system.

We welcome you to leverage all the benefits that our Dock 365 Contract Management System has to offer. Maximize results, increase collaboration, boost productivity, and improve return on investment in your business with our SharePoint-based Contract Management System.

If you would like more information, we welcome you to schedule a free demo with us today.

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