The turnaround time for processing contracts has always been a crucial area of focus in the healthcare industry. Onboarding new providers, renewing contracts, and managing periodic updates from payors require complex reviews and translations to contract management systems. On top of that, the ever-changing business rules, the length and complexity of contracts, and the pressing need for quick and efficient updates only add to the challenge.
Streamlining the complex and tedious contract ingestion process is key for efficient contract management, resulting in faster turnaround times, improved compliance, reduced errors, and ultimately savings millions!
Now that healthcare organizations have started to adopt smart contracts, which are programmable code representations of paper contracts, streamlining contract ingestion has become even more important than before!
Let’s explore the depth of this challenge and look at how Felix Solutions, is revolutionizing healthcare contract management with its cutting-edge AI-powered Contract Ingestion solution.
Understanding the Challenge
The challenge lies in the meticulous review and translation of contracts to a management system, a process that is time-consuming, tedious, and prone to errors. With thousands of business rules in constant flux, ensuring that all contracts are promptly updated and aligned with payor rules poses a significant operational hurdle.
According to the latest Black Book Market Research, nearly $157 billion is dished out annually on manual contract management by healthcare providers! Despite this expenditure, the industry standard for contract analysis via manual review is just 75%, leaving 25% of contracts uncovered and inaccurate.
Moreover, it takes an average of 92 minutes to review a single contract. According to PWC, a company typically has anywhere between 20,000 and 40,000 active contracts at any given time. In the absence of a proper contract lifecycle management (CLM) system, this tedious work is invariably prone to human error. In fact, based on research by IACCM (International Association for Contract & Commercial Management), more than 9 percent of annual revenue is lost due to poor CLM. A 2021 report stated that business leaders at more than half of the organizations surveyed globally claim poor contracting processes have resulted in slower revenue and lost business.
Additionally, it was found that an astonishing 96% of healthcare firms do not have an appropriate contract management system in place!
AI Solutions in Contract Ingestion
Everything from onboarding new providers’ or hospitals’ contracts, to renewals, and periodic updates from payors require thorough review and translation to a contract management system. Industry rules are constantly changing; contracts are long and tedious and time is short – making it even more challenging to ensure that all contracts are updated and in line with payor rules.
Felix’s Contract Manager is a cutting-edge AI and machine learning-powered enhancement to the current contract management process. It works seamlessly to expedite already existing processes with unparalleled accuracy, automate labour-intensive tasks, and deliver accurate results rapidly. These speeds up the overall process exponentially and minimizes the risk of human error.
Impact of AI in Contract Ingestion
By leveraging the power of AI in contract ingestion, legal departments can spend 75% less time reviewing each contract. With its capacity to interpret contracts and extract critical data within seconds, AI enables swift decision-making and cuts down hours of contract review to mere moments!
Let’s take a closer look at the transformative power of AI-driven contract ingestion:
Accurate Data Extraction
The accuracy of data is of pivotal importance in the healthcare industry, which is why there should be no scope for error when it comes to data extraction from contracts. The industry standard for contract analysis via manual review stands at 75%. With AI-powered systems like Felix’s Contract Ingestion solution, organizations can be assured of 100% coverage and accuracy.
Faster Processing Speed
The processing speed of AI tools is incomparably to manual systems. In a matter of seconds, AI algorithms can go through thousands of contracts a day as opposed to only a handful manually. Felix clients experienced a 250%+ increase in processing speed, leaping from 4 contracts per person every day to 1000!By choosing a tool that’s capable of processing more contracts in a shorter timeframe, organizations can save millions in cost efficiencies annually in the contract loading processes.
Enhanced Operational Efficiency
Faster processing times also lead to enhanced operational efficiency by improving business continuity by ensuring the onboarding and renewal processes take place uninterrupted. This also gives the human team more time to focus on exceptions and client interactions.
Elevated Client Experience
With seamless onboarding and renewals, organizations can provide a better experience to clients, fostering stronger relationships and customer loyalty.
Improved Top & Bottom-Line Gains
Potential cost efficiencies result in significant annual savings, positively impacting the organization’s bottom line. For Felix clients, potential cost efficiencies reached up to $7M annually in the contract loading process!
Conclusion
AI-powered enhancements provide unmatched speed, accuracy, and operational efficiency, ultimately translating into significant cost reductions and improved client experiences. Contract ingestion technology is vital for healthcare organizations seeking to enhance efficiency, reduce errors, and ensure compliance in a rapidly evolving and highly regulated industry.
Felix’s Contract Ingestion solution is not just a time-saver; it’s a game-changer for healthcare organizations aiming to streamline their contract management processes. Fine-tune your healthcare contract management with Felix Solutions and experience the transformative power of AI-driven Contract Ingestion.
Visit Felix Solutions to explore how you can enhance operational efficiency and drive significant cost savings in your organization.