Weekly Business Insights 04/22/2025
Why Healthcare Needs AI for Contracts. 8 Excellent Ways to Start Automating Healthcare Contract Management. Healthcare Contract Management Software: Unlock Revenue & Lift Staff Burden with Automation.
Why Healthcare Needs AI for Contracts
Many healthcare organizations still depend on outdated contract management modules bundled into broad healthcare management platforms. These systems, often described as mile-wide but inch-deep, lack the depth needed for modern contract lifecycle management (CLM). Now is the time for healthcare providers to transition to AI-powered CLM. With automation, efficiency, and powerful contract insights, healthcare organizations can streamline operations, improve compliance, and reduce administrative burdens.
For years, many healthcare organizations have managed contracts using add-on modules within larger healthcare management platforms. These solutions often include patient scheduling, medical records management, and staff licensing, helping healthcare providers manage a range of operational needs beyond contracting. However, unlike dedicated CLM solutions, these legacy tools lack AI-powered contract analytics. AI-powered contract management is already used in other industries, automatically pulling key details from contracts quickly and accurately, both before and after signing.
AI-driven CLM platforms send automatic renewal reminders, track credentials and licenses, provide compliance insights, and make audits easier. As a result, healthcare organizations are increasingly making the switch to AI-powered CLM. Those that haven’t yet done so are wise to start exploring the benefits they’re missing.
Why Healthcare Needs AI for Contracts
8 Excellent Ways to Start Automating Healthcare Contract Management
In healthcare, contracts are integral to employment, care transfer, technology licensing, experimental treatments, confidentiality, telehealth, and more. Yet managing them can be frustrating. Disorganized shared folders and drives, countless spreadsheets, overflowing filing cabinets with no labels – no wonder contract mishaps occur so often.
For over five years, poor contract management has cost companies 9 percent of their annual revenue. From start to finish, a single contract can consume 40.5 hours of your time. You simply cannot afford to dedicate an entire work week to one contract.
While automating healthcare contract management is obviously helpful, the concept can be difficult to grasp. Put simply, a CMS is like an entire healthcare team wrapped into one piece of software. Just like the people on your team, each role performs different functions to support the healthcare facility. Delegation frees you from menial tasks. That begs the next question: What can a CMS automate?
That includes: Contract Requests and Creation, Contract Negotiation and Approvals, Signing Process, Workflow Automation, Milestone and Obligation Tracking and Alerts, Contract Compliance, Progress Reporting, and Contract Lifecycle Management
8 Ways for Automating Healthcare Contract Management
Healthcare Contract Management Software: Unlock Revenue & Lift Staff Burden with Automation
Can you imagine a healthcare system with $2 billion in net revenue and 15,000 staff members letting their contracts go 12 years before reviewing them?
Many healthcare organizations haven’t looked at their contracts for five years. An MGMA Stat poll reveals that 33% of providers do not review their contracts yearly. Specifically, 17% NEVER review them, and 16% review contracts every 2 to 3 years or more. 58% do review contracts annually – not bad. Still, given the time and energy it takes to make sense of contract data, most do not work up the critical insights that contract management software comes up with within minutes.
Contract management software plays a crucial role in value-based healthcare organizations by facilitating the management of intricate and evolving value-based agreements. It enhances the ability of these organizations to track adherence to the detailed requirements of value-based care contracts, improve financial outcomes by managing reimbursement rates more effectively, and guarantee the precise and prompt execution of contract terms. This software aids organizations in managing the complexities of value-based payments with an emphasis on patient results and cost-effectiveness.