Health providers and systems are being prompted to implement more updated contract lifecycle management solutions to adequately address value-based payment, according to a Black Book report.
Black Book, a market research and public opinion research company, polled 1,275 CFOs, financial management and business unit software users at U.S. health systems and provider organizations regarding contract management solutions.
Nearly all respondents (96 percent) said their organization lacks a contract management system and entirely uses manual processes or have a system that is old and cannot adequately address value-based care, researchers said in a news release.
Overall, Black Book projects that health providers and systems spend nearly $157 billion collectively each year on manual contract management.
At the same time, 504 of the 522 provider organization contract managers surveyed by Black Book said that their organization needs a contract management solution by the first quarter of 2020 "to enable a more effective and intelligent transition" from fee-for-service to value-based payment, according to researchers.
"Organizations without updated contract management modeling and analytics software fear being on the losing end (or not being capable of capturing adequate reimbursement) of value-based care agreements," said Doug Brown, managing partner of Black Book. "The other big need by CFOs is automated estimating tools for patient revenue forecasting which their current contract management tools are lacking for value-based care."
Read more about the research here.
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