Managing and understanding the ins and outs of all contracts may be daunting for some providers, as if they are trying to navigate a labyrinth. That’s why David F. “Buddy” Bacon Jr. joined MediTract, a contract management and software provider, as CEO last year.
Previously, he was the co-founder and CEO of Meridian Surgical Partners, an ambulatory surgery center company. Mr. Bacon made his way to MediTract because he wanted to partner with hospitals to ease the burden of general and administrative tasks, like contract management.
Bret Bissey, FACHE, senior vice president of compliance services at MediTract with more than 14 years of experience in the compliance space, also joined the company from the provider sector to assist in improving contract compliance at hospitals.
Here, Mr. Bacon and Mr. Bissey explain how hospitals can benefit from consolidating their contract management into one solution.
1. Improved compliance. The regulatory burdens placed on hospitals today stretch far and wide. The Stark Law and Anti-Kickback Statute have become major points of emphasis for the federal government as officials look to crack down on any fraud and abuse associated with Medicare and Medicaid providers.
Unfortunately for hospitals, falling out of compliance with state or federal regulations is often not due to intentional negligence, Mr. Bacon says. Rather, hospitals may lose track of important contract details, such as fair market value agreements and physician services deals.
Approximately 1,300 hospitals work with MediTract, and they are able to mitigate those risks through a centralized repository and the use of different software tools.
“Our systems assist, via technology, our clients to manage contracts so they can maintain compliance and so they don’t find themselves in violation of Stark Law or the Anti-Kickback Statute,” Mr. Bacon says.
2. Better organization. It’s not uncommon for a hospital contract to be missing a signature or to be misplaced, potentially withering away unaccounted for in the corner of a drawer. Having important business documents in one central, electronic location gives hospital leaders the peace of mind that processes are more systematic.
“Hospitals are busy. Physicians are busy,” Mr. Bissey says. “Someone may forget to sign a [contract] not with intention, but people may miss things. This type of behavior, if not monitored, can lead to regulatory risk.”
3. Saved money. Real savings can be realized if hospitals improve their contract management.
For example, one hospital system using MediTract was able to save $140,000 annually by negotiating a new rate for physician recruitment services. Hospitals can also save money by ensuring managed care payers stick to scheduled rate adjustments and avoiding overpayments on expired agreements.
“It truly helps hospitals keep their contract processes more efficient and effective,” Mr. Bacon says.
More Articles on Hospitals and Contract Compliance:
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5 Questions Hospitals Should Ask Before Acquiring a Physician Practice
