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Administrative and operational responsibilities in contract management
1Ernst & Young, West Region Los Angeles Health Care Practice.
Topics in Health Care Financing
|January 1, 1993
Summary
Clear communication in healthcare contracts is essential. Formalizing contract terms verbally and in writing improves implementation and reduces dissatisfaction for payers, patients, and staff.
Area of Science:
- Healthcare Administration
- Organizational Communication
Background:
- Contract negotiation by finance and marketing executives often results in terms that are challenging to implement.
- Healthcare contract implementers frequently lack awareness of the specific terms negotiated.
Purpose of the Study:
- To highlight the impact of communication breakdowns in healthcare contract negotiation and implementation.
- To propose formal communication strategies to improve contract execution and stakeholder satisfaction.
Main Methods:
- Analysis of common issues in healthcare contract negotiation and implementation.
- Review of communication protocols within healthcare organizations.
Main Results:
- Contracts negotiated by non-operational executives can be impractical.
- Lack of awareness regarding contract terms among implementers is a significant issue.
- Formal communication minimizes payer, patient, and internal dissatisfaction.
Conclusions:
- Implementing formal verbal and written communication strategies is crucial for effective healthcare contract management.
- Improved communication alleviates internal stress and external consumer displeasure, enhancing overall organizational function.