
At a Glance
- Client: Wellmont Health System
- Industry: Healthcare
- Departments: Contracts Management, Accounts Payable
Challenges
- Managing thousands of contracts across 13 hospitals and multiple departments
- Difficulty locating and updating contracts
- Lack of timely contract renewal notifications
- Overwhelmed accounts payable department with approximately 20 filing cabinets
- Processing around 1,000 checks weekly with extensive documentation
Solution
- Enterprise Content Management (ECM)
- DocStar ECM
- Document Management System
- Centralized digital document repository
Results
- Streamlined contract management with improved tracking
- Enhanced visibility of contract expiration and renewal dates
- Better negotiating position for pricing due to advance notifications
- Simplified document retrieval process
- Significant space savings from eliminated filing cabinets
- Cost savings through better contract management
Thirteen hospitals, 6,000 health care professionals, and tens of thousands of documents to keep track of on an annual basis; managing such an enormous flow of information would present a challenge to any organization. Before the contracts and accounts payable departments at Wellmont Health System switched over to document management from Docstar ECM, the task seemed insurmountable.
Formed in 1996, the Wellmont system now includes more than 1,400 licensed beds and nearly 1,000 physicians serving patients in the tri-state region of Northeast Tennessee, Southwest Virginia, and Southeast Kentucky. As the premier provider of healthcare service grew, so did the demands for back-office support.
An already cramped accounts payable department filled up with about 20 filing cabinets, all of which were stuffed with hard copies of checks and invoices from the previous year. The staff members responsible for monitoring contracts for the entire system found themselves drowning in paperwork.
According to Erin Arnold, contracts analyst for the hospital network, the situation was causing frustration for her personnel—and that frustration eventually spiraled out to other areas of the organization.
“Contracts were scattered all over the place and couldn’t be found,” she said. “They weren’t being updated and we didn’t always know which department they belonged to.”
Given the number of contracts—Arnold said her small staff is responsible for thousands each year—and the multiple departments involved, the process of routing so many different documents using the existing system was becoming unmanageable.
Document Management Changes Everything
With the help of Docstar ECM, Wellmont Health System scanned its contracts into digital format for easy management, and instant retrieval. Efficiency soared and because the agreements were filed in a central location and coded by specific categories, the organization’s bottom line was positively affected as expiring contracts were flagged for review in a timely manner.
“Before we implemented the Docstar solution, we didn’t have a filing system to locate the past, present, and future contracts that were expiring,” Arnold explained. “Now we have a cost-effective way to do that because the expiration and notice dates are identified on all contracts.”
“The reports are easy to access and the contracts are tracked much more effectively,” she added. “We know exactly when contracts are up for renewal and that gives us a heads-up on supply cost increases. It also allows us time to negotiate better pricing in advance.”
The advent of such a high level of control over document management has streamlined operations for Wellmont Health, improving communication between virtually all areas that interact with the people managing contracts.
“This is a very large health system and we have several thousand documents loaded into the Docstar system,” Arnold stated. “They come from purchasing, cardiology, radiology, pharmacy, materials management… every department. This solution has worked extremely well for us.”
Enter accounts payable
The improvements in contract management weren’t lost on Wellmont’s accounts payable department, which also has converted to the document management solution.
“We have 13 hospitals in the system and we pay all of their bills—that’s about 1,000 checks and pages of documentation every week,” said Traci Smith, accounts payable supervisor for Wellmont Health System. “We had been filing hard copies of everything in file cabinets that were taking up a lot of room in our little area. Now we scan all of our documents into Docstar and it’s a very streamlined procedure.”
The learning curve was short, according to Smith, and the benefits were almost immediate.
“The software is really self-explanatory once you get into it,” she noted. “Now all the documents are so easy to retrieve that we’re more efficient with our time.”
The accounts payable team has shared the ease of retrieval with other parts of the Wellmont system, giving them viewing rights for documents related to their respective departments. In the past, the staff in AP would have to field non-stop requests to find hard copies, which required them to drop whatever they might be doing at the moment, locate the right cabinet, and then hope the document had been filed in the correct drawer in the first place.
“With the viewing rights we’ve given them in Docstar, team members from other departments can go in and find what they need right away,” Smith said.