Charlotte Jennings, Software Developer04.12.24
Medical technology thrives on innovation, but such progress cannot be made without accurate and watertight contracts. Driving revenue and hitting profit targets is crucial for maintaining success in medtech; however, varying pricing models, regulations, evolving technologies, and diverse clientele create a complex web of agreements. MedTech Intelligence notes that the medical device industry has multiple price models, including volume-based, tiered, exceptions, and more, and pricing can vary widely according to contracting schemes. Multiple contracts for quoting or pricing can also be at their disposal, displaying varying price data. As such, these contracts become increasingly intricate.
While these complex contracts are essential for solidifying pricing and ensuring compliance, they are also harder to manage. Without the proper management procedures, they can stifle growth, cause a loss of revenue, impact customer satisfaction, and jeopardize reputation. Here are some ways medtech companies can manage complex contracts for seamless operations, consistent compliance, and improved relationships.
While these complex contracts are essential for solidifying pricing and ensuring compliance, they are also harder to manage. Without the proper management procedures, they can stifle growth, cause a loss of revenue, impact customer satisfaction, and jeopardize reputation. Here are some ways medtech companies can manage complex contracts for seamless operations, consistent compliance, and improved relationships.
Automation
Many medtech companies traditionally rely on manual processes for managing contracts, such as documents, emails, and spreadsheets. However, such tedious processes can make it harder for companies to analyze data, make crucial decisions, and prioritize growth efforts. Manual procedures can also increase the chances of errors and inaccuracies, which can be costly mistakes for a business.
Automation provides a cutting-edge solution to minimize manual workload and ensure smoother contract management and renewal. Softrax’s contract renewal management software demonstrates how this technology ensures contracts are renewed on time and for the right amount, regardless of the complexity of variations in each contract’s attributes. Insights from Forbes also highlight that the solutions running on these platforms stay current on security, privacy, and regulatory requirements, which is crucial in the highly regulated healthcare industry. As such, automation can take care of contract management and compliance while the company can spend time and effort on developing the business.
Automation provides a cutting-edge solution to minimize manual workload and ensure smoother contract management and renewal. Softrax’s contract renewal management software demonstrates how this technology ensures contracts are renewed on time and for the right amount, regardless of the complexity of variations in each contract’s attributes. Insights from Forbes also highlight that the solutions running on these platforms stay current on security, privacy, and regulatory requirements, which is crucial in the highly regulated healthcare industry. As such, automation can take care of contract management and compliance while the company can spend time and effort on developing the business.
Collaboration
Inefficient contract management strategies can leave some teams and departments in the dark regarding pricing, renewals, and revenue. The lack of uniformity and limited information on contracts and revenue can cause confusion and miscommunications, especially with complex contracts. Aside from internal obstacles, a lack of proper contract management and transparency in the process can frustrate customers, souring relations. In the medtech industry, poor collaboration and communication can be costly, considering that life-saving and enhancing technology requires stability and security for customers to continue its use.
Fostering open communication between finance, legal, sales, and regulatory teams involved in contracting can help with managing complex contracts. Different perspectives can identify potential issues early on and allow for increased visibility and transparency across the company.
Collaborating with customers or vendors can also ensure contract terms align with expectations. Open discussions that discuss terms, pricing, renewals, and more build trust and avoid future disagreements. Merrit Williams of Westfall Technik points out that even suppliers or OEMs can benefit from collaboration, as both sides tend to bring baggage from previous agreements or have to balance corporate mandates, so communicating to arrive at an equitable arrangement can begin the partnership and generate revenue for each party.
Fostering open communication between finance, legal, sales, and regulatory teams involved in contracting can help with managing complex contracts. Different perspectives can identify potential issues early on and allow for increased visibility and transparency across the company.
Collaborating with customers or vendors can also ensure contract terms align with expectations. Open discussions that discuss terms, pricing, renewals, and more build trust and avoid future disagreements. Merrit Williams of Westfall Technik points out that even suppliers or OEMs can benefit from collaboration, as both sides tend to bring baggage from previous agreements or have to balance corporate mandates, so communicating to arrive at an equitable arrangement can begin the partnership and generate revenue for each party.
Data Visibility
Medtech companies don’t have to settle for overly complex contracts with no room for growth. Leveraging data analytics to identify trends in contracts and pricing models can help optimize future arrangements and maximize revenue potential. Seeing how contracts perform based on data and price history can help medtech organizations streamline their contracts for clearer terms, updated pricing models, and personalized agreements.
This increased data visibility for contract management can also offer insights into the efficiency and clarity of your contracts and how to improve operational efficiency and or develop and create new product bundles priced and charged with the best model. Medtech companies can glean which packages or pricing models may be performing the best and incorporate this information into improved future contracts.
By implementing these strategies, medtech companies can navigate the complexities of contract management, mitigate risks, maximize revenue opportunities, and build stronger relationships with customers, all leading to business growth. More growth also leads to more contract opportunities; Medtech systems like Avail have experienced such growth due to the many contracts signed in partnership with healthcare providers to improve collaboration. Complex contract management can propel development, allowing medtech businesses to enhance their offerings and help more people.
This increased data visibility for contract management can also offer insights into the efficiency and clarity of your contracts and how to improve operational efficiency and or develop and create new product bundles priced and charged with the best model. Medtech companies can glean which packages or pricing models may be performing the best and incorporate this information into improved future contracts.
By implementing these strategies, medtech companies can navigate the complexities of contract management, mitigate risks, maximize revenue opportunities, and build stronger relationships with customers, all leading to business growth. More growth also leads to more contract opportunities; Medtech systems like Avail have experienced such growth due to the many contracts signed in partnership with healthcare providers to improve collaboration. Complex contract management can propel development, allowing medtech businesses to enhance their offerings and help more people.
Charlotte Jennings is a software developer with a keen interest in everything health tech-related. Keeping up with trends is her hobby and writing about innovative solutions is her forte.