The Client Challenge
Faced with the financial pressures of the pandemic, Indiana-based Franciscan Alliance needed to find untapped savings in nonclinical areas. As with most health systems, IT contracts were a material expense category for the 14-hospital health system. Franciscan Alliance sought to uncover savings opportunities and improve their decentralized, manual IT contract management process. Building a more financially sustainable future required a more holistic approach to improved contract life cycle management that included supporting tools and alignment with operational objectives.
OPPORTUNITIES TO REALIZE SAVINGS:
- Stronger contract terms
- Higher service quality
- Contracted discounts
- Greater performance accountability
- Maximized negotiating windows
Navigating to Next: The Solution
The Chartis Group partnered with Franciscan Alliance to conduct a structured review of contracts by spend to identify, quantify, and prioritize savings opportunities. The team analyzed more than 40 contracts for redundancies, overpayments, and discounts, as well as opportunities for consolidation and ways to better capture performance and value. The team then formulated a comprehensive contract management strategy that included contract consolidation and renegotiation of contract terms, costs, and payments. To foster long-term results, the team defined performance standards and established tools and processes to drive active management throughout the contract life cycle — from intake and review through administration. This optimization encompassed tracking, escalation terms management, renewal, termination, and service controls.