Importance Of Vendor Management And Management Systems

1385 Words6 Pages
Importance of Vendor Management Many healthcare organizations rely on vendors for processing and maintaining data, performing operational, analytical and support services for day-to-day business and clinical procedures. Effective vendor management can not only save time, money and resources up front, but also prevent the organization from future liability. Vendor management includes areas such as communication, contract management and vendor risk management. HIPAA, Privacy Act and other major healthcare laws put emphasis on security of healthcare data and information. A major or minor breach can cause an organization to face legal liability that can lead to loss of goodwill (Healthcare Information and Management Systems Society, 2015). The organization may also be required to take corrective actions, resulting in waste of time, money and resources. Moreover, delay in progress of developing and implementing a project can place a considerable financial burden on the organization; as a result, it is imperative that organizations maintain effective vendor management systems and processes. Decision Regarding the New Billing System The IT steering committee has determined that the Central Texas Medical Center needs a new billing system, and the complexity of this new billing system is heightened due to the fact that the organization cash flow depends on the billing department. After considering the budget, staffing requirements, and time constraint, outsourcing the
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