3 Factors To Consider in the Opportunity Costs of Your Vendor Management Process
Insurers and TPAs have an obligation to carefully assess the viability of claims submitted for payment. They turn to private investigators to follow up on claimants and ensure they’re not using dollars which could be going towards valid expenses on fraudulent submissions.
The complexity involved in keeping up with the different investigators employed in these efforts can lead to inefficiency in managing time and expenses related to tracking different vendors. How well is your own company doing managing the following pain points accompanying this process?
1. Choosing a Vendor
Many TPAs and insurers like to hire outside firms to conduct investigations to avoid the appearance of any conflict of interest. Choosing this route avoids having any investigative results tainted by any perceived biases of the company.
A lot of firms end up doing lots of manual research and paperwork when it comes to hiring vendors to conduct investigative work on different claims. Workers may have to be pulled off other projects to bear the burden of doing the legwork necessary for finding a vendor experienced in handling the type of claims your business handles. That’s time taken away from other work important to your company.
- Verifying licenses and credential
- Vetting fee schedules
- Getting firm budget agreements
2. Tracking Investigators
The work doesn't end once you’ve found a vendor. Things can quickly spiral out of control if you’re unsure of which investigator a vendor has put in charge of looking into certain claims. That can lead to delays getting timely updates on the progress of investigations. How much time are you losing out on trying to receive vital information needed to make crucial claim decisions?
Smaller insurers often don’t have a lot of staff to spare when it comes to keeping up with the work of private investigator vendors. Different people may end up responsible for getting updates on the progress of private investigators. Relying on paper files, emails, and spreadsheets for information sharing can lead to someone missing out on crucial data or not following up on leads which can change the outcome of a case.
- Receiving timely updates
- Making sure billed fees line up with agreed-upon tasks
- Obtaining organized feedback
3. Reporting Results
The hazards of not having a centralized way of handling various vendors really hits home when it’s time to report out the results of your investigations. Can you currently get accurate figures on how much you’re spending each month? Did you adhere to the budget set out in the agreement you signed?
Not being able to reconcile your expenses related to investigations impacts the financial health of your company. You can’t allow your business to continue paying money needlessly because you don’t have the technology available to prevent this from happening.
Letting Technology Take Over
The costs of trying to do all these things manually with your existing workforce add up quickly. VenAssure VMS (vendor management system) removes the stress of vendor management from the shoulders of your employees in the following ways.
- Easy vendor research – Your workers no longer need to spend hours online or on the phone tracking down the credentials of different investigators. You can narrow your search for the right local vendor by entering a few search terms. We put all the relevant information in front of you to review. Our VMS allows you to make direct contact with the vendor of your choice in minutes. You’re also notified on any upcoming lapses in vendor credentials well before they expire.
- Customized tracking – Create your own business rules for keeping up with the progress of different investigations. The VMS lets you control who gets to view and change permissions in this area. You can also set up alerts and reminders for receiving updates well before any claim deadlines you’re trying to beat. Vendors registered with our tool agree to provide you with timely updates. That means less time being wasted by your employees trying to track them down.
- Streamlined communications – Our tool lets you send messaging back and forth between the vendor and others on your team. You can also share important updates and collaborate on documents stored within the VMS. Everything becomes part of an electronic file, eliminating the need to print and copy communications to load into paper files. You can also share this information with any case managers, nurses, or other professionals related to the case.
- Transparent financials – All budgets and fee schedules remain visible to both sides. You can also keep up with money being spent and intervene before you end up going over your budget. All payments can be made to the vendor within the VMS, making it easy to reconcile your expenses during and after an investigation.
You’re free to create profiles of your preferred vendors and terminate any agreements if you’re not satisfied with the progress you’re seeing. The VenAssure VMS gives you full control over who’s conducting your investigations and a clear view of how well your chosen vendor is managing them.