How Frequently Should Your Organization Conduct Contract Audits

We all know how important physician contract reviews are for healthcare organizations. Understanding your clinician contracts and regularly performing audits can provide valuable information for contract compliance, financial performance, quality of care, and relationship management.

Frequency of Contract Audits for Compliance

But how often should your hospital be conducting contract reviews?

The frequency of contract audits for clinicians will depend on several factors, such as the size of the healthcare organization, the number of physician contracts, and the complexity of the contracts. However, healthcare organizations should conduct regular contract audits to ensure compliance with laws and regulations and mitigate legal risks. Read about some of the key elements of a clinician contract and other healthcare compliance articles on our blog.

Many organizations conduct contract audits annually, while others may conduct them on a quarterly basis. Some organizations may also handle clinician contract audits on a rolling basis, focusing on a specific subset of contracts each year. Ultimately, the frequency of contract audits should be determined by the organization’s risk assessment and compliance monitoring strategies.

In addition to regularly scheduled audits, healthcare organizations should also carry out audits in response to specific compliance concerns or changes in regulations. For example, if a new regulation affecting clinician contracts is enacted, an organization may need to administer an audit to ensure that its contracts are compliant with the new requirements.

It’s important to note that contract audits should not be the only compliance monitoring strategy. Healthcare organizations should also conduct ongoing monitoring of their clinicians’ compliance with contractual obligations, such as billing requirements and quality metrics. This monitoring should be carried out more frequently and not just during annual audits.

During these clinician contract reviews, healthcare organizations may also want to verify that the timekeeping records for your contracted physicians align with the specific contractual obligations of those clinicians. The optimal frequency of these audits should be established based on the organization’s comprehensive risk assessment and compliance monitoring strategies.  Performing a contract review once every few years is not enough – continuous monitoring of clinician compliance with contractual obligations should be conducted on an ongoing basis.

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