About Company
Lumeris is a managed services operator specializing in value-based care in the healthcare industry. It is one of the pioneering frontline organizations supporting the paradigm shift from a volume-based 'pay' driven system to a value-based ' reward' driven system.
Lumeris plays a significant role in helping health systems and providers achieve better clinical and financial outcomes by promoting high-quality, cost-effective care that satisfies consumers and engages physicians. It is noteworthy that Lumeris predominantly has buy-side contracts for the procurement of services.
Key Customer Challenges
Limited Visibility into Legal Processes
The existing Lumeris contract process needed to be more mature and manual, which led to several challenges for its legal team. The team responsible for crafting confidential contracts and reviewing third-party contracts grappled with a need for more transparency in its workflow. Besides, the high dependency on legal to draft contracts and the need for more insights led to a substantial strain on the legal team. This resulted in delays owing to their heavy workload and a restricted understanding of the broader operational landscape.
Risk of Misunderstandings and Disputes
Lumeris was deeply concerned that contract misunderstandings and misinterpretations could lead to legal disputes and significant financial losses for the company. For example, a poorly defined payment terms clause could result in delayed payments or financial penalties.
Vendor Onboarding Challenges
Lumeris was lacking a true 360°-degree view of their suppliers, services available, and supplier performance. They faced critical challenges in getting vendor details reviewed by their Vendor Management and FP&A Teams when requesting a new contract with a New Vendor. Delays and inefficiencies in the vendor onboarding process impacted the company's ability to initiate new contracts and partnerships.
Lumeris was exploring a centralized solution to streamline the vendor onboarding and contracting process and mitigate these challenges.
Approach
Lumeris works with large healthcare players and reputed institutions, developing healthcare innovations and focusing on processing third-party contracts. Aavenir's Contract Lifecycle Management solution was a perfect fit to overcome Lumeris' challenges, so Lumeris adopted Aavenir's Contractflow to enhance its contract management process.
Aavenir Solution
- Self-Author Contract by Legal Team
Besides managing vendor contracts, Lumeris' legal team can now create contracts (Business Associate Agreements, Independent Contractors, MSA being the most common contract types) while maintaining confidentiality with restricted access to specific users.
- Timely Auto-Renewal of Contracts
With Aavenir Contractflow, the legal team can rely on the system to automatically renew contracts based on predefined terms, eliminating the need for manual intervention. This ensures that contracts are renewed promptly, significantly reducing the risk of missed renewals.
- Automated Alerts and Real-time Updates
The solution provides automated alerts for missing information (30-60-90 days reminders for renewals and signatures), minimizes the risk of expensive errors and potential legal conflicts. Real-time alerts allow Lumeris to identify bottlenecks in the contract management process and take corrective actions promptly.
- Vendor Soft-Onboarding
Aavenir Contractflow and the Request-to-Contract Management process enabled Lumeris to conduct soft onboarding for vendors while maintaining the essential review process. Lumeris can submit contract requests, review counterparty information electronically, and maintain audit trails.
Once the process is complete, Aavenir Contractflow updates vendor details in the ServiceNow Vendor Master (a core component of Lumeris' system), simplifying vendor management and improving overall efficiency.
"The Aavenir team has taken the time to understand Lumeris’ particular needs, and has put in exceptional effort to ensure that, as implemented, Aavenir Contractflow generates efficiencies in our complex workflow."
-Peter Rasche
Associate General Counsel, Lumeris
Results and Outcome
- Aavenir Contractflow, powered by automated workflows, has helped Lumeris improve efficiency (mainly transparency and accountability in their contract management operations) by 30 percent.
- Lumeris could quickly optimize its contract lifecycle management within a month by integrating Aavenir Contractflow into its operations.
- Aavenir Contractflow, using automated workflows, has significantly reduced the time required to process contracts by 80 percent - enhancing collaboration between different departments involved in the contract lifecycle process. This streamlined process reduces Lumeris' contract turnaround time from weeks to days.
- Since the implementation of Aavenir Contractflow, Lumeris has benefitted extensively with 'zero percent' missed renewals and expiry sans any manual intervention. It has also empowered Lumeris to save time on re-negotiation and renewals on contract expiry - especially on contracts with routine or predictable terms, ensuring continuity of services without interruption.
