When investing in new technology, Kaleida Health's Jeannine Mages employs a key strategy to ensure vendor accountability: putting them "at-risk."
Investing in new revenue cycle technology, particularly unproven AI solutions, can be a gamble. A new tool can fail to deliver on its promised ROI, but health systems are often locked into multi-year contracts that are difficult to exit, leaving organizations paying for an underperforming asset for years.
How can leaders mitigate this risk? In this HL Short, Jeannine Mages, Vice President of Clinical Revenue Cycle at Kaleida Health, shares her strategy for ensuring vendor accountability. She explains why she pushes for "at-risk" contracts, a model that creates a "true partnership" and provides a clear exit strategy if a solution doesn't meet expectations after a set period of time.
Luke Gale is the revenue cycle editor for HealthLeaders.
KEY TAKEAWAYS
When implementing new software, especially unproven AI solutions, negotiate an "at-risk" contract to give your organization leverage if the technology underperforms.
An at-risk model creates a true partnership, ensuring the vendor is invested in helping your organization identify opportunities and achieve its goals.
Avoid getting locked into long-term contracts for new tools. An at-risk agreement allows you to pilot solutions and "cut losses a little bit sooner" if they fail to deliver results.