Vendor Procurement – what’s the big deal?

February 25, 2016, 12:00 PM CST

We believe vendor procurement IS a big deal; and we aren’t the only ones who think so. In the eyes of the law, the vendors you hire, do business and/or contract with are considered an extension of your organization. Therefore, if they are excluded, not in good standing or your organization can’t demonstrate certain required documentation regarding the vendor, your organization is at risk. Following the law and monitoring your vendors on a monthly basis helps eliminate the risk. In our free healthcare webinars, we strive to educate healthcare professionals about various industry trends and best practices. In this webinar, you will learn the state of vendor procurement in healthcare as well as which vendors must be verified and monitored.

A Brief Overview:

Procurement is a complicated job. There are thousands of vendors and third parties to be vetted and then tracked each month. Second, the outdated vendor management software services can’t keep up with today’s procurement needs. They, instead, tend to get in the way.

Developing a master list of current vendors that you’re doing business with is a common problem in procurement management. Why is this a problem? The master vendor list usually resides in multiple locations and is incomplete because there is a lack communication between the many people or departments that gather and come in contact with important vendor information. The absence of a centralized database for procurement records, coupled with incomplete forms, puts your organization at risk of procurement fraud.

What to Watch Out for:

The healthcare webinar will cover this in more detail, along with vendor risk management best practices, but here are a few things to keep an eye out for to eliminate procurement fraud in your organization :

  • Bid-Rigging: price collision
  • Bribery/Kickbacks: false claims and Stark violations
  • False Payer: do you know your vendors?
  • Lack of Checks and Balances: separate job responsibilities/approvals.

Dive into more details on preventing vendor procurement fraud and sign up for the FREE healthcare webinar “Vendor Procurement: what’s the big deal?” next Thursday the 25th at 12:00 pm CST.

Michael Rosen, ESQ

Written by Michael Rosen, ESQ
ProviderTrust Co-Founder,

Michael brings over 20 years of experience founding and leading risk mitigation businesses, receiving numerous accolades such as: Inc Magazine’s Inc 500 Award and Nashville Chamber of Commerce Small Business of the Year
Connect with Michael on Linkedin

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