Managing contracts effectively is a cornerstone of running a practice efficiently, ensuring value for money, operational continuity and strong relationships with suppliers
CREDIT: This is an edited version of an article that originally appeared on Ward Hadaway
The Crown Commercial Service (CCS) recently published a Contract Management Framework Summary, offering guidance primarily aimed at larger public-sector contracts. However, the principles it outlines are highly relevant for practices and healthcare settings, regardless of contract size. By applying the below strategies, practice managers can strengthen relationships with suppliers, ensure value for money and safeguard operational continuity.
Understanding and Owning Your Contracts
The first step in successful contract management is knowing exactly what contracts exist, who is responsible for them and how they are intended to function. This includes ensuring there is a smooth handover from procurement to day-to-day management. Allocating resources and responsibility in advance ensures that everyone involved understands their role and the expectations placed upon them.
Clarity in Roles, Accountability and Governance
Clear lines of accountability are essential. Each contract should have an identified owner and a documented management plan. Governance structures should be proportionate to the scale and risk of the contract, ensuring that operational and strategic oversight is in place. This approach reduces ambiguity, supports compliance and provides a framework for managing challenges as they arise.
Prioritising Outcomes Over Process
Contracts should be managed with the end goal in mind, whether that is uninterrupted supply of medical equipment, IT support, or facility services. Practice managers should engage both operational and financial teams to ensure that contracts deliver the intended outcomes, and that any changes during the contract lifecycle are properly managed to maintain service quality.
Measuring Performance and Encouraging Improvement
Regular evaluation of contract performance is crucial. Using both quantitative measures, such as service-level agreements, and qualitative insights, like user feedback and supplier engagement, practice managers can ensure contracts remain effective. Proactively addressing performance issues and encouraging innovative approaches strengthens supplier relationships and maximises value.
Collaboration and Integrated Teams
Complex contracts benefit from a collaborative approach. Treating the supplier as a partner, and integrating them into practice operations where appropriate, helps ensure alignment. Engagement with broader NHS supplier relationship management practices can provide additional oversight and guidance, helping to anticipate risks and seize opportunities for improvement.
Embedding Commercial Awareness
A sound understanding of commercial principles supports effective contract management. This includes knowing what motivates suppliers, balancing cost and quality, and making informed decisions that protect the practice’s financial and operational position. Confidence in using contractual tools, such as performance clauses or change mechanisms, ensures the practice can respond swiftly to challenges and adapt to evolving needs.
Applying these principles allows practices to manage contracts confidently and strategically, turning procurement into a tool for operational success rather than a compliance exercise.
