The new age business processes make use of data and communication tools within and outside the organization to facilitate improved, instant communications. The medical and healthcare sector today is getting more dependent on business solutions and skills outside their core business areas for business growth and expansion.

1. Benefits of Having an Effective Vendor Management System
The new age business processes make use of data and communication tools within and outside the organization to
facilitate improved, instant communications. The medical and healthcare sector today is getting more dependent
on business solutions and skills outside their core business areas for business growth and expansion. Furthermore,
globalization has made it easy for the vendors to be engaged in various business transactions thereby gaining
access to critical business data, private health information of the workforce and many more.
Vendor Management System (VMS) can be defined as a discipline that has become an integrated process for the
overall business management in an organization. Therefore, the privacy and security of data access and transfer
has become more crucial than ever. Effective vendor management process helps organizations to monitor costs,
achieve service excellence, and also understand and mitigate the risks involved in data sharing with the third party
solution providers. Therefore, the ability to have a clear understanding of the multiple aspects in an outsourcing
lifecycle helps in determining the success of vendor management.
Service providers in the medical and healthcare sector, like the insurance clearing houses, organizations managing
healthcare solutions and carrying out clinical trials using PHI (Patient Health Information), directly or indirectly are
known as a “Covered Entity” or “Business Associate”. The big and small medical providers and hospitals needs to
fulfill the HIPAA/HITECH compliance guidelines to maintain IT security and compliance. For this a systematic
vendor management process needs to be implemented.
Advanced Vendor Management Solutions
Keeping all these aspects in mind, service providers of compliance management solutions have come up with
advanced vendor management solutions to ensure that a medical company and its outsourced vendors stay
compliant. The solution helps to:
Automate the monitoring of technical controls and sensitive data.
Monitor risks with a Vendor Manager.
Evaluate vendor risks by using multiple assessment types and library of questions depending on the best
practice standards.
Attain risk, IT security and compliance by rating vendors from assessment results.
Assess vendor compliance to procedures and regulations.
Track and identify non-compliance areas.
Modern economic development has propelled most medical organizations and healthcare providers to focus on
the risks regarding supply chain and their services. Simultaneously, with the enactment of new compliance policies
organizations are giving more importance to manage their vendor and compliance issues effectively. Hence, a
systematic vendor management system is beneficial for attaining growth, monitor revenues and reduce risks from
all business units.
Read more on - Information Security Compliance, IT risk assessment methodology