Vendor Management: A Vital Component to Risk Mitigation

Risk mitigation involves many moving parts, including your employees. However, your employees are not the only human element affecting your potential for liability. Your vendors also need special consideration. Luckily, one of CARE’s industry partners, OmniSure,(1) has compiled a list of recommendations(2) for managing the risk exposure derived from working with third-party vendors.

Tips include:

  • Confirm that a current, signed contract or agreement is on file  
  • Maintain documented proof of current liability insurance
  • Create a process to ensure vendors are compliant with regulatory requirements, licensure, and liability coverage  
  • Verify that all independent contractors have a Federal Tax Identification Number
  • Keep copies of current professional liability and worker’s compensation insurance
  • Ensure each provider’s current license is on file  
  • If applicable: maintain current CLIA waiver to do lab work  
  • Keep contracts and agreements with supporting documentation in a centralized, secure location

OmniSure also has videos and podcasts about vendor relations if you would like more information from them.

The Office of Inspector General (OIG) and the Department of Health & Human Services (HHS) have information, tips, and a searchable database(3) you can use so you can be confident in the liability you’re assuming when you hire vendors. Since the OIG has the authority to exclude individuals and entities from federally funded health care programs, you’ll want to check their LEIE (List of Excluded Individuals & Entities) database for vendors or contractors you plan to utilize at your facility.

If you don’t already have one, create a formalized process for performing due diligence on potential vendors and subcontractors. A documented process serves as the first layer of risk mitigation by ensuring that all new agreements go through the same vetting process. The next step is to train all personnel on this process so that nothing goes unnoticed or undone in the future.

Contact us today. We can review your professional liability policy to see if your current coverage provides protections for vendor liability.

Footnotes

  1. https://www.riskfitness.com/
  2. https://www.riskfitness.com/vendor-management-recommendations?cid=85fab4ed-3196-4e75-8828-a8ba9e4067ad
  3. https://oig.hhs.gov/exclusions/index.asp

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