Legal spend management is a framework for the rules of engagement with law firms to help control cost and ensure you only pay what you owe
As we discussed in Controlling Costs in Your Self-Insurance Program, a legal spend management program is often the best way for self-insured organizations to keep legal costs under control and ensure they only pay what they owe on invoices.
That sounds great on the surface, but how can you even begin to predict the value of a legal spend management program so you can build the business case for implementing one?
That's actually easier to do than it sounds. It's a simple matter of comparing:
What you spend on legal costs now
vs.
What you'd spend if you had a program in place
Okay, so maybe that is a little confusing.
Let's try that again.
The best way to understand the impact of a legal spend management program is to conduct a feasibility study, or spot audit, of your current program.
This test process, where an expert bill review attorney analyzes a subset of your invoices, will identify the accuracy and reasonableness of the charges based on contemporary guidelines and accepted billing standards.
This invoice review, if conducted with a handful of different law firms, will give you an idea of where you can expect to find efficiency throughout your program that will translate into savings.
For example.
In the past 5 years, we've conducted more than 150 feasibility studies for risk management and claims departments of all sizes. That's more than 5,300 invoices with a value of in excess of $38 million dollars!
Read the eBook to learn how you can make the case for a Legal Spend Management Program.
