Closing the gaps in pathology contract management: how AI can transform outcomes

In the complex world of pathology services, high contract performance is completely non-negotiable. Pathology and rapid diagnostics will likely be at the frontline of NHS services for years to come, with Trusts and services evolving to meet ever growing requirements in the hospital and in the community.

Yet behind the scenes many NHS trusts and public sector organisations face persistent challenges in managing contracts that underpin these vital services, which coupled with increasing pressures to deliver savings make effective financial management of these contracts essential. Fragmented data, manual processes and limited visibility across supplier relationships often lead to inefficiencies, missed opportunities and charges not in accordance with the contract. Coupled with ever changing requirements in terms of equipment and tests, there are significant opportunities for confusion and error.

At the heart of this issue lies a fundamental question: how can we ensure that pathology contracts deliver on their promise, without becoming a financial burden?

The cost of poor contract management in pathology

Pathology services rely on a web of suppliers, from diagnostic equipment providers to courier services and specialist labs. When contracts are poorly managed, the impact is felt across the system:

• Budget overruns from untracked spend or missed renewal dates
• Compliance risks from outdated documentation or lack of audit trails
• Limited agility in responding to changing clinical needs or innovation

These issues are not just operational, they affect patient outcomes, staff morale and public trust.

AI-powered procurement: a smarter way forward

Capita is helping public sector organisations rethink how they manage contracts, using AI and automation to bring clarity, control and confidence to procurement.

Here’s how:

• Contract intelligence: AI, when configured and utilised in the right way, can scan and interpret thousands of contract documents, extracting key terms, obligations and risks. This enables procurement teams to act proactively—whether renegotiating terms, flagging compliance issues or identifying cost-saving opportunities.
• Information formatting: One of the key blockers to effective contract management is data opacity, which makes review of contractual spend data impossible without dedicating weeks to the review. AI automation can collate and format the data in a matter of minutes.
• Data-driven decision making: With centralised dashboards and real-time analytics, teams gain full visibility across contracts, suppliers and spend. This empowers better decisions, faster responses and stronger governance.

Ready to explore how AI can transform your pathology contract management?

For further discussion or to learn more about our approach, get in touch with the Capita procurement solutions team today.