decisionhealth Newsletters, Answer Books - 2009 Issue 2 (February)
Contracts and Contract Negotiations / 36-Point Checklist for Managed Care Contracting
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Article Overview
This article outlines a practical checklist for managed care contract negotiations, with emphasis on common contract provisions that affect payment timing, claims handling, utilization review, indemnification, termination, and administrative rights. It is aimed at physicians, group practices, anesthesia providers, and administrators who negotiate with HMOs, PPOs, MCOs, and related payers. The content focuses on broad contract-language issues and negotiation topics rather than coding guidance.
Why This Topic Matters
Managed care contracts can materially affect reimbursement, billing workflow, liability exposure, and the ability to terminate or amend agreements. This checklist helps readers understand the major categories of terms that may warrant review during payer negotiations.
Article Sections
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Payment and payer responsibilities
Covers billing form requirements, payment timing, overpayment handling, rate adjustments, coordination of benefits, claims submission timing, credentialing, eligibility verification, and emergency-related payment issues.
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Utilization review and quality assurance
Addresses medical necessity review, appeals and grievance procedures, and the handling of quality assurance oversight by plans or third parties.
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Insurance and indemnification
Discusses indemnification, liability allocation, patient coverage denials, cancellation notification, and insurance coverage expectations.
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Termination
Focuses on contract termination triggers, insolvency concerns, and material breach provisions.
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General administrative provisions
Reviews broader contract administration topics such as hospital-based negotiations, product participation, rule changes, exclusivity, governing provisions, medical record ownership, promotional use, and renewal terms.
What You Will Learn
- The major categories of provisions commonly addressed in managed care contracting
- How contract terms can affect billing, payment, and claims administration
- Which administrative and legal issues often arise in payer agreements
- What kinds of contract language are often reviewed during negotiation
- How managed care arrangements may differ across payment and plan structures
Who Should Read This
- Physicians
- Anesthesia groups
- Medical practice administrators
- Billing managers
- Managed care negotiators
- Healthcare attorneys
- Practice consultants
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