decisionhealth Newsletters, Part B News - 2010 Issue 12 (December)
Three strategies to deal with ‘most favored nations' clauses
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Article Overview
This article explains practical contract-negotiation approaches for providers and consultants dealing with most favored nations clauses in payer or network agreements. It outlines broad strategies for reducing contract risk, including removing the clause, proposing an offsetting clause, or narrowing its scope, and references the role of payers, attorneys, consultants, and government scrutiny.
Why This Topic Matters
Most favored nations clauses can affect provider contracting and reimbursement arrangements, so understanding common negotiation options helps practices assess contract risk before signing.
What You Will Learn
- Common approaches used to address most favored nations clauses in payer contracts
- Why some organizations try to remove these clauses during negotiation
- How a reverse clause may be used as an alternative negotiation point
- Why limiting the scope of a clause can matter in contract discussions
- Which stakeholders and outside influences may affect whether a clause remains in a contract
Who Should Read This
- Healthcare providers
- Medical practice administrators
- Contract managers
- Billing and revenue cycle professionals
- Healthcare consultants
- Healthcare attorneys
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