decisionhealth Newsletters, Part B News - 2011 Issue 10 (October)
3 tips to prove your need for a raise in payer contract negotiations
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Article Overview
This article covers how physician practices can prepare for private payer contract negotiations by assembling supporting data before talks begin. It focuses on broad categories of leverage, practice differentiation, and quality or utilization data, and references organizations and resources commonly used in contracting discussions. The piece is aimed at practices and administrators looking to understand what kinds of evidence may be relevant when asking for a rate increase.
Why This Topic Matters
Contract negotiations often depend on how well a practice can demonstrate value, market position, and performance. This article helps readers understand the kinds of information that may be gathered in advance so they can assess whether the guidance is relevant to their own payer discussions.
Article Sections
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1. Know where your practice fits in the local market
Discusses broad market positioning, local presence, and general types of data a practice may prepare for payer discussions. Also references payer-related leverage, community standing, and participation in performance-based initiatives.
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2. Determine what makes your practice special
Covers practice differentiation, service strengths, and general categories of supporting materials that may be used in negotiations. Includes discussion of reputational information, cost trends, and quality-related reporting sources.
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3. Gather clinical quality data to justify a rate increase
Addresses clinical quality, utilization, and trend data from professional and government sources as part of contract negotiation preparation. The section also touches on documenting service changes and cost pressures.
What You Will Learn
- How the article frames preparation for payer contract negotiations
- What broad kinds of practice data may be relevant in negotiations
- How the article organizes leverage, differentiation, and quality documentation topics
- Which organizations and reporting sources are mentioned in the discussion
Who Should Read This
- Physician practices
- Practice managers
- Medical group administrators
- Contracting specialists
- Healthcare revenue cycle professionals
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