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Related Experiment Videos

Negotiating or renegotiating managed care contracts.

R Tinsley1

  • 1Horne CPA Group, Houston, TX 77057, USA.

Medical Group Management Journal
|August 5, 1998
PubMed
Summary

Medical groups gain negotiating leverage for managed care contracts by offering unique benefits like broad provider networks or high quality. Proactive physicians secure advantageous contracts by understanding and utilizing these key negotiation strategies.

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Area of Science:

  • Healthcare Administration
  • Contract Negotiation
  • Provider Networks

Background:

  • Managed care contracts are crucial for medical group financial stability.
  • Negotiating favorable terms requires strategic leverage.
  • Understanding unique selling propositions is key to successful contract renegotiations.

Purpose of the Study:

  • To identify key factors that provide medical groups leverage in managed care contract negotiations.
  • To emphasize the importance of a proactive approach for physicians during contract discussions.

Main Methods:

  • Analysis of factors contributing to negotiation power in managed care.
  • Review of successful strategies employed by medical groups.

Main Results:

  • Leverage can be achieved through offering extensive provider panels.
  • Geographic coverage and superior quality are significant negotiation assets.
  • Proactive engagement by physicians leads to more advantageous contracts.

Conclusions:

  • Medical groups must offer unique value propositions to secure optimal managed care contracts.
  • Physicians benefit significantly from actively participating in contract negotiations.
  • Strategic differentiation is essential for maximizing contract terms.

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