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Related Experiment Videos

Contract leveraging: a strategy for provider groups in managed care.

G G Mayer1, A Kuklierus

  • 1Institute for Healthcare Advancement, Whittier, CA, USA.

Managed Care Interface
|August 5, 1998
PubMed
Summary

Leveraging in healthcare negotiations is a strategic technique, not intimidation. Provider groups can effectively use their strengths to secure favorable contracts with managed care organizations (MCOs).

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Area of Science:

  • Health care management
  • Negotiation strategies
  • Provider-payer relations

Background:

  • Healthcare negotiations between provider groups and managed care organizations (MCOs) are complex.
  • Leverage in these negotiations is often misunderstood as aggressive tactics.

Purpose of the Study:

  • To redefine leverage as a strategic negotiation technique.
  • To guide provider groups on utilizing their core competencies in contract negotiations with MCOs.

Main Methods:

  • Conceptual analysis of negotiation principles.
  • Application of provider group strengths in contract discussions.

Main Results:

  • Leverage is a collaborative approach, not a zero-sum game.
  • Effective use of provider abilities enhances negotiation outcomes.

Conclusions:

  • Provider groups can achieve better contract terms by strategically applying their strengths.
  • Understanding leverage as a technique fosters more productive MCO negotiations.

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