admin / May 17, 2019
Hospitals Have So Much To Think About When It Comes To Money
The list of financial things to consider when running a hospital is as long as your arm. Outgoings are so vast that it is important to manage and maximize every penny coming in the door. It might seem counter-intuitive at first glance, but using a negotiation service might help you get a better bang for the buck on managed care contracts.
When it comes to negotiating managed care contracts the key element is to bear in mind the desired end goal. There is too much data and too many moving parts to make this a straightforward task. The big insurers like Medicaid and Medicare have constructed their paperwork in a complicated way on purpose. They are a business and their goal is to keep their costs down as much as they can.
As a result, the contracts are often long and complex, and there are usually a slew of addenda all of which are relevant to the requirement. Simply keeping them all in order needs a degree in organization.
The managed care contract is designed to move as much of the risk as possible to the hospital which has the effect of reducing the volume of dollars coming into the Hospital. It is an understandable business tactic, which means the hospital team needs to be really on their game when it comes to getting the contract negotiated.
Too often hospital teams have too much on their plate to give these contracts the attention they need, and so when it comes down to the inflow of monies, they find there’s less than they were expecting – which inevitably causes hardships elsewhere.
Using a team of professionals is a sensible approach. These people only negotiate contracts. Getting you the best contract might actually cost nothing in the long run.