Payer contracts contain language that affects your practice’s financial well-being. You will end up stuck with outdated contract terms that don’t meet your practice’s current needs.
Payer reimbursements are the foundation of your practice revenue, but unfavorable contract terms can cost you thousands of dollars.
Think of all the payer contracts your practice has to manage. Because there are so many, even minimal gains on multiple contracts can provide a huge boost to profitability. A slight increase on a popular (revenue producing) procedure will go a long way. Every dollar counts!
Your payer contract includes an evergreen clause that allows the payer to automatically renew your contract at the end of each term. The payer relies on your lack of attention of its contract and evergreen clause to continuously renew the agreement year after year. Don’t allow this to be you!
It’s difficult, if not impossible to secure substantial reimbursement rate increases all at once. You cannot make up for years gone by. Proper contract management would secure small increases during each payer contract renegotiation.
Most offices have never renegotiated their contracts and very few renegotiate them on an annual basis, missing out on additional revenue that can be substantial and greatly impact the practice’s revenue.
With your CodeToolz Contract Analyzer, your Contract Renegotiation Notices are automatically created for you, based on anniversary date – no more outdated fee schedules.
Payer Contracting (Pre-Negotiations)
Before you begin the negotiation process, you must decide on the important issues that you want to negotiate. There are two main issues involved with any managed care contract negotiation:
- Negotiation of financial terms, and
- Negotiation of legal terms.
To most providers, the most important part of any contract is the fee schedule. If the fee schedule is unacceptable, the clauses and language contained in the rest of the contract is irrelevant.
Payer Contract Renegotiation Timeline
Our Contract Analyzer is designed to track and manage your payer contracts, analyze fee schedules, manage options for payer negotiations and increase the bottom line. Schedule a Free Consultation / Demo to get control of your payer contracts and reimbursements.