Question

Successfully negotiated managed care contracts involve preparation, compromise, and collaboration, according to HFMA. It is important that healthcare organizations and constituents set forth their expectations with regard for payer needs in order realize impending benefits of successful contract negotiation.

I have to summarize the importance of managed care contracts from the perspective as a healthcare professional OR a patient. Include information about the following aspects of contracts, all from the selected perspective of either the healthcare professional or the patient: The purpose of negotiating Possible benefits and risks as a result of the established contract Why preparation, compromise, and collaboration are necessary in the process.

Answer 1

*Answer:

The purpose of the negotiation in a managed care contract is to reach the agreement with the prayer and to understand as well as appreciate the need of the payer. A managed card contract helps in building the sound financial strategy for the organizations and therefore, it becomes necessary for the organizations to successfully negotiate the contract and reach a point of agreement with the payer. The benefit of an established contract is that both parties are assured about the terms and conditions applicable to the contractual relationship. An established contract also helps in building a long term relationship with the payer through cross-selling as well as affiliation through the employers. However, the only risk associated with such an established contract is that it becomes legally binding for both parties. While negotiating the contract and to reach a point where it becomes more likely that the payer will accept the contract, preparation, compromise, and collaboration are the most important part in successfully establishing the contract with the payer. Preparation, compromise, and collaboration help in the assessment of the expectation of the organization from the contract and understanding the need of the payer. These processes helps in discovery of the expectation of both the parties and helps in making an agreeable terms and conditions of the contract. These process also helps in building a long term relationship with the payer.

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