How group practices can avoid managed care contracting pitfalls
Gosfield, A.G.
Healthcare Financial Management Journal of the Healthcare Financial Management Association 53(7): 37-39
1999
ISSN/ISBN: 0735-0732 PMID: 10558004 Document Number: 511675
When negotiating contracts with managed care organizations, group practices should understand the potential pitfalls involved. The basic issues to be aware of are understanding the relative parties' negotiating positions, the business significance of fundamental terms, and the actual contract provisions. The most important clauses in contracts concern compensation and termination. Group practices should require that their contracts include clauses that provide the physicians with protection should utilization assumptions not be met. They also should be realistic about their ability to fulfill contract terms. In addition, contract terms should be clearly written, well-defined, and time-limited.