Since healthcare reform legislation was enacted in March, many payers and providers may have noticed a heightened level of tension at the negotiation table. After all, many providers are approaching their upcoming commercial contracting cycle as their last chance to get a sizeable rate increase before cuts occur. However, payers face several immediate coverage mandates that require them to immediately minimize their unit reimbursement increases to providers. The result? A sizeable increase in the number of recent contract battles between large payers and providers.

So what are providers to do? How can such battles be prevented as reform plays out across our industry? The key to avoiding these public battles and distractions boils down to three proactive steps:

• Recognize the dead ends with your traditional payer relationship model
• Formulate your own transition plan to a value-based contracting model
• Avoid operational potholes along the way

Continued on HFMA