Be Cautious of Small Payor Contracts
Time is Money
Some small payor plans may not be adequately capitalized, and their administrative burdens are often too heavy. If they do not offer a large patient population for you, make them convince you that the contract is worth the trouble.
We often find practices with dozens of contracts producing little volume and bringing with them the same credentialing hassles and other administrative chores as big contracts. This kind of effort for little return can have a negative impact on your bottom line.
For excellent tips and insight on managed care/payor contract negotiations, read 10 Pitfalls to Avoid in Managed Care Contract Negotiations.
If you have questions about this topic or any other issues around the business of medicine, contact us via email or call us at 800-635-4040.