Via Email
We received a question about healthcare provider pricing tactics as they relate to managed care contracting
We received a question about healthcare provider pricing tactics as they relate to managed care contracting. The reader asked whether pricing tactics will become irrelevant under the Accountable Care Act.
Dear Reader:
Healthcare provider pricing tactics will become irrelevant.Payers (govenrment agencies, insurers, trade unions and employers) will use market clout and acknowledge brand value to set reimbursement levels. We are already seeing this when health plans attempt to negotiate rates lower than Medicare rates in a given market. The market could not care less what your costs are, even less for what your prices are. What you must do now is prepare for higher volumes and control for internal costs, inefficiencies, and waste. The start concentrating your attention on innovation and bundled packages where you can differentiate your product and service and leverage brand value to attract market interest.
