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Payor Contract Proposals

  • 1.  Payor Contract Proposals

    Posted 12-01-2021 09:42

    Good Morning,

    We are in touch with a few consultants regarding renegotiating Aetna and United.

    Neither have been done in awhile.

    What should the expected uplift be and is it usually done over a period of time(3 yrs)?

    Thank you
    Marlo Bakst



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    Marlo Bakst
    Manager, RCM
    New Rochelle Radiology Assoc., PC
    New Rochelle NY
    914-633-7700
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  • 2.  RE: Payor Contract Proposals

    Posted 12-01-2021 09:48

    Marlo,

    United HC came in and lowered our rates. They claim they were re-adjusting the market. After months of negotiations we agreed to the lesser of the evils.

    Good luck!

     

    Joanne Chichizola

    Billing Manager

    Description: image001Description: <a href=image002.png@01D4F5C8.AEAC51A0">

    777 Passaic Ave, Clifton, NJ 07012

    Phone: (973) 284-0020 X 1304

     Fax: (973) 284-6310

     

     






  • 3.  RE: Payor Contract Proposals

    Posted 12-01-2021 10:01
    Seems like "adjusting to the market" is new payor speak for we are gonna pay you less, while we charge our customers more.

    David Rushing, RT(R), MR
    Director, OGH Imaging in Sunset

    1509549085594_signature2.png
    P.O. Box 437
    Grand Coteau, LA 70541
    Phone: (337) 407-4523
    Cell: (337) 207-3031
    Fax: (337) 662-2234






  • 4.  RE: Payor Contract Proposals

    Posted 12-01-2021 10:30

    Yup! They were tough too.

     

     

    Joanne Chichizola

    Billing Manager

    Description: image001Description: <a href=image002.png@01D4F5C8.AEAC51A0">

    777 Passaic Ave, Clifton, NJ 07012

    Phone: (973) 284-0020 X 1304

     Fax: (973) 284-6310

     

     






  • 5.  RE: Payor Contract Proposals

    Posted 12-01-2021 10:21

    We notice that requested renegotiations almost always end up in reductions. 
    Unless you have proof that other markets in your same modality and setting are getting more, you don't have much of a leg to stand on.

     






  • 6.  RE: Payor Contract Proposals

    Posted 12-01-2021 10:30
    If you're a hospital based group, the No Surprises Act will be a significant factor.  You need to understand the interplay between federal law and any applicable state law.  If federal law will generally prevail (or no state law in place), then a key question is what is the QPA, which is what you would normally be paid out of network.  Remember that the QPA is the January 2019 median contracted rates for the same code in the same geographic area, adjusted for inflation by the CPI-U (+9% last time I checked).  Also remember that the inflation adjustment occurs annually each year into the future.

    If the payor asserts a QPA well below what you see as common in the market in January 2019 + inflation, then I would ask for supporting data....the payor should be able to show that half of the contracts in the market were below the QPA in the base period.

    I also think the No Surprises Act provides a strong argument for all future contract to contain annual escalators tied to CPI-U, since that will drive changes in the QPA going forward.

    Obviously, the impact of the No Surprises Act may be negative for the minority of groups with rates well above the median, but it should be positive for the majority, especially as inflation continues.

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    David Smith FACMPE
    Executive Director
    United Imaging Consultants
    Mission KS
    (785) 393-8387
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  • 7.  RE: Payor Contract Proposals

    Posted 12-01-2021 10:32
    We have been using the Fair Health data which shows ranges from 170% at the 50th percentile all the way up to 400%+ at the 80th percentile.
    don't fold!!!!!

    Also as a side note, I had received a single case agreement from one payor, this agreement was for another company (not ours) and in another sub-specialty, it was accidentally sent to me, and that SCA had a rate of well over 400%.

    Now I'm not saying 400%+ is your goal, but you need to set your sights higher.

    What's wrong with this picture:
    They charge more, continue to increase profits, we on the other hand continue to get squeezed with rates going down and the cost to operate going up.

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    Douglas G. Kraus, CPA
    Chief Financial Officer
    South Texas Radiology Group, P.A.
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  • 8.  RE: Payor Contract Proposals

    Posted 12-01-2021 11:08

    Douglas,

     

    I am very interested in learning more about the Fair Health data that you referenced. How do you access that and is it a paid subscription or is the data free? A quick Google search yielded the FairHealth "Benchmarks" webpage for Charge Benchmarks and Allowed Benchmarks. Is that what you're referencing?

     

    Thanks,

    Janene Markuske (She/Her)

    Client Manager – Radiology

     

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    Remote employee based out of St. Petersburg, FL

     

     

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  • 9.  RE: Payor Contract Proposals

    Posted 12-01-2021 11:30

    https://suprisebilling.fairhealth.org/

    yes paid, but we paid once and may update the data later.  
    obviously relative to states but sill provides some benchmark data.
    we then volume weighted for those codes available.

    they do also have some online data but I believe you have to do it code by code vs. a download.




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    Douglas G. Kraus, CPA
    Chief Financial Officer
    South Texas Radiology Group, P.A.
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  • 10.  RE: Payor Contract Proposals

    Posted 12-01-2021 11:32
    had a typo:
    https://surprisebilling.fairhealth.org/

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    Douglas G. Kraus, CPA
    Chief Financial Officer
    South Texas Radiology Group, P.A.
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  • 11.  RE: Payor Contract Proposals

    Posted 12-01-2021 11:51
    All,

    This week's Hot Topics poll addresses payer contracting activity connected to the No Surprises Act.  A link to the survey is provided below...I hope you will take the opportunity to weigh in on this important topic.

    12/1/21 Hot Topics: Contracts and the No Surprises Act (surveymethods.com)

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    Mark Canada MHA
    Operations Manager
    R.A. Services
    North Chesterfield VA
    (804) 272-8806 ext. 386
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