PPS offers both hospitals and physicians expert contract negotiation services that are guaranteed to increase revenue for your organization. This renegotiation process requires significant time on the part of our contracting specialists and usually takes around 120-150 days to complete the process. The process may be long but the reward for your practice can be very great. In most cases, we achieve a net increase from most insurers of around 10-12% but it depends on many factors and can be less or more depending on your situation. Oftentimes, the agreed upon increase will be split up over two years which is the case when you have not renegotiated your contracts in over two years. There will also be cases where the insurance company allows you to participate in a certain HMO and give you less of an increase on your contracts. There are a lot of strategies utilized by the insurance companies to save money and make your life hell, but it is our job to decipher through those and give you the bottom line.
Archive for Contract Negotiation Services
Insurance Contracting Questions
Questions to ask before signing a insurance agreements:
- What does this contract mean to me in terms of revenue?
- What does this contract mean to me in terms of expenses?
- Would I have the potential to lose patients if I do not contract with this company?
- If yes, who are those patients?
- Is the plan easy to administer?
- Does the company pay in a timely manner?
- What provisions are made for timely filing?
- What is the interest rate paid if it after the designated time period?
- What is the rate of denials?
Why you need to renegotiate your contracts
Now is the time for you to renegotiate your managed care contracts and receive the increase you deserve. It is a for sure way to increase revenue per patient. Take your yearly or monthly costs and divide this number by the number of office visits for that same period. This will give you a very rough number of your costs per patient. Now, take this number and divide it by the revenue received from these same procedures to find out what your cost is as a percentage of your revenue.
What is your average margin or operating cost percentage over revenue? 50% or 60%
New Practice Start Up Questions
Feel free to post any questions related to opening a new practice and we will be happy to help. Credentialing and starting a new practice is a major headache so don’t try to go it alone. Please utilize the Practice Forum for free assistance.
We welcome your credentialing, insurance or practice start-up questions and would be happy to assist you. Starting a medical practice is one of the most difficult things a physician could ever do. It is unfortunate, but most medical programs do not provide physicians with the necessary training to start a practice effectively.
