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AA recent article in USA TODAY reported several interesting trends that are disturbing for healthcare providers and consumers of healthcare services. Two key facts cited were:

• Healthcare insurers are increasing premiums in the double-digit range for the third year in a row, well above the rate of medical inflation.
• Average healthcare insurer operating margins for the third quarter of 2002 were 5.3%.

While these facts bode well for investors, they don't help physicians and hospitals. If health insurers are doing so well in the marketplace, it would seem to make sense that providers should seek to balance the reimbursement scales! Many providers have gone years without a reimbursement increase or have received only inflationary adjustments (i.e. 3 to 5% increase). It makes sense to negotiate a better financial package for your practice or facility while the industry is doing well as it increases your leverage.

Why aren't providers pursuing this opportunity? Frequent reasons for not renegotiating contracts include fear of being dropped from participation lists, lack of knowledge of managed care negotiating tactics or just being too busy practicing medicine to have time to negotiate.

Amper's Healthcare Services Group has personnel with experience in negotiating initial contracts or renegotiating existing agreements for all types of providers. We can assist you in differentiating your practice from your competitors, thus providing you with a discreet market advantage. In addition, we have developed tools and procedures that many of our physician and hospital clients have found useful in guiding them through evaluating and negotiating agreements. Amper's staff has helped many providers to prepare for contracting opportunities and to succeed.

Lew Bivona CPA is a Manager with Amper's Healthcare Services Group. He has more than 22 years of experience in healthcare financing and operations and has particular expertise in reimbursement and contractual negotiations. Contact Lew at 732-287-1000, ext. 285 for a free consultation.