Antitrust guides explain messenger model

Article Abstract:

The new antitrust guidelines issued by the Federal Trade Commission and the Justice Dept. clarify the messenger model according to which physician networks and physician-hospital organizations are to negotiate their pricing contracts with managed care plans. The third-party intermediary between the physician networks and managed care plans is granted power of attorney on behalf of the networks. Messengers can contract directly with managed care organizations who meet the networks' terms, develop a fee schedule and negotiate the best prices for physicians.

Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Hospital and medical service plans, Medical Care Insurance, Price-Fixing Regulation, Health Regulation NEC, Health care industry, United States. Department of Justice, Social policy, Health insurance, United States. Federal Trade Commission, Price fixing, Medical law, Price regulations

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How low should you go? Discounting fees may seem self-defeating, but it can be part of a long-term growth strategy

Article Abstract:

Physicians are under pressure from insurers to discount their services, resulting in payments that are often less than Medicare. Discounts can be a liability, but they can also be a boon if properly managed. The key is a constant awareness of the cost of healthcare delivery. Discounted contracts may or may not bring increased volume sufficient to do more than just cover costs. Other factors include practice size, competition and retirement plans.

HEALTH SERVICES, Prepaid Provider Health Plans, Health maintenance organizations

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Caveat vendor: seller beware!

Article Abstract:

Owners of medical practices should carefully evaluate all offers seeking to acquire the practice. Key to obtaining a good acquisition offer is a sound valuation of the practice. Any valuation proffered by the acquiring party should be reviewed by an independent appraiser. Market conditions, practice income and practice costs all affect the practice's valuation.

Methods, Management, Acquisitions and mergers, Valuation, Medical offices

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