Review the attached scenario
Prepare for contract negotiations by focusing on relevant information that would directly impact the hospitals income statement.
For example, the leadership team might want to revisit its chargemaster and ensure that its prices are appropriately set. This would have an impact on patient service revenue, which would impact the revenue line item in the income statement.
As a provider organization, we need to assume that the carrier will likely propose a nominal increase in their reimbursement rates to help offset some of the inflation effect, which serves to drive up the cost of the firms working capital. They will also likely suggest that the organization may want to reexamine its pricing model, cost-shifting practices, and expense controls as methods of maximizing the rates they propose. Anticipating their arguments, the leadership team should come to the meeting prepared to address these issues.
Three references
