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Article: LESS IS MORE: HEALTH PLANS, PROVIDERS SHOULD LIMIT THEIR CONTRACTS TO GAIN ADVANTAGE OVER COMPETITORS.
- Article from:
- Modern Healthcare
- Article date:
- October 4, 1999
- Author:
CopyrightCOPYRIGHT 1999 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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More is not always better. In fact, health plans and providers might benefit by limiting the number of organizations with which they contract. Especially as the industry consolidates, health plans can stand out from competitors by having distinctive networks. They might even achieve some level of exclusivity with key or highly visible providers. The plans can drive higher volume to fewer contracted providers and negotiate lower rates with those providers. In addition, smaller provider networks should reduce administrative expenses, because there would be fewer yearly negotiations, renewals, and budgeting and adjudicating claims.
Before canceling existing ...