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Hospitals must join payer-purchaser negotiations.

Two of the three "P"s--payers and purchasers--have recently begun forming exclusive contract relationships specifically to control healthcare costs. The irony is that the excluded "P," providers, has the most direct influence over the costs of patient care. This article, the fifth in a six-part series on "managing managed care," focuses on ways for hospitals to deal with these employer initiatives.

Arizona↗

Creativity, caution needed when negotiating HMO contracts.

Healthcare organizations that opt to enter into contracts with health maintenance organizations (HMOs) should pursue agreements that offer protection against potential HMO insolvencies. Two recent, highly publicized bankruptcies underscore the importance of understanding laws and regulations governing HMOs, advantages and disadvantages of various payment options, and ways to investigate an HMO's quality and stability before a contract is signed.

Contract Services↗