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Managed Care Services

Improvement of commercial payor contracts can result in significant revenue gains for hospitals, health systems, and medical groups. ECG has extensive experience assisting hospitals and medical groups in managed care contract analysis, negotiation, and revenue capture. We have expertise in every step of the managed care process, from defining the contracting strategy, to modeling the revenue impact of contract terms, to negotiating contracts and resolving payment disputes. The result of these projects is often millions of dollars in extra revenue.

We can provide assistance with specific components of the managed care cycle or serve as the managed care department for the hospital. Specific areas in which ECG consultants can be of assistance include:

  • Contract modeling, analysis, and language review.
  • Negotiation and negotiation support.
  • Managed care strategy development.
  • Rate benchmarking.
  • Payment compliance audits.
  • Dispute resolution and litigation support.
  • Operational reviews.
  • Managed care structure, function, and departmental design.

As a result of our Managed Care Services, hospital clients see measurable gains in their income. We currently provide Managed Care Services to a number of hospitals and have completed multiple negotiations resulting in significant revenue increases for our clients:

  • We secured a 35 percent reimbursement increase over 15 months from a major commercial payor for a 280-bed community hospital.
  • We helped a 1,560-bed delivery system understand its reimbursement position in the marketplace and advised on reimbursement strategies for upcoming negotiations (approximately $65 million in contracts).
  • We secured a $1.3 million payment for a 170-bed hospital from a major commercial insurer due to system payment errors.
  • We analyzed and negotiated contracts for employed physicians of a multihospital system, leading to a $2 million annual revenue increase.
  • We analyzed revenue cycle operations for employed physicians of a multihospital system and initiated process improvements, leading to a $3 million bottom-line impact.

Following are examples of our work and our clients’ results in this area:

 
 

Selected Projects

  • Providing financial modeling support for managed care negotiations.
  • Serving as the managed care department for a health system.
  • Serving as a strategic adviser to a multispecialty clinic and health plan.
  • Providing managed care litigation support for dispute resolution.

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