Tips for VBC Contract Negotiation From the HCN Conference

I had the pleasure of presenting at Health Choice Network’s 28th annual conference last week in beautiful Boca Raton, Florida. My presentation focused on FQHCs and their role in providing value-based care. We are excited to be partnered with HCN and look forward to sharing case studies and other intelligence related to FQHCs and health value.

While I was tempted to look for Bon Jovi and Adam Sandler (both are property owners there), I was too engaged with the wonderful attendees, presenters, and great content at the event! I thought I’d highlight a piece of one of the presentations I saw, from Michael Lawton, CEO of United Healthcare’s Florida Health Plan.

Based on his years of experience in value, Mr. Lawton spoke about negotiating value-based contracts between payers and providers. He stated something like this: for providers, spend 10% of your time on the quality and financial measures – those are the easy things. The rest of your negotiation (90%) should be focused on the more important and difficult items. These include (but are not limited to):

  • Access to actionable patient data
  • Provider education
  • Cloud-based technology
  • Access to data
  • Care management tools
  • Credentialing providers
  • Improving health literacy of patients
  • Self-guided learning, proprietary job aid, and an archive of best practices
  • And the list could go on…

Essentially, your relationship with your payer should be a partnership. There are likely some additional items that are unique to you that you will want to prioritize. Just make sure you go into the conversation with a plan to do more than define quality and financial metrics.

I hope this helps you take your NEXT STEP on the Race to Value!

Daniel Chipping
Director, Operations
Institute for Advancing Health Value