Victor Manes, MBA
I AM STUNNED…..I have been in the Hospital Administration/Healthcare Contracting world for 30 years and it amazes me how Health Systems are still trying to hold on to their 1980’s mentality of offering contracts at a % of billed charges.
The old days of profiting on these PPO CASH COW contracts is soon becoming a thing of the past now that Employers are more savvy about what to expect when paying for healthcare services. It is no longer a “One way street” where employer must accept contract rates that cause them to choose between giving raises to their Employees or pay for healthcare benefits.
This past year of COVID and new industry pricing transparency requirements has caused and allowed Employers to take notice of their ever increasingly high dollar healthcare spending that they have been paying for decades. Hospitals/Providers can no longer hide their pricing.
With all that said, I am dumbfounded by how Hospitals/Providers have a lack of understanding and willingness to adapt to the changing world around them and the new contracting opportunities that exist for them.
Those Hospitals and providers who understand the changing landscape and are willing to directly partner with Employers will ultimately see their profits increase and leave the others who are wishfully holding on to the past, FAIL.
