Why health systems must renegotiate contracts to survive

Providers must stop subsidizing payors’ profit margins. Consider United Health Care, which boasts a 6 percent margin on revenue (equivalent to $22 billion), while hospitals manage a slim 3 percent margin, and physician practices often struggle to stay financially viable. This imbalance underscores the urgent need for hospitals, health systems, and physicians to negotiate rates

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Why health systems must renegotiate contracts to survive originally appeared in KevinMD.com.

 

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