New AAFP Guide Can Help Physicians Navigate 'Contracting Jungle'

Many family physicians also serve as small business owners and, as such, are responsible for negotiating yearly contracts with health plans. To help its members through the contracting jungle, the Academy has developed a free 12-page contracting guide called Managed Care Contract Negotiation. (Click on the contracting guide link under "Spotlight" and have your member ID number handy.)

"The guide was developed to assist physicians in the negotiation process. They're up against people who do this for a living, so they're at a disadvantage from day one," said Laura Schmidt, an AAFP private sector advocacy specialist.

"Although there's no magic bullet when it comes to contracting issues, we want to arm our members with as many tools as possible," said Schmidt. The guide is a compilation of a wide array of information."

The guide suggests that physicians begin by assessing their practices, including completing a unit cost analysis to reveal how much it costs to provide each service offered and, ultimately, to help them tally the cost of running the practice.

Physicians also will learn strategies they can use at the negotiation table, such as

The guide includes a section on contract provisions or clauses that merit physicians' special attention because of tricky terminology. And, in some cases, the document advises physicians to actually strike a clause from a contract -- or amend the offending verbiage -- if it only benefits the payer.

Written as an information resource for family physicians, Schmidt said the AAFP's contracting guide should not be regarded as legal advice.