Monday, June 27, 2016

"Most [Medicare Advantage] contracts with downstream providers ...

... are still on the basis of a fee schedule or a derivative of it. So when Medicare fee-for-service makes this seismic shift over to these more risk-based models, it basically tears up every contract that these plans have and forces them to rethink the way they do business with these physicians. In large part, Medicare fee-for-service is going out the window and this is becoming the new normal, and these kind of arrangements are going to be what you see in downstream contracts between MA plans and providers that are ready to do it."

— John Gorman, founder and executive chairman of Gorman Health Group, told AIS's Medicare Advantage News.

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