DecisionHealth, DecisionHealth - 2010 Issue 11 (November)

Protect yourself from private payer ‘most favored nation' clauses

Be on the lookout for clauses in your managed care contracts that require you to accept from the payer the lowest rate you give any other payer. These provisions, known as most favored nation (MFN), cost-containment or prudent buyer clauses, restrict your ability to contract with other payers and force you to get paid less - sometimes a lot less - than you had originally agreed to when you signed the contract.

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