Which criteria should be analyzed prior to contract negotiations?

Analyzing member volumes by product type is essential prior to contract negotiations because it provides insights into the demand and utilization patterns of various products. Understanding how many members are enrolled in each product type allows for more accurate projections of potential revenue and helps identify areas that may need adjustments in terms of pricing or coverage options. This knowledge can strongly influence negotiation strategies with payers, providers, or other stakeholders involved in the contractual agreements.

In contract negotiations, knowing the volume of members tied to specific products can help in setting realistic and competitive pricing structures. It also allows for better preparedness in addressing concerns from potential partners regarding risk management, service delivery, and the overall financial viability of the negotiated terms.

While historical member premiums, current insurance regulations, and future medical technologies have their importance in the negotiation process, the immediate relevance of member volumes directly ties to understanding current business dynamics and member needs. This makes it a critical focal point before entering contractual discussions.