Why health systems must renegotiate contracts to survive
Providers must stop subsidizing payors’ profit margins. Consider UnitedHealthcare, 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 that not only cover their costs but also generate margins sufficient to offer competitive salaries and reinvest …
