Contracting: Tailor your message

 - 
Wednesday, August 12, 2020

Q. How do I convey a compelling value proposition to payers?

 A. There are five critical questions to answer when creating a compelling value proposition to payers.

How can I tailor my message to fit a payer's perspective?

Like you, insurance is a business and has goals. You want to tailor your message to show how your organization supports their goals. Maybe emphasize if you have been declining their members, have a unique offering, or a geographic/customer service advantage. Do you lower the total cost of care? If yes, be prepared to say how - direct cost compared to competition, unique approach, data availability, etc.

Who is my competition and are there alternatives for my services?

Every payer weighs its decision uniquely, but it will consistently compare you relative to your competitors by service area and specific services offerings.

What is unique about my offering?

You may have a fantastic program or process that sets you apart, but if it's not articulated related to the payer’s goals, you aren’t creating the value. How does your offering drive quality outcomes, lower costs, plan membership, etc.?

What do my peers do better than me?

Understand the offerings of your competitors and identify where they have the advantage. If you are touting a strength that is a commodity, that undermines your credibility.

How will you approach the payer?

Go through the appropriate channels when reaching out to payers. Going "straight to the top" is tempting - but if they say "no" to your request it’s near impossible to bring it back to life. Every link in the chain is another opportunity to go from no to yes. Engage consultants to take advantage of their payer relationships.

Armando Cardoso is CEO ofHealthcents. Armando can be reached at info@healthcents.com