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SKDK Launches Payer Negotiation Practice

In a landscape fraught with challenges for health systems, SKDK, a renowned public affairs and strategic communications firm, has officially launched its new Payer Negotiation Practice. This innovative initiative is designed to assist healthcare organizations as they face increasingly complex and contentious negotiations with insurance providers.

According to Mike Morey, President of SKDK, the nature of negotiations in the healthcare sector has shifted significantly in recent years. Health systems are now grappling with aggressive strategies from payers who often press for reimbursement rates that do not align with the rising costs of patient care. Morey emphasizes that payers are not only focused on negotiation leverage but are also utilizing media strategies to undermine the reputations of the health systems in these discussions.

“This is a fundamentally different environment than just a few years ago,” says Morey. He highlights the urgent need for healthcare organizations to both understand the negotiation environment and effectively communicate their positions to preserve their reputations and secure fair reimbursement agreements. This new practice aims to combine SKDK’s award-winning public affairs expertise with a tactical approach to help clients navigate these high-stakes negotiations.

The launch of the Payer Negotiation Practice comes in tandem with a new national poll conducted by HarrisX in collaboration with SKDK. Results indicate that nearly 80% of Americans value keeping their preferred doctors and hospitals within their insurance network. Shockingly, 45% reported having faced negative coverage or network issues involving their insurance company and healthcare provider within the last three years.

SKDK's newly formed team for this practice consists of highly experienced experts in healthcare communications, public affairs, opinion research, and issues management. Notable members include Morey himself, along with Loren Riegelhaupt and Erin Weinstein, who co-chair the firm’s healthcare activities. Their expertise will be crucial as they assist health systems in preparing for negotiations, providing insights on communication strategies, and managing reputational risks during public scrutiny.

As health systems continue to navigate a turbulent financial climate—characterized by declining federal Medicaid and Medicare payments and an increase in uninsured patients—the necessity of robust public affairs strategies has never been more critical. Disputes over reimbursement, network access, and timely patient care are increasingly taking center stage in media, legislation, and public discourse.

SKDK has a solid track record of advising healthcare institutions across the nation, having guided numerous organizations through some of the sector's most challenging predicaments. These include issues related to insurance dealings, financial crises, and even legislative inquiries. During the COVID-19 pandemic, SKDK played a pivotal role in orchestrating public affairs and communications efforts that were vital to the healthcare industry's response.

In light of these ongoing challenges, the HarrisX survey results underscore the real implications that negotiations with insurance companies can have on access to care. A significant 62% of Americans would view their insurance provider less favorably if their preferred health system was excluded from their network. Among the those who reported having faced coverage problems, 38% stated these issues led to increased stress, while others cited delays in appointments or treatments.

In response to the complications arising from payer negotiations, SKDK aims to collaborate extensively with health organizations’ leadership, managed care teams, legal advisors, and communications departments to prepare them for the evolving negotiation landscape. By doing so, they intend to ensure health systems can communicate effectively with their audience and address any potential public concern that arises.

Loren Riegelhaupt, a Partner and Co-Chair at SKDK, accentuated the urgency of this undertaking, noting that the relentless pressure placed on health systems during negotiations demands a seasoned communications team capable of securing favorable outcomes.

In conclusion, with around a third of Americans placing their trust in healthcare providers for accurate information about coverage and access to care, SKDK's strategic launch of the Payer Negotiation Practice stands to have far-reaching effects, potentially redefining how health systems approach their negotiations with insurers moving forward.