Locally there has been a recent eruption of contract disputes between managed care plans and hospitals, physicians and pharmacy providers (BCBS - Tufts Medical Center/NEQCA and Express Scripts - Walgreens), a trend that is likely to continue into 2012 and beyond. Managed care companies, faced with pressures locally from politicians, regulators and employers, and also at the federal level under healthcare reform, are looking to cut, freeze or negotiate smaller provider contract increases. Local providers, many of which claim they are grossly underpaid by government for Medicare and Medicaid services, have consolidated operations and expanded hospital-physician integration to strengthen their bargaining clout. These providers are challenging managed care companies, drawing hard lines during the negotiation process by demonstrating a willingness to not renew contracts and dragging employees and health plan members into the process. Read More