Health care providers in New York end contract dispute

Contract disputes can arise in a variety of different situations. Because of the sometimes delicate nature of negotiating and executing a contract, it is important to be fully informed of the process and ensure that all important aspects of the contract negotiation process, from offer and acceptance to finalizing the contract terms, are properly pursued. A couple of hours north in the capital of New York, Capital District Physicians Health Plan (CDPHP) and cancer care provider New York Oncology Hematology (NYOH) recently announced that they have resolved their contract dispute.

Reaching an agreement came as a relief to many cancer patients. Contract negotiations had been at an impasse related to CDPHP's requests for cuts NYOH claimed would impact care. Though the details of the agreement that was reached were not disclosed, according to a CDPHP representative, the contract dispute related to commissions CDPHP provides to oncologists as an incentive for the cost of injectable drugs. CDPHP proposed a reduction in the commission amount above the cost of the cancer drugs.

Contract formation is an important process. It is important to ensure all necessary requirements of a contract are met because significant interests may be riding on the agreement. At their most basic level, contracts are essentially agreements based on an offer and accepted offer between the parties which is why it is also important that a contract also accurately describes the agreement between the parties.

In addition to ensuring that all the elements or a valid contract are satisfied, it is important for any contract to communicate what the parties have agreed to because the contract represents the rights and obligations the parties are binding themselves to. Contract negotiations can sometimes be complex and contract disputes can sometimes be tense which is why it is important to be familiar with the contract negotiation process and how to handle contract disputes when they arise.

Source: WAMC Northeast Public Radio, "CDPHP, NYOH Resolve Contract Dispute," Dave Lucas, Jan. 27, 2015

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