Assignability of physician contracts
ISSUE SUMMARY
The provider contracts of some health insurance companies and managed care plans sometimes contain clauses which allow the assignment of such contracts to another insurer or network without the knowledge or consent of the contracting physician. When such an assignment is made, the contracting physician may have an obligation to provide professional services in accordance with the provisions of the original contract (e.g. fee schedule, write-offs, and utilization review decisions), or with the specific terms and conditions of the new insurer or network. Often, if the physician disagrees with the assignment, or with the new terms and conditions imposed, his or her only recourse is to terminate the contract with the original insurer or managed care plan.
ADOPTED ACTION OR POLICY
The Kansas Medical Society opposes the assignment of physician contracts to other health plans, insurers or networks without the prior notification and written consent of the involved physician. KMS also endorses and recommends inclusion of a non-assignability clause in all provider contracts between physicians and health plans, insurers, and networks.
Adopted by the KMS House of Delegates on May 1, 2010.
