Steve Cowherd Quoted on Rising Health Care Contract Disputes

Chair of Pullman & Comley's Health Care practice Stephen M. Cowherd was quoted in a recent Hartford Business Journal article, "Amid rising costs, hospital and health insurer contract disputes become more frequent, contentious."

The article discusses the growing number of contract disputes between healthcare systems and insurers, pointing to inflation, regulatory shifts, and market consolidation as key drivers behind the increasing frequency and intensity of these negotiations.

Steve comments on the added pressure hospitals face due to the regulatory environment, including recent legislation that limits so-called “all-or-nothing” clauses in provider contracts—an approach he says can put hospitals at a disadvantage during negotiations. He also highlights the financial challenges nonprofit hospitals face compared to for-profit insurers, noting, “When I’m arguing with a large insurance company, I always point to their quarterly profits and say, ‘look at your mammoth millions and millions of dollars in profit compared to my client, which may have a 2% to 4% operating margin.” These issues are expected to remain top of mind as contract negotiations continue across the state.

To read the full article, please visit the Hartford Business Journal website.