How Do Practice Mergers or Acquisitions Affect Existing Payer Contracts?

Practice changes trigger contract reviews and potential renegotiations. Payers typically have change-of-control clauses allowing them to review or terminate contracts when practices merge or are acquired. Tax ID number changes require new contract execution in most cases. The acquiring entity may need to credential all providers under new arrangements. These transitions should be planned carefully with adequate lead time, as there may be gaps in network participation during the transition. Negotiating how mergers affect contracts before completing the business transaction prevents unwelcome surprises.