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News, Updates, and Information for the MRN Member

MedResults Newsletter Issue 4 • December 2012 •

Can a solo physician or small group practice really negotiate their payer contract language and increase reimbursement rates? The answer is YES! In today’s healthcare and economic environments, where healthcare costs continue to rise and reimbursements continue to decline, physician practices must look at all of their options when it comes to increasing profitability. The competitive nature of healthcare is now requiring physicians to review their business models to maintain their viability. The most overlooked strategy has always been re-negotiated health insurance contracts.

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Industry Acquisitions Valent acquires Medicis, McKesson adds PSS to its portfolio and Allergan moves into skin care through SkinMedica. Page 4 has the news!

Tradeshows & Conferences See page 3 for a list of tradeshows and conferences where you can meet MedResults Network!

I am told everyday that the large healthcare insurance companies (Such as Blue Cross, Blue Shield, Aetna, United Healthcare, Health Net, Cigna and Independent Physicians Organizations (IPA’s), do not negotiate with solo physicians and small group practices. Although the health plans would love for you to believe that, it simply is not true. Gone are the days when you can call your pal, the Medical Director at the health plan, the one you went to medical school with, or the one that your child goes to school with and say, “Please do me a favor and increase my reimbursements rates by ten percent (10%).” It is no longer easy to ask that they take out all the language you do not like in your contract, then expect a new contract to miraculously appear on your desk for execution.

Obagi Introduces Hydrate! Learn more about Obagi’s newest moisturizer on Page 4.

This leads to several important questions to consider: How do I negotiate my contracts? What bargaining methods can I use to get the best rate? What type of outcomes can I expect when I negotiate my contract. Is an extra 5% really worth the hassle? This article will review a handful of answers to these questions. Today’s healthcare market is witnessing massive shortages of certain providers. Interestingly, state departments of insurance usually dictate the number of physicians that a health network must maintain. Meanwhile, health insurance companies contracted to administrate government-funded health plans are required to follow guidelines of clinical outcomes and patient wait times. These are key aspects to review when negotiating your contract. If your particular field or specialty is in high-demand, unavailable in a certain geographic area, or you provide services and procedures that your competitors do not, then you have better bargaining leverage. The benefits of a successful contract negotiation have long-term benefits. Many providers don’t realize that their contracts are “evergreen”, meaning that they renew automatically, Payer Contracts Continued on Page 2

EARN $150! Page 2– REFER A COLLEAGUE

Maximizing the Network! New to MedResults and confused about how to maximize your savings? Look no further than page 5!

MedResults Network • 16400 Pacific Coast Hwy, #214 • Huntington Beach, CA 92649 • Phone: (562) 296-5655 www.MedResultsNetwork.com • info@MedResultsNetwork.com


News, Updates, and Information for the MRN Member

MedResults Newsletter Issue 4 • December 2012 •

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Payer Contracts Continued from Page 1

but who you know. Get to know your provider representative. They are generally very helpful, and while they are incentivized annually, and in perpetuity. Therefore, however small or large to keep your reimbursement increases to a minimum, they are a your reimbursement rate increase is, it renews every year much better contact than sending a white letter to your insur“forever.” For example, for a practice that generates one million ance company hoping that it gets into the right hands. dollars ($1,000,000) per year in revenue, a small five (5%) increase, with no additional production or overhead increases, Prepare a formal proposal that differentiates yourself from your will generate profits of fifty-thousand ($50,000.00) dollars per competitors. What is it about your practice that makes it the year, every year. That amounts to $500.000 in the next ten better choice for the health plan members? Remember, the years! What would a twenty (25%) percent increase do to your health plan is accountable to patients, not necessarily you, so you have to convey to the health plan that your services are an bottom line? asset to their network. Your proposal needs to articulate and You can also negotiate the operational terms of your contract at demonstrate how your services are value-added to the insurthe same time to either revise or take out specific language that ance company’s network and quality assurance programs. is not to your benefit. Here are a couple of examples taken from different payer contracts in different states from across the Don’t be afraid to use your clout. If you are the only urologist country: within 60 miles, don’t be afraid to make that a point. If the health plan has a rather large population of patients in the area, they need you more than you need them! 1. If you overcharge a patient in error and do not reimIt may take extensive research, but the end financial incentives burse the patient within two (2) weeks, the health usually justify the extra work you will need to complete or the plan can recoup the money to payback the patient on fees you will pay to consultants. your behalf and surcharge you (fine you) $100.00 per error. In my 30 years of experience, I have successfully negotiated 2. If you share your reimbursement rate information thousands of contracts. It takes time and diligence, but as you with anyone, including your colleagues, the health can see the benefits are plentiful. plan can recoup up to five (5%) of all monies paid to your practice within the prior twelve (12) months. Rochelle Glassman is the President/CEO and lead consultant at 3. If you choose to refer your patients to an out-ofPhoenix Physician Services; a nationally-recognized multinetwork physician, the referring physician (you) are faceted healthcare business consulting firm. Rochelle Glassman responsible for your patient’s additional out-of and the staff at Phoenix Physician Services have extensive expocket expenses. pertise working as physician advocates. If you would like more information, please do not hesitate to contact Ms. Glassman at 602-685-9500 or via email at Rochelle@pps247.com. These are charges that are often offset to future reimbursement, meaning they are difficult to contest by not paying! I could provide hundreds of additional examples, but these three would not work for any of our clients and should not work for you!

Referral Program Expanded!

How do I negotiate my contracts? Renegotiation of a contract is not easy. As we all know nothing is easy when it comes to dealing with the health plans and the process takes time, diligence, and expertise. Remember this is a business negotiation and the health plan is not going to pay you more unless you can clearly demonstrate why you deserve it. Most physicians have never read their insurance contracts; most have no idea where they are stored. Without knowing and understanding what is in your contract, it is hard to negotiate to improve its terms. Always keep copies of your contract stored in a secure medium! The best advice I can give you is this: It’s not what you know,

We are pleased to announce that for 2013 we have expanded our Referral Program!

$150 When you refer a colleague or another entity who joins MedResults Network, we will send you $150 as a way of saying thank you! This is an increase from our past successful program where we rewarded a referral with $100.

MedResults Network • 16400 Pacific Coast Hwy, #214 • Huntington Beach, CA 92649 • Phone: (562) 296-5655 www.MedResultsNetwork.com • info@MedResultsNetwork.com


News, Updates, and Information for the MRN Member

MedResults Newsletter Issue 4 • December 2012 •

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MedResults Network Expands Unique Value with MB Healthcare Companies

and on-site Certified Technicians. MB Healthcare Companies is currently offering Quanta USA, Sentient Medical Technologies, Laser Repair Network, and ReLight. This private-equity MedResults Network is the premier buying network for medical backed company is the spas and aesthetic physicians in United States. We have grown premier emerging energybased aesthetics company dramatically for three reasons: in North America. 1. Outstanding service to our members. 2. Our ability to provide significant discounts on products MB Healthcare Companies is and services which are important to your practice. able to operate as an equip3. Our ability to partner with the premier vendors in the ment consultant, capable of aesthetic space. providing over 50 pre-owned devices from the top 12 manufacturers as well as new equipment from Quanta USA. As an examOne of our newest agreements is with MB Healthcare Compa- ple, let’s imagine your clinic decided to expand into the rapidly nies. Based in Englewood, Colorado (with sales offices in Gold- growing market for Tattoo Removal Services. MB Healthcare en, Colorado and Order Processing in Park City, Utah), MB Companies is the exclusive North American distributor for the Healthcare Companies is unique in North America. It is the only Quanta Q-Plus C Laser. This device is the first and most powermedical aesthetics company which provides new equipment ful Q-switched laser platform in the world, combining an Nd:YAG from a leading manufacturer, pre-owned equipment from the emitting energy at 1064 nm and 532 nm, along with a Ruby laser top energy-based device companies in the world, and will also producing energy at 694 nm. As these three wavelengths effiprovide professional service and support through depot-repair ciently target most tattoo colors and benign pigmented lesions, this device is regarded as the technology leader worldwide. However, there are other tattoo removal lasers. One combines a Q-switched 1064nm and 532 nm with a 755 nm wavelength. Another utilizes an Nd:YAG to deliver energy at 532 nm, 585 nm, Use the MedResults Network 650 nm, and 1064 nm. MB Healthcare Companies can provide your choice of all three lasers to your practice; the Quanta Referral Program would be new while the other two would be refurbished and each one certified to operate at its manufacturer published to help a colleague! specifications. This unique capability allows MB Healthcare to consult with you as to the best ‘fit’ for your practice, considering If your referral becomes a member, important criteria such as technology and price.

STEP #11

MedResults will send you $100.00

Jim Parrott, MedResults Network President agrees that MB Healthcare is a perfect fit for the network. “We are impressed with the superior value proposition delivered by MB Healthcare. The product quality and service delivery is impressive. But we dug deeper to really understand. Here’s what we found. First, MB Healthcare is not burdened with public company costs. They have a strong Balance Sheet and no debt. By avoiding these costs, they are able to pass their savings on to MedResults Network practices. Additionally, they have significant expertise in aesthetics, which allows them to focus on the right technology at the right price at the right time. They target validated technology delivering clinical efficacy and avoid technology fads and product miscues.” MedResults Network Expands… Continued on Page 7

MedResults Network • 16400 Pacific Coast Hwy, #214 • Huntington Beach, CA 92649 • Phone: (562) 296-5655 www.MedResultsNetwork.com • info@MedResultsNetwork.com


News, Updates, and Information for the MRN Member

MedResults Newsletter Issue 4 • December 2012 •

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AESTHETIC ADVANCES: What’s New in the World of Aesthetics

Industry Acquisitions VALEANT ACQUIRES MEDICIS

MCKESSON PURCHASES PSS

ALLERGAN ACQUIRES SKINMEDICA

In early September, Medicis announced that they were acquired by Valeant Pharmaceuticals Intl., (VRX) Canada’s largest publicly traded pharmaceutical company. At this time we have been informed that there is no change anticipated with the relationship between Medicis and MedResults Network and that there is a possibility that our relationship could be expanded! We continue to have a great relationship with Medicis and will keep you advised of any changes.

McKesson Corp, the largest pharmaceutical distributor in America, announced on October 25th that it is acquiring PSS World Medical for $1.62 billion. The $29 per share agreement also included the assumption of $480 million in debt. While the acquisition could help McKesson improve its success in areas such as privatelabel brands and diagnostic tests (where PSS already has a strong presence), McKesson’s purchase of PSS could be a huge win-win for both parties. Essentially, McKesson gets the scale it was looking for in its med/surg distribution unit and PSS World Medical gets the financial resources of a much larger company.

Late November, Allergan Inc. moved into the skin care market through their acquisition of major topical aesthetics company, SkinMedica Inc. The $350 million purchase also included an incentivited plan for SkinMedica which could result in an additional $25 million to the skin care company if they reach ‘unspecified’ performance goals. This comes after the announcement that Allergan could be divesting itself of its obesity products. While the sale will not include SkinMedica’s newly acquired mineral makeup line, Colorescience, the purchase will round out Allergan’s aesthetic offerings to their present clientele.

(Sources: *Investopedia, McKesson Buys Growth by Acquiring PSS World Medical, 10/25/12. *Armstrong, Drew. Mckesson Plans to Buy PSS World Medical for $1.62 Billion. Newsweek. 10/25/12.)

(Sources: *Allergan to buy SkinMedica unit for $350 million. LA Times. 11/16/12. *Rubin, Ben Fox. Allergan to buy SkinMedica for $350 million. Fox Business. 11/16/12.)

For more information regarding our current rebates on Medicis injectables, please contact us at: Jamie@medresultsnetwork.com. We’ll be happy to send you our rebate schedule and our MedResults/Medicis Rebate Tool to help maximize your quarterly costsavings!

Hydrate Your Skin Obagi’s Newest Product, Hydrate™, Enhances the Nu-Derm® System! Obagi® Medical Products, Inc., a leader in topical aesthetic and drate also showed consistent imtherapeutic skin health systems, has announced the addition of provements in moisture retention through 8 hours and as well as a 92% a new facial moisturizer aptly named Obagi Hydrate™. improvement in the moisture content Hydrate is a multi-action moisturizer that utilizes Hydromanil of the skin within 2 hours. technology. Hydromanil is a natural moisturizing agent that is derived from the seed of the tara tree, known to gradually deliv- Hydrate is allergy tested and is clinier moisture into the skin. The innovative moisturization process cally proven to be safe, non-irritating, works from the inside out to help enhance skin smoothness and non-sensitizing, hypoallergenic, and flexibility. First, the non-occlusive surface action prevents tran- non-comedogenic. It has been spesepidermal water loss and provides immediate moisturization. cially formulated for all skin types and Then, the internal action continuously releases active moisturiz- has the added ingredients of shea ing compounds within the skin, supporting all-day moisture pro- butter, mango butter, avocado, and tection. glycerin. Hydrate is clinically proven to have immediate and long-lasting Hydrate will be featured in the new effects on skin barrier function and has demonstrated a 51% Obagi Nu-Derm® System, and will also improvement in water loss 8 hours after initial application. Hy- be sold separately in physician offices. MedResults Network • 16400 Pacific Coast Hwy, #214 • Huntington Beach, CA 92649 • Phone: (562) 296-5655 www.MedResultsNetwork.com • info@MedResultsNetwork.com


News, Updates, and Information for the MRN Member

MedResults Newsletter Issue 4 • December 2012 •

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WE WANT TO MEET YOU! Tradeshows, Conferences, and Annual Meetings MedResults Network has committed to exhibit at the American Society of Cosmetic Surgery (AACS) 2013 show. The conference is being held at Caesars Palace in Las Vegas from January 16th-19th. We will also be at The Aesthetic Meeting 2013 in New York with ASAPS and the ASPS Annual Meeting in San Diego later in the year. We look forward to seeing you there, meeting you in person, and having the chance to review cost-saving opportunities with you directly! Also, please look for our bags at the 27th Association of Dermatology Administrators & Managers (ADAM) Annual Meeting in Miami from February 27th through March 1st.

 How do I receive rebates from This past year we’ve had over 500 mediMedicis and Merz? Every quarter that cal practices and medical spas join you purchase from either Medicis MedResults Network. While we’re de(Restylane, Perlane, & Dysport) or Merz lighted to welcome so many new faces (for Radiesse only), you will receive a to the group, we realize that many of rebate. As soon as you join MedResults our new members don’t know how to Network, you are automatically entitled take advantage of their new-found FAQs to Maximize to rebates from both vendors. For your savings! For all of those members who Medicis purchases, you will receive a Your Membership! are anxious to find out how to maximize rebate from MedResults based on the their use of the network and their overMedResults rebate schedule within two all cost-savings, we’ve created a special weeks after the end of each quarter. “cheat-sheet” of FAQs and things to remember when using With Merz, provided you ARE NOT on their autoship proour network! gram (MPP) for Radiesse, you will receive an automatic 10%

USING THE NETWORK

 Now that I’m a member, do I purchase products from MedResults Network or my present vendor? You continue to purchase from your sales rep or customer service as you normally would. Your membership in MedResults network SHOULD NOT change your relationship with your reps.  How do I receive discounts from the MedResults Network participating vendors? Whenever you place an order with your rep or customer service, ALWAYS be sure to mention that you are a member of MedResults and entitled to the discounts or benefits.

rebate within 30 days after the end of each quarter, directly from Merz.  My rebates from Medicis are going to be larger than what you offer. Can I still use your network for the other vendors I use? Yes. We realize that you can outgrow our rebate schedule if you purchase large volumes of injectables. If this applies to you, please let us know in writing that you’d like to be removed from our rebate program, but remain a member of the network. It’s that simple!

Using the Network Continued on Page 6

MedResults Network • 16400 Pacific Coast Hwy, #214 • Huntington Beach, CA 92649 • Phone: (562) 296-5655 www.MedResultsNetwork.com • info@MedResultsNetwork.com


News, Updates, and Information for the MRN Member

USING THE NETWORK

FAQs to Maximize Your Membership

MedResults Newsletter Issue 4 • December 2012 •

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Introducing the MedResults Educational Webinar Series

 Some vendors already offer a quarterly promotion or discount. Can I get their discount and still have yours? No. Unfortunately, you cannot “double-dip” on discounts and rebates. However, we can assure you that our offers are generally the best you can get throughout most of the year.

On November 8th, MedResults Network held its first educational webinar hosted by their preferred patient financing partner, Healthcare Finance Direct (HFD). Nancy Coy, Founder of HFD co -hosted the webinar with HFD’s National Sales Director, Tim Shanahan. The presentation, Adding New Aesthetic Procedures and Increasing Client Conversions received a great response from the attendees.

 I contacted my vendor rep to buy product and they hadn’t heard of MedResults Network. What do I do? Occasionally new vendor reps and customer service do not know about our discount agreements. Although this does not happen often, in these cases please contact us immediately! We will reach out to your vendor to ensure you receive the credit you deserve.

Due to the high interest in the webinar, MedResults Network has planned to do several webinars throughout the course of 2013. If you have an idea for a topic you’d like us to present, please submit your requests to info@medresultsnetwork.com. Additionally, if you’d like to sponsor or host a future webinar, please contact Jamie Parrott at Jamie@medresultsnetwork.com for more information.

 I’d like you to work with some of my vendors that are not on your list. Can I make suggestions? Of course! Most of the vendors we use have been direct referrals from satisfied members who wanted to share their success with the other members in our network.

The MedResults Webinar Series is a FREE service to all MedResults Network members. The series is designed as a way for our medical spas and aesthetic physicians to explore additional options for better practice management and increased costsavings! Stay tuned for our future webinar announcements!

Using the Network Continued from Page 5

MedResults Network • 16400 Pacific Coast Hwy, #214 • Huntington Beach, CA 92649 • Phone: (562) 296-5655 www.MedResultsNetwork.com • info@MedResultsNetwork.com


News, Updates, and Information for the MRN Member

MedResults Newsletter Issue 4 • December 2012 •

MedResults Network Expands… Continued We are also very excited about ReLight. Refurbishing hand pieces of energy devices is often from Page 3 very expensive. ReLight refurbishes over 85 Since the beginning of our relationship, MB different models of hand pieces from many Healthcare Companies has demonstrated the manufacturers in accordance with OEM specifilevel of partnership with its customers that we cations. In our estimation, no one does this as demand of our partners. In our due diligence efficiently and as cost-effectively as ReLight. for this agreement, we found that practices which purchased from MB Healthcare Compa- MedResults Network strives to provide the very nies were very pleased with what they received. best value to our customers. Seldom is the least Equipment was delivered quickly and profes- expensive option the most valuable. Yet in our sionally installed. There were few surprises experience, the most expensive options in medisince MB Healthcare does an excellent job of cal aesthetic devices rarely justify their cost. MB documenting the devices. As with any capital Healthcare Companies Chief Executive Officer equipment purchase or service, when an issue Christopher Carlton summarized, did occur, it was handled professionally and courteously. “MB Healthcare Companies is unique. We

MB Healthcare Companies’ Portfolio Quanta USA represents the complete line of energy-based devices from Quanta System (Italy). This includes various Lasers, IPL, and RF technology. Sentient Medical Technologies provides pre-owned devices from the top energybased manufacturers in the world. Sentient has a true passion for quality and will test and repair devices to original manufacturer specifications. This ensures that though the equipment has been previously owned, it is operating at the same output specification as its original manufacturer intended. This is critical from a safety and regulatory perspective.

are an integrity-based company in a unique market position. We are delighted to partner with MedResults Network because they are also unique within the aesthetics market. Together, we are dedicated to providing the best technology and value for aesthetic professionals in North America.”

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Trends in Facial Plastic Surgery From the 2011 annual survey by AAFPRS (American Academy of Facial Plastic & Reconstructive Surgery) we find the following:  42% of patients receive most of their information about plastic surgery from social media!

 70% of patients request procedures by describing the area of concern rather than requesting a specific We completely agree, and look forward to conproduct or procedure tinuing to serve med spas and aesthetic physicians with innovative and valuable resources such as our agreement with MB Healthcare  The majority of procedures (both surgical & Companies. nonsurgical) were perQuanta Laser Models formed on patients between the ages of 35 and Laser Repair Network offers complete service 60 and professional support for many major manufacturers. This third-party service provider is  Rhinoplasty continues to known for its responsiveness and professionalbe the most common proism. MedResults Network has developed an excedure performed on clusive relationship with Laser Repair Network, both women & men under and you may access this service regardless of the age of 35 whether you purchased devices through Sentient or Quanta USA.  Physicians across the board reported an increase in ethnic patients especially Hispanic, Asian and African Americans It is YOUR responsibility to notify us of any changes to your practice details. Please let us

Change of Plans? Keep Us Posted!

know if your address changes, a key contact leaves your office, you update an email address or phone number, or a Medical Director is replaced (as this will cause a change in your 8-digit Medicis DTC/Account number). Simply email: jamie@medresultsnetwork.com so that we can keep our records as accurate as possible.

 The average cost for both surgical & nonsurgical procedures decreased in 2011 vs 2010

MedResults Network • 16400 Pacific Coast Hwy, #214 • Huntington Beach, CA 92649 • Phone: (562) 296-5655 www.MedResultsNetwork.com • info@MedResultsNetwork.com


News, Updates, and Information for the MRN Member

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MedResults Newsletter Issue 4 • December 2012 •

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“SiteStaff and having live chat on our website is a noticeable differentiator vs. our competition. SiteStaff is very receptive to feedback on how we want inquiries handled and makes any requested adjustments very quickly. The talent level of the staff has been a pleasant surprise.” Serena Medspa—Dallas, TX “SiteStaff has been a great addition to our website. The staff is very helpful and well trained. Overall, we have had a great experience working with SiteStaff and are very happy customers." Allure Image Enhancement, Upland, CA JONATHAN BRYANT, AREA DIRECTOR

MedResults Network is growing...

JONATHAN.BRYANT@MYSITESTAFFREP.COM

We’ve recently moved and expanded! If you haven’t done so already, please update your records to reflect our new address:

MedResults Network 16400 Pacific Coast Hwy, Ste 214 Huntington Beach, CA 92649

This past September Hillary Anderson joined the MedResults Network team and now works closely with our Executive VP, Jamie Parrott. Hillary’s role is not only to provide assistance to our executive team here at MedResults Network, but primarily to provide support to our most important asset, YOU—our members! Hillary has a strong background in operations and marketing so she’ll be a major part of our growth moving forward.

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MedResults Network • 16400 Pacific Coast Hwy, #214 • Huntington Beach, CA 92649 • Phone: (562) 296-5655 www.MedResultsNetwork.com • info@MedResultsNetwork.com


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