NEWPORT BEACH, Calif. - May 18, 2009 - Conducted successfully, provider contract negotiations enhance a health plan's relationships with physicians and facilities and optimize its contracted rates for member care. Conversely, unsuccessful negotiations can compromise the competitiveness of both a healthcare payer's provider network and its contracted discounts.

"Fortunately, there are five concrete strategies payer organizations can take to improve contract renewals," said Rachael Jones, director of product management for The TriZetto Group, Inc., in her presentation at the recent World Research Group 10th Annual Network Contract Optimization Conference in Orlando, Fla.

TriZetto's five strategies for health plans seeking a better contract renewal process, said Jones, are:

1. Shorten the contract renewal process to spend less time negotiating;
2. Configure contracts to net the best mix of payments and terms to yield the lowest medical costs;
3. Minimize risk and add transparency to contracting and claims management;
4. Track performance - the health plan's - and negotiate from a stronger position with key providers in the network; and
5. Prioritize contracts and contract terms that have the most impact.

"Healthcare payers should take advantage of TriZetto's network management software solutions to implement these five strategies," Jones explained.

She cited the company's NetworX Modeler® application, which forecasts costs to help payers negotiate the best provider contracts, and TriZetto's NetworX Pricer® application, which automates claims pricing to enhance the efficiency of contract administration. Analysts agree that the right complement of processes and systems is critical.

"To respond successfully to healthcare market business and performance mandates, healthcare payers must manage their provider relationships with greater care, efficiency and agility than ever before," wrote analyst Janice Young in a Health Industry Insights report.* "As a result, homegrown and disconnected information systems and fragmented business processes provide many chances for healthcare payers to miss critical business opportunities."

Integrated Healthcare Management (IHM), TriZetto's industry vision, is a systems-science approach that aims to overcome disconnected systems and fragmented processes by converging benefits administration, care management and constituent engagement for vastly improved information-sharing and incentive alignment. The greater the convergence through IHM, explained Jones, the greater the opportunity to enhance the cost and quality of care for U.S. consumers.

To speak with TriZetto's Rachael Jones and learn more about specific elements of each of the five strategies for improved contract renewals, contact Schwartz Communications at 781-684-0770 or trizetto@schwartz-pr.com.

About TriZetto

Founded in 1997, TriZetto is a privately held healthcare information technology company in the U.S. With its technology touching half of the U.S. insured population, TriZetto is Powering Integrated Healthcare Management. TriZetto provides information technology solutions that enable health insurance payers and other constituents in the healthcare supply chain to improve the coordination of benefits and care for healthcare consumers. The company's offerings include enterprise and component software, hosting and business process outsourcing services, and consulting.

* Health Industry Insights, an IDC Company, Healthcare Payer IT Strategies Report, "Healthcare Payer Transparency Initiatives: Managing Provider Data," August 2007, Doc # HI208117, Janice Young.

CONTACTS:

Government Relations Contact:
Brad Samson
The TriZetto Group
949-719-2220
brad.samson@trizetto.com

Media Contact:
Melissa Bruno
Schwartz Communications
781-684-0770
trizetto@schwartz-pr.com