Lyric CEO Rajeev Ronanki, M.S., on the Drawbacks of Contingency Payment
In this second segment of an interview with Managed Healthcare Executive, Rajeev Ronanki, M.S., CEO of Lyric, a payment integrity company, discusses the drawbacks of such companies being paid on a contingency basis in contrast to Lyric's subscription model.
"There are hundreds of vendors that say, 'Hey, we'll do something and find some obscure thing in your claims data that you can recover,' which sounds attractive and no effort on the customer's part. They're shipping their claims and getting something for it," he said. Ronanki called it a "free lunch" as far as the health insurers are concerned.
But Ronanki said the contingency payment removes incentives to educate providers and to get "to the root cause of why these errors happen in the first place, fixing the errors and inaccuracies." The current system is not sustainable, in his opinion, and needs to get "fixed and reimagined."
"That reimagination is to get the right transaction right in the first place," Ronanki added, "get it right in real time, make the provider experience better, make the member experience better and, in the process, make the system more efficient."
Conversations With Perry and Friends: Paul Fronstin, Ph.D.
May 9th 2025Perry Cohen, Pharm.D., a longtime member of the Managed Healthcare Executive editorial advisory board, is host of the Conversations with Perry and Friends podcast. In this episode, his guest is Paul Fronstin, Ph.D., director of health benefits research at the Employee Benefit Research Institute.
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Conversations With Perry and Friends
April 14th 2025Perry Cohen, Pharm.D., a longtime member of the Managed Healthcare Executive editorial advisory board, is host of the Conversations with Perry and Friends podcast. His guest this episode is John Baackes, the former CEO of L.A. Care Health Plan.
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