What is a payer-provider contract dispute, and why is ADR well suited to it?
Direct Answer
A payer-provider dispute is a disagreement between a health insurer (payer) and a hospital, physician group, or other provider, typically over the terms or performance of their contract — reimbursement rates, covered services, claim denials, audits, or termination of the relationship.
A payer-provider dispute is a disagreement between a health insurer (payer) and a hospital, physician group, or other provider, typically over the terms or performance of their contract — reimbursement rates, covered services, claim denials, audits, or termination of the relationship.
These parties usually have an ongoing, valuable relationship they would prefer to preserve, and the disputes are often complex and confidential.
Mediation and arbitration allow them to resolve the matter privately, with a neutral who understands healthcare contracting, without the public exposure and relationship damage of litigation.
Because the parties often continue doing business together, a negotiated resolution that keeps the relationship intact is frequently worth far more than winning a lawsuit.
Expert reviewer
Charles F. Manning, JD, R.Ph.
Charles F. Manning, JD, BS Pharm, RPh, is a Florida Supreme Court Certified Circuit Civil Mediator, attorney, and registered pharmacist whose practice is focused …
Reviewed August 28, 2026
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