Growing enrollment in managed care plans among Medicaid recipients rep
resents a new market for these plans but presents challenges to those
providers that traditionally have served this population. To continue
serving Medicaid patients, community-based providers must develop cont
racts or other types of partnerships with Medicaid-contracting health
plans. This paper reviews the challenges to such collaboration and dis
cusses the practical issues that plans and community-based providers m
ust resolve to develop productive working relationships. Keys to succe
ssful collaboration are identified. Ways in which federal and state go
vernments can help the collaborative process are suggested.