7 Elements of Successful Negotiations John A. Riherd Attorney at Law

1. Know your objective   Identify short term and long term goals   Review your contract - understand ALL possible opportunities   Select the primary person and back up personnel to advance the negotiation   Know your "bottom line"   Remove emotion from your objectives and proposals

2. Make certain you know the financial impact of the payor's decision (past and future) 2. Make certain you know the financial impact of the payor's decision (past and future)   Have accurate numbers and projections   Know what the payor knows

3. Decide whether you are willing to continue business without this payor   Quantify the impact on your practice

4. Understand the payor   The most important customer is not the member nor the provider; it is the purchasers, and they want lower health care costs overall   How familiar with you are the payor's provider representatives?

4. Understand the payor (cont’d):   In a tougher economy, payors are looking to cut costs; focus is on market share and cost advantage over rivals   Has the payor gained or lost market share; if so, in what markets?   Payors are in the network business

5. Negotiate smartly:   Identify goals   Prepare   Take every negotiation seriously   Know key issues   Plan alternative scenarios

5. Negotiate smartly (cont’d):   Sell how you are different   Identify and support your position with data or demonstrate the ways you add value to your patients or the community   Explain how your patients are unique

6. Be respectful, but firm   Anticipate that you will need to go up the chain of command   The job of the initial provider relations person is defense

7. Try to identify an advantage for the insurer as well   Most payors are willing to work with you   Payors are always looking for ways to secure an advantage for themselves

Questions?

John A. Riherd Healthcare and Business Attorney Portland, OR