Effective Ways to Negotiate Contracts for the Medical Field

Hospitals and medical practitioners have to negotiate with a variety of providers from supply vendors to insurance payors. Negotiation is a regular part of doing business. Here a few strategies to increase the effectiveness of your negotiations for better contracts.

Professional Help

One way to negotiate effectively is to hire a hospital contract consulting firm. These professionals have the experience to negotiate on your behalf for a specific area. If you are having trouble getting anywhere with your medical payors, it may be time to look beyond yourself and hire a professional. Often the amount of money saved can more than make up for the cost of professional help.

Call Them

Few things beat an actual conversation with the person you are negotiating with. Lots of things can get lost in the confines of the written word. A phone call adds a personal element to it often missed in an email. While you have them on the phone, you can clear up any misunderstandings and address any concerns. The human element can increase your chances of success.

Term Sheet

Start your negotiations with the big picture items on a term sheet. These broad items need to be agreed upon first before moving into the small details. If negotiations stall here, it may be time to look elsewhere for a different vendor or get outside help. The big picture items need a consensus before anything else can be agreed upon.

Take Time

Don’t hesitate to take your time with the process. Trying to rush the process can end up with a less-than-stellar contract for your business. Agreeing to a rushed contract could set a negative tone for the life of your relationship. Instead, focus on getting the term sheet agreed to then the details. With some companies, this process may take days and with others, it may take months. Don’t settle for less simply because you want to get the process over with.