1 / 25

Negotiating and Renegotiating Successful Tactics

Negotiating and Renegotiating Successful Tactics. February 23, 2013 Mike Valentine, MD Centra Medical Group – Stroobant’s Heart Center Cardiovascular Summit Co-Chair. Negotiating 101. Who are we? What arrangements are in place? What are our options? How can we succeed?.

amelie
Download Presentation

Negotiating and Renegotiating Successful Tactics

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Negotiating and Renegotiating Successful Tactics February 23, 2013 Mike Valentine, MD Centra Medical Group – Stroobant’s Heart Center Cardiovascular Summit Co-Chair

  2. Negotiating 101 • Who are we? • What arrangements are in place? • What are our options? • How can we succeed?

  3. Know Your Options • Medical Directorships • Cath Lab - Outreach Director • Non-Invasive Lab - CME • Clinical Quality • Co-Management Agreements • Call Coverage – ER / STEMI / Nights • Leadership / Management • Dyad Models

  4. Know Your Options continued… • Hospitalist Service • Recruitment Assistance • Joint Ventures • Horizontal Integration • Vertical Integration • Employment

  5. Negotiating 101 • NEGOTIATION is the means by which an agreement is reached. • You must start with the END IN MIND

  6. Negotiating 101 Success Humility Flexibility Mutual Gain (Win-Win) Failure Arrogance Ignorance Selfishness Do NOT Act Like A Cardiologist!

  7. Negotiating 101 • Key Advice • Know who the dealmakers are • Separate the people from the problem • Focus on interests, not positions • Use objective criteria • Invent options for mutual gain

  8. Negotiating 101 • Negotiation Language • Most Favorable Position/Maximum Plausible Position • Walk Away Position • BATNA (Best Alternative To Negotiated Agreement • Inexpensive Valuable Concession • Time Out

  9. Negotiating 101 • Five Steps in Negotiation • Prepare • Engage • Propose • Bargain • Agree

  10. Negotiating 101 • Successful Negotiation Means Each Side Feels: • Sense of Accomplishment • Other side cared • Other side was fair • Would do it again • Will keep the bargain • Can say thank you and mean it

  11. Negotiating 201 • Tough Love • Keep you friends close, but keep your enemies closer

  12. Negotiating 201 • Maximum Plausible Position • Bracketing • Reluctant Buyer/Seller • Higher Authority • Concessions • Impasses/Stalemates • Closing

  13. Negotiating 201 • Maximum Plausible Position • You go first • Bracketing • They go first • Best if you don’t know them well • Allows equal counter on either side • May get what you want! • Never say yes to first offer

  14. Negotiating 201 • Reluctant Buyer / Seller • Range up front • Walk away price • Feel / Felt / Found – key phrases • State position, then BE QUIET! Silence is Power

  15. Negotiating 201 • Higher Authority • Never be the decision maker • Leave ego at home – Appeal to theirs! • Concessions / Commitments

  16. Negotiating 201 • Impasses • Set them aside • Split the difference • Stalemates • Share risk • Win-Win • Change the teams, Remove the loser • Third party arbitrator • Always save face

  17. Negotiating 201 • Always use an expert • Double agents are invaluable • Verbal, then written • Never have a deadline

  18. Renegotiating 301 • Renegotiation starts the dayyousign a contract • Build and prove – Value and Trust

  19. Renegotiation Rules • Record the victories • Prove your value with Leadership! • Know the “Fair Market Value” • Keep your expert close • Reimbursement models are changing – more is at risk

  20. Renegotiation Assumptions Offensively you have: • Developed a relationship with the hospital • Committed to a common vision • Honed your decision making model • Created value in the system (and can quantify it) • Maintained productivity • CREATED TRUST Defensively you have: • (Unusual) Compensation escalator • Non-Compete Management • Cardiologist recruiting and employing exclusivity • Unwind provision • Medical records access • Understanding of renegotiation parameters at the outset

  21. Key Business Underpinnings • Health Systems attuned to changing reimbursement dynamics • In past, more wRVUs = better • Today, systems want to incentivize patient health management and efficiency • New definitions of productivity • Systems focused on flexibility

  22. Warning Signs • Health system complains about “losing money” on employed physicians • System approaches renegotiation as “take it or leave it” • Renegotiations are conducted on physician-by-physician basis • System discourages physicians of obtaining guidance from third parties

  23. Positive Indicators • System regards physicians as “adding value” • Physicians involved in CVSL management • Physicians have no post-termination non-compete • Or, only a “soft” non-compete, permitting return to independent practice • Renegotiation dialogue is open and respectful

  24. Final Thoughts • Financial discussions are often sensitive • Third party assistance may be helpful buffer with employer • Compensation renegotiations are meritably distracting • No perfect solution available, it is impossible to predict market changes • Set a deadline and stick to it

  25. Questions?

More Related