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Contracting and Negotiation

Contracting and Negotiation. DOQ-IT Education Session Contracting and Negotiations. Objectives For This Session. Should be able to: Identify 1-2 areas of EHR contract review and negotiation. Name 2 financing options for EHR purchase. So you have selected an EHR…. Based on…

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Contracting and Negotiation

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  1. Contracting and Negotiation DOQ-IT Education Session Contracting and Negotiations

  2. Objectives For This Session Should be able to: • Identify 1-2 areas of EHR contract review and negotiation. • Name 2 financing options for EHR purchase. Footer text goes here

  3. So you have selected an EHR… • Based on… • A vision for your practice utilizing an EHR • Project Charter • Communication Plan • You have selected… • An EHR that meets your expectations and goals • You can explain why you selected it • You know what it is expected to do Footer text goes here

  4. STOP Let’s Sign The Contract! • Contracts protect the vendor • Contracts require your review and negotiation Footer text goes here

  5. Sections of a Contract General Terms Software Interfaces and Conversions Services (Implementation and Training) Support and Maintenance Payment Schedule Hardware Footer text goes here

  6. General Terms • General Contract Structure Items • The legal ‘stuff’ • Limitation of liability • Indemnification • Force Majeur • Warranties • Disclaimers • How to get out of the contract • Default • Bilateral termination • Transferability Footer text goes here

  7. General Terms • Protecting your work • Data ownership • Source code escrow • HIPAA • Government regulations Footer text goes here

  8. Software • Two types of contracts: • License • Term or perpetual • Subscription • Term Footer text goes here

  9. Software • 3rd party and ancillary software required • Additional cost • System upgrades • Process • Frequency • 3rd party patches and updates • Service fees Footer text goes here

  10. Interfaces and Data Conversions • Interface • Electronic source of information • Real-Time • Batch • Data conversion • Electronic load of data • One time • Two (2) payment options: • Flat fee • Time and materials Footer text goes here

  11. Interfaces and Data Conversions • Evaluate • All data sources to determine number/type of interfaces • All data currently stored electronically that you want in your EHR • Cost considerations • Leverage existing interfaces (hospital or community) • Negotiate flat fee when possible • Interface upgrade process • Costs on both sides of the interface • Support fees Footer text goes here

  12. Services • Implementation • Training Footer text goes here

  13. Services: Implementation • Understand Services and Costs • Description of Services • Project Management • System Customization • Operational Redesign • Hardware/Network Implementation • Resources • Timeline Footer text goes here

  14. Services: Training • Training • Who is Trained? • Train The Trainers vs. Train The End-Users • Resources • Number and Type • Additional Training Resources • Online courses, take home CDs and Manuals, Other • Re-Training • Availability and Costs Footer text goes here

  15. Support and Maintenance • Typically 20% of Software Cost • Calculated on List Price • Includes Software Upgrades and Documentation • Support During Normal Business Hours • Annual Increase • Suggest 3% Footer text goes here

  16. Support and Maintenance • Define Standard Support Services • Hours • Process • Turnaround Time • Respond vs. Resolve • After-Hours • Escalation Process • What is Supported? • Software, Hardware, 3rd Party Applications, Interfaces Footer text goes here

  17. Payment Schedule • Milestones Based On… • Productivity • 25% Upon Contract Signing • 50% Upon 1st Physician Live • 15% Upon 5th Physician Live • 10% Upon All Physicians Live • Timeline • 25% Upon Contract Signing • 25% Upon Software Delivery • 25% Upon Go Live • 25% Upon 60 Days Post Go Live • Hybrids Footer text goes here

  18. Payment Schedule • Guaranteed Pricing • Optional Modules Footer text goes here

  19. Hardware • Two Options: • Local • You Own and Support the Hardware • ASP • Hosted at Remote Location • Minimum vs. Recommended Configuration Footer text goes here

  20. Hardware: Local • You own and support the hardware • Guidance on proper backup procedures and maintenance • Daily, weekly, monthly maintenance • Service level agreement (SLA) • Priority escalation for hardware failures • Know how to acquire a new server • Downtime Procedures Footer text goes here

  21. Hardware: ASP • Hosted at Remote Location • Service level agreement (SLA) • 99.999% Uptime • Escalation path • Penalties • Understand disaster recovery plans • Downtime procedures Footer text goes here

  22. Other Considerations • Help Is Available • Attorney • IPA/PHO • Consultants • Clarifying Contract Language • Timing • End of Month • End of Quarter Footer text goes here

  23. Other Considerations • IPA/PHO Collective Bargaining Power • Discounts • Affiliations • Industry Partners • Understand Your Responsibilities and Contractual Commitments • Make Sure Your Contract Is Win/Win Footer text goes here

  24. How do I pay for this? Footer text goes here

  25. How Do I Pay for This? • Capital • Financing • Traditional bank financing • Lease financing Footer text goes here

  26. Comparisons of Financial Modelson a Year By Year Basis • Examples Sub -Hosted Sub - Owned Lic -Finance Lic -Purchase Footer text goes here

  27. Conclusion Did we meet the objectives? Should be able to: • Identify 1-2 areas of EHR contract review and negotiations. • Name 2 financing options for EHR purchase. Footer text goes here

  28. Contact Us Footer text goes here

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