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

1. 7 Elements of Successful Negotiations John A. Riherd Attorney at Law

2. 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

3. 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

4. 3. Decide whether you are willingto continue business without this payor • Quantify the impact on your practice

5. 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?

6. 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

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

8. 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

9. 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

10. 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

11. Questions?

13. John A. Riherd Healthcare and Business Attorney Portland, OR 503-641-6262 john@riherdlaw.com