One of the first principles you learn when you start negotiating, regardless of how you start or why, is that you need to know what you can ask for and what the other side can and can’t afford to part with. Only then can you ask for things that you might be able to get, and only then will you be able to appeal to the other side’s needs without threatening their goals. Both of those things are key to getting them to give you what you need. When it comes to hospital managed care contract negotiations, many organizations have no one experienced enough with hospitals and care provisions to know exactly what is possible and what will be rejected, and that’s why many organizations trust experts to handle it for them.
Hiring Negotiators and Consultants
Whether you’re hiring consultants to provide you with the information you need to negotiate effectively or you’re turning over negotiations to an outside group, it’s important to have the specialized help you need whenever you negotiate with a new hospital for services. Many hospitals push for additional price increases beyond market norms, and finding the market norms requires a lot of research and sifting data as a result. Professional negotiators spend every day adjusting expectations and advocating for better care for healthcare organization members and clients, so that information is at their fingertips and ready for use to your benefit. This not only makes your organization better at arranging care for members, it also increases your profitability in the long run.
Expand More Confidently
One of the limiting factors a lot of healthcare organizations encounter when they want to expand their networks of provider organizations is an inability to maintain timely negotiations across the network due to staffing demands or other logistical concerns. When you trust those negotiations to experts and see the results they get, you can focus more on serving your membership and let them work on building your network and updating your old contracts. As the process gets more cost-efficient, most organizations can expand more rapidly and with greater confidence.