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Types of Negotiating Strategies Summary

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Health & Medical
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Rate negotiations can be trying for all parties involved, and the negotiations with North
Creek Health Care are no different, but it is possible to reach an agreement that everyone can be
happy with. There are specific strategies that can aid in creating a smooth negotiation process,
strategies that can vary from simply looking at rates to rewording gray areas of the contract as
well. According to the current literature on the topic, “Negotiating effective contracts requires
careful planning and a willingness to collaborate.” (Filipek, 2013). That same article also states
some specific strategies for preparing for rate negotiations, those strategies include:
Setting goals for the relationship
Looking beyond the rates
Addressing more than just the hospital
Developing a payer profile
Keeping options open
Other specific rate negotiation strategies focus more on competitive position, and more
specifically they do this by utilizing a comparison of charges. The comparison of charges method
compares the charges for one organization against the charges of similar hospitals or of hospitals
in the same region (Cleverly & Cleverly, 2018). This method is similar to what was used in the
scenario, the scenario looked at the charges for a similar hospital in the area and was able to use
the fact that this hospital was getting better reimbursement rates than they were. Some examples
of specific charges that can be levied are inpatient reimbursement rates, the ability to charge
patients for services outside of their plan, or even average patient costs between varying
reimbursors (Toolwire, n.d.). The implementation of these strategies would help to aid in a
smooth negotiation process that benefits both parties.

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Rate negotiations can be trying for all parties involved, and the negotiations with North Creek Health Care are no different, but it is possible to reach an agreement that everyone can be happy with. There are specific strategies that can aid in creating a smooth negotiation process, strategies that can vary from simply looking at rates to rewording gray areas of the contract as well. According to the current literature on the topic, “Negotiating effective contracts requires careful planning and a willingness to collaborate.” (Filipek, 2013). That same article also states some specific str ...
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Very useful material for studying!

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