Strategy I: Separate Negotiables from Non-Negotiables
Negotiations are interpersonal in nature even when they are between organizations. An important prerequisite of any successful negotiation is for the two parties to take each other seriously (Van Larr & Krabbe, 2018). For payer negotiations with a healthcare provider, it is important for the provider to take the payer seriously every time a negotiation comes up. To attain this, the payer should be able to identify and separate negotiable and non-negotiable issues. Spending time belaboring non-negotiable issues can take away the goodwill that would help in the negotiable issues. In negotiating only the viable issues, the payer will increase the propensity for success.
Strategy II: Provide Cost-Basis Evidence to Support Negotiation Claims
The second important strategy is ensuring that every negotiation involves comprehensive cost-basis evidence to support the claims made during the negotiation process. The proviso of healthcare services is an expensive process that comes with costs in terms of materials, equipment and human talent. A negotiation that does not seem to factor the cost of services provided will fail the test of reasonableness, thus interfering with the negotiation process. To avoid this, the payer should provide evidence to show that the offers made in negotiation have factored the costs of the services of the provider. Providing cost-basis evidence will also check the excesses of the service provider in future claims (Riley, Coult & Love, 2019).
Delegate your assignment to our experts and they will do the rest.
Strategy III: Use Prompt-Payment Incentives
All negotiations should take a quid pro quo basis where each party feels that something was gained in exchange for what has been given (Van Larr & Krabbe, 2018). When payers negotiate the claim, their primary aim is to have those claims reduced. To get the reduction the payer can give something in return by offering to make prompter payments for lower claims. Healthcare services providers also have their own supply chain with suppliers and in some cases, financiers (Ginter, Duncan & Swayne, 2018). Offering to pay lower bills but on an earlier date can be of benefit to the service provider, thus forming an incentive for lowering the claim.
References
Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). The strategic management of health care organizations . John Wiley & Sons.
Riley, W. J., Coult, N. M., & Love, K. (2019). An analysis of price gouging in the US healthcare system. Journal of Hospital Administration , 8 (6).
Van Laar, J. A., & Krabbe, E. C. (2018). The role of argument in negotiation. Argumentation , 32 (4), 549-567.
