Negotiation Styles In Healthcare

One may argue that through each day we take part in negotiations. “Negotiation is a dialogue between two or more people or parties intended to reach a beneficial outcome”(Wikipedia). In healthcare, we all have a common goal to provide exceptional quality care to our patients. There may be an imbalance between payer and provider. It is important to identify this imbalance and successfully prepare to negotiate or renegotiate these contracts. The cost of healthcare has gain a major focus of attention with legislature and policy reform. Healthcare in general, has had a huge impact on the U.S. economy. In today’s health care delivery system, contracts are negotiated between the following agencies: insurances, physicians, institutional providers,

and service providers.
In order to run a business successfully, contracts need to be negotiated frequently in order to sustain viable revenue. Healthcare is a business and financially stability is crucial for an organization to survive in this financial climate. A solid strategic plan should be in place in order for the organization to have growth and sustainability. In order to help organizations leverage, a SWOT analysis tool can be sued as part of strategic planning to evaluate and assess for the following within the organizations strengths, weaknesses, opportunities and threats to the organizational practice. The report can identify the internal strengths and also assess the organizational weaknesses can threaten the organizational financial climate and overall stability. A SWOT analysis will help capture relevant data, review the data and perform a break down analysis of the cost to reimbursement. Contracts with payers should be not only negotiated initially but it is vital to understand the contract term and re-negotiate certain reimbursement elements. It is also advised to start discussions with respective payers at least 150 days prior to when the contract term end.
Described in the literature, there are mainly five different negotiation styles.

The five different styles include competing, collaborating, compromising, avoiding and accommodating. The competing negotiation style is egocentric and narrow focus no matter what the cause. The style is utilized in pursuit of their own individual needs. Usually, “they use whatever power and tactics they can muster, including their personality, position, economic threats, brand strength or size or market share”. They are often perceived by others as aggressive or psychotic. The style is used when results need to be achieved quickly. If both partiers use this style during negotiations, often results will not be achieved and things with come to a deadlock hold. This negotiation style is often perceived as

bullying.
The second negotiation style is accommodating and the exact opposite of competing.

The perception of giving in will eventually win people over and give you the
The third negotiation style is to Avoid, which may result in a I lose and you lose outcome. This type of style is often referred to as “passive aggressive” and used by individuals that do not like conflict.
The fourth negotiation style is compromise, which means I lose and win some and you lose and win some. This style usually results in meeting halfway between both party’s.
The fourth type of negotiation style is Collaborative. In order for goals to be met in business this style should be used most. This style is used most effectively when building the relationship with the other party matters. Both parties involved understand each other’s interests and

motivations.