When Negotiating with a Physician, Consider the Organizational Impact

Posted on
November 8, 2016

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After familiarizing yourself with the background of the contract, physician, and position you are looking to contract, take a step back and determine the impact this position will have on the organization. Why does the organization need to pay someone for this position?

Establish goals and objectives

Before beginning a contract negotiation, determine the ideal outcome of the contract in terms of payment and work expectations. Know when you can compromise and when you can’t before any talks with the other party begin. Strategize with others to determine what the physician or group’s goals are; set realistic expectations for the arrangement. Are the expected number of hours realistic? Does the physician have the leadership skills needed to be effective?

Review your organization’s contracting and compliance guidelines

If your organization has written compliance guidelines for payment rates, review them so that both you and the physicians with whom you negotiate know the ground rules. If your organization doesn’t have written guidelines, consider creating them. Many organizations don’t pay above the 50th or 75th percentile without a rigorous approval process. Having guidelines creates an objective standard of payment and limits feelings of favoritism among physicians.

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