Negotiations With Vendors in Healthcare Essay

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Health care information systems provide significant benefits in managing a healthcare facility and, as a result, serve the well-being of patients. Getting a system is a long-term process that requires attention to many details and aspects. After choosing a suitable vendor, it is necessary to negotiate a contract and discuss cooperation. As the last stage of the system acquisition, negotiations require the efforts of an interdisciplinary team, discussion of many details and goals, and caution to avoid mistakes.

Contract negotiations primarily include contracting parties – the medical facility and the vendor. At the same time, Stoltenberg (2017) claims that a committee of stakeholders – specialists from different fields, who selected the system is also necessary for negotiations. In particular, this group should include the financial and IT professionals, representatives of medical personnel, and the lead negotiator. It is also important to note that negotiations with the vendor are complex, and, in addition to the mentioned specialists, the assistance of lawyers is mandatory. As a result, taking into account the views of the users of the system and other stakeholders will be beneficial for the contract.

The discussion and the final contract should contain several essential details, which should be as transparent as possible for the parties. In particular, negotiators should discuss the duties and responsibilities of the participants. Moreover, the issue of patient data confidentiality and ownership is critical (“What are imported items,” 2019). All rights on the data must belong to the medical institution even after the termination of the contract (“Negotiating the electronic,” n.d.). The conditions for implementing the system, training for its use, the type of license, and actions in the case of critical circumstances, for example, bankruptcy or takeover, are also subject to discussion (“Negotiating the electronic,” n.d.). Details in the contract are necessary as a guide to action under any possible circumstances and avoid misunderstandings.

The details of the contract must be supplemented by specific terms, objectives, benchmarks, and metrics. For example, buyers should indicate their requirements and expectations for system performance and delivery date, and suppliers should confirm their ability to do so. Moreover, the contract should describe the equipment and other products necessary for the launch and operation of the information system. The agreement also includes the scope of settings that the organization can perform, the date of payment for the supplier’s services, and guarantees that it can provide (Wager et al., 2017). The inclusion of these elements will legally confirm the obligations and expectations of the parties.

Since negotiations can be confusing, the parties may expect some challenges. For example, Wager et al. (2017) note that some negotiators are turning the process into a blood sport, putting too much pressure on the contractor and causing disappointment. In the negotiations, it is crucial to establish trust relations so that cooperation is long-term and productive. Moreover, the challenges may be the closeness of the parties, the lack of information and planning, the rush of negotiators, and similar problems.

Thus, acquiring or updating information systems in a medical facility is a labor-intensive process divided into many stages, and the last is negotiations with a vendor. It can involve an interdisciplinary committee earlier assembled to select the system as it includes the necessary specialists whose knowledge will be helpful. During the negotiation and drafting of the contract, it is vital to consider many details such as confidentiality of data and include necessary milestones and metrics, such as dates of the obligations’ fulfillment. At the same time, the parties should carefully prepare for the negotiation process to avoid the main challenges. As a result of considering all the necessary factors, negotiations and the contract will benefit all parties.

References

Negotiating the electronic health record vendor contact. (n.d.). American College of Surgeons. Web.

Stoltenberg, S. (2017). 4 Tips for successfully navigating EHR vendor relationships. EHR Intelligence. Web.

Wager, K.A., Lee, F. W., & Glaser, J. P. (2017). Health care information systems: A practical approach for health care management (4th ed.). Jossey-Bass.

What are important items to include in a vendor contract? (2019). Health IT.gov. Web.

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