Revenue Cycle Management System - Contract Negotiation Medical Technology Acquisition and Assessment Team Members: Joseph Dixon, Michael Morotti, Mari Pirie-St. Pierre, David Robbins and Nicole Wayne August 20, 2009

Review of Process Project Assignment – Revenue Cycle Management Statement of Work Request for Proposal Vendor Selection Contract Negotiations

Vendor Key Points Acceptance Testing, Section 3.1 – Hospital Counter Offer: 60 calendar days-7 calendar days – Compromise Code Escrow, Section b. – Hospital Counter Offer: Define business critical error – Compromise Fee Payment: Section 4.1 – Hospital Counter Offer: 20-25% fees – Compromise

Hospital Key Points Compliance with Law, Section 7.4 – Vendor Counter Offer: none – Compromise: changed language to honor Hospital’s Request Code Escrow, Section 7.61 (b) – Vendor Counter Offer: requested definition business- critical error – Compromise: reduced wait time for temporary release of source code due to business-critical error, as defined Training & Fees, Section 3.2 & Schedule B – Vendor Counter Offer: reduced training fees by 10% – Compromise: limit Vendor travel & hotel expenses

BATNA Hospital BATNA Vendor BATNA Warranty Accounts Receivable

What We Learned Revenue Cycle Management Partnership

Negotiating "Negotiation is a communication process in which the exchange of information is the key that enables the parties to find complementary interests that lead to agreement.” - Steven P. Cohen “Price is what you pay. Value is what you get.” - Warren Buffett ''You must never try to make all the money that's in a deal. Let the other fellow make some money too because if you have a reputation for always making all the money, you won’t have many deals.” J. Paul Getty , American Oil Tycoon, Billionaire

Questions & Answers

Good luck next semester!!