I watched as the cat watched the squirrel climb the tree. Intent on its goal, a moment or two later, the cat followed it up into the large oak.
Medical groups are often locked on target in connection with contract negotiations. The question is, is that target, that outcome, that goal the true end goal? If not, will accomplishing it foreclose or seriously hamper your ability to move forward?
Take, for instance, a medical group that negotiates with a hospital for some deal, an exclusive contract, for example. The group “wins” the contract but the deal is devoid of any restriction on the hospital poaching, or permitting a subsequent contracting group from poaching, the group’s employees working at that site. Was that contract really a “win” for the medical group? Is the medical group a “partner” in providing a service with the hospital, or is it a staffing service, just not one that will receive a fee?
Or, for instance, consider a deal between a physician group and a facility that includes prohibitions on the group from providing services for other facilities within the county. Was the goal really to obtain a single facility contract? Perhaps it was. But if it was to grow a larger business, or potentially to merge with, acquire, or sell to another group doing business within that geographical area, then the “win” could become a weight against movement toward that larger goal.
The key is to adopt both a short term and a long term view of your business. Cutting a deal along the way is a goal, but that goal must be seen for what it is. If it blocks future progress then it may not be worth it. They often say to “watch what you wish for,” but I’ve never heard it expressed as “watch what you negotiate for.”
The squirrel jumped from a large oak branch onto the wispy shoot extending from the tree across the street. The cat followed to the end of the branch and then froze. It stayed there for the rest of the morning, apparently stuck.
