Fight or Perish

When I conduct workshops about how to negotiate, I usually wear a particular tie purchased from an art museum gift store. This tie depicts the gaunt, stylized man in the Edward Munch masterpiece “The Scream.” The central figure is an almost skeletal wide-eyed man whose mouth is shaped into a scream, surrounded by portents of chaos.

This depiction, I suggest, captures the feelings most home care providers have about contract negotiation. This fear and loathing is a shame. Negotiation is something we must address in virtually every interaction throughout every day, and it is not limited to formal contract negotiation.

Improving our ability to negotiate generally pays big dividends. Conversely, we can learn much about how to negotiate contracts more effectively by observing how we handle our successful daily interactions with others.

We have previously identified negotiating “secrets” for myriad contracts with managed care organizations (MCOs), vendors, service providers and lessors. (See HomeCare, October 2004.) We evaluated secrets to implement before commencing discussions as well as secrets for initiating a dialog with the other party. Now, let's addresses some secrets you can use during the actual negotiation sessions.

Don't be afraid to ask

In beginning negotiations, always ask the other party to justify its assertions, and then determine whether the answer seems credible and realistic. Protect yourself by flagging all language that you're not sure about, and then ask the other party's representative to clarify each item. This includes seemingly straightforward words like “adequately,” “appropriate,” “insufficient” or “other” that people may interpret differently.

If the other party's representative fails to put the clarifications in writing or says he or she doesn't have the time, write down what you believe the ambiguous language means and ask the other party to confirm that your interpretation is correct. Then you can start to negotiate the more contentious parts of the contract without having to worry that you've lost bargaining chips just getting the clarifications or the easier concessions.

Most of the time, a contract can be improved substantially just by clarifying the unclear provisions. This secret can also be valuable for dealing with the “take-it-or-leave-it” bullies.