Thanks,
Robyn Petrude.

Determine whether you need to negotiate a reduction in the overall debt amount, a payment schedule, or both. Sometimes you can pay the full amount of the medical debt, but you just need some time to do it. Sometimes the amount is so large that it would be virtually impossible to pay it in full. Know exactly what you need to make the situation manageable before you start negotiations.

Contact the doctor’s office or hospital before your medical debt is turned over to a collection agency. Once the debt is turned over to an outside collector, the doctor or hospital can only expect to receive a fraction of the amount billed. Rather than taking that step, the billing party might be willing to compromise and collect a smaller amount from you that will still be higher than what could be expected from a professional collector.

Make sure you are speaking with someone who has the power to do negotiations and give approval to a settlement. When you’re talking to a hospital, you may need to speak with a supervisor rather than a billing clerk. When you’re dealing with a doctor’s office, you might need to talk to the office manager or the doctor herself. Don’t waste your time talking to someone who cannot say “yes” to a settlement.

Lay out your offer and express your willingness to put it into writing. Be specific about the lump-sum settlement or payment plan you are offering. If you are willing to sign a contract, it will show your good faith. Make sure the billing party agrees to sign it, too; in this way the doctor or the hospital is also bound to the agreement.

By Barb Nefer, eHow Contributor

By Jeff Fulton, eHow Contributor

Goods vs. Services. When buying goods, you can generally take a more tenacious approach to negotiation. With services, negotiating can be a bit trickier, particularly when you are negotiating with the person who will ultimately be providing the services such as a consultant, accountant, graphic designer, or similar professional. These individuals tend to take pride in the work they perform and view your attempts at negotiating a better price as a devaluation of their work. They may respond by providing services that demonstrate that “you get what you pay for” instead of giving you their best efforts. So take a firm but diplomatic approach when negotiating with service providers.

Custom Orders vs. Mass Production. When you place a second order for mass produced goods, you probably won’t be able to negotiate a much better price than you negotiated for your first order. However, with custom-made goods, you do have a little leverage. On the first order, the supplier probably built 100% of its non-recurring costs (e.g., process design, set up, production instructions, etc.) into the fee you paid. If you end up placing an unplanned second order, the supplier has already recouped its non-recurring costs and, thus, your unit price should be lower than it was on your first order.

Technically Committed vs. Technically Uncommitted. Let’s face it. When other people in your organization have worked with a supplier to determine the technical specifications for what they are going to buy and only one supplier can comply with them, there is little leverage that you have in negotiation. So, when other people interact with potential suppliers, your negotiation power depends not so much on how you communicate with the supplier, but moreso on how you prepare your internal team. Everyone responsible for the technical decisions should be advised of these things:

1. No one should share a supplier or specification selection with suppliers until a purchase order is issued.
2. The less certainty a supplier has about getting the business will translate into more price flexibility.
3. Your approach is not necessarily designed to choose the lowest cost supplier but rather to ensure the lowest possible cost for the preferred specifications backed up by compliant supplier performance.



PurchTips – Edition # 140 November 27, 2007

By Charles Dominick, SPSM

To advance negotiations or to bring them to a close, it is often necessary to intervene in a strategic manner, either as an outside party to resolve the situation for the principal parties or as one of the principals. Five interventions that can achieve the negotiation’s goals are to compete with the other parties, to compromise, to accommodate, to avoid the issues or to collaborate.

1. Compete with the Other Parties

   • Competing with the other parties is an appropriate strategy when a quick resolution is required for a simple and straight-forward problem. It can also be used when the necessary solution is unpopular and cooperation from the other parties is unlikely. Proposals to achieve goals are presented in competition to the proposals of the other parties in an either/or scenario. Typical examples are cost-cutting or staff reductions. The strategy is characterized by high assertiveness, a lack of cooperation and a quick termination of the negotiations.

   Compromise with the Other Parties

   • A compromising approach is an appropriate strategy when all parties are of similar importance and all parties have some power to influence the outcome. It is characterized by bargaining and trading. While the final solution typically has the approval of all concerned, it does not give clear and optimal results for complex problems. It can be used to achieve a temporary solution quickly while a more permanent solution is being considered and prepared.

   Accommodate the Other Parties

   • Accommodation is a strategy which is characterized by high levels of cooperation. It is appropriate when the goals of the other parties are acceptable or when the other parties themselves are of strategic importance. It should also be used when achieving a particular goal is of great importanct to the other parties and when a key factor in the negotiations is to preserve future relations. The result is that present goals are sacrificed for future gains.

   Avoid the Issues

   • Avoidance of the issues is an appropriate strategic response when it is clear that the issues involved will not be resolved at the negotiations or when it is clear that any possible outcome would not be acceptable. The strategy is characterized by a lack of cooperation and a lack of assertiveness. It is essentially a non-negotiation and results in a quick termination without any resolution, an outcome which is the goal of the particular strategy.

   Collaborate with the Other Parties

   • Collaboration is an appropriate strategy for addressing complicated issues that require new, creative solutions in which all parties can achieve their goals. It is characterized by high cooperation and high assertiveness as each party presents its goals. Each party will also expect to have its goals treated with consideration and to have them reflected in the final outcome.

     While the other strategies can be practiced successfully by one side, collaboration requires that all parties participate sincerely. Collaboration is therefore more difficult to achieve and it takes much longer to reach the required consensus. Collaboration is nevertheless often attempted as a strategic option. It is the only strategy which guarantees a win-win situation for all parties and has an optimal chance of providing the best solution.

By Bert Markgraf, eHow Contributor

2- Consider your options. Know that the chances of you getting exactly what you want are slim. Have other back up ideas prepared so you can still get what you want, just in a different way.

3- Look for places of common ground. There are some things that are usually agreed on first. If you make a point to prove the things you both want it gives you the upper hand and makes you look like you are wanting to cooperate not just take, take, take.

4- Address issues in order of importance. A good negoitator has any diffefrent issues they want to look at and take into consideration. When the negotiation begins based on the things that both parties do not agree on, make sure you go through the issues from most important to least important. Most people get tired, or lazier as the negotiation goes on and you want to make sure that the most important things get done correctly and to your benefit at the beginning (when you have your most confidence and power!)

5- Know what the other side wants. Research what could be some possible wants for the other party. After that listen to what they have to say. You know what you want, so it will be easier to compromise if you can fully understand where the other party is coming from, while keeping yourself in mind. If possible set out an action plan before the negotiation of possibilities that may arise.

6- Be willing to compromise. When you go into a negotiation the chances of you getting exactly what you want are slim. Realize that you can compromise without losing what you want. It is possible to have a win- win situation.

7- Watch your behavior. Do not go into a negotiation being aggressive or cocky. This will usually put up a wall between the two parties. Watch your body language and the tone and volume of your voice. All of these things play a huge role in how well a negotiation goes. If it helps do some role play into a mirror before the negotiation. This way you will see how you come accross to the other party.