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| Dear Friend,
Insulting first offers.
We’ll take your $15 billion stipend, but as to those strings you put on it, “F*^%” you”.
No, it’s not a perfect analogy to medical group–hospital negotiations, but, well, it’s close enough for government work.
TSMC, the world’s largest contract microchip maker, is balking at up to a $15 billion government stipend in connection with its construction of two new chip factories in Arizona in which TSMC will invest $40 billion.
The problem isn’t the $15 billion, it’s that the government has put some strings it, such as “tell us how you are spending it” or “if you make more than $X, give us some of the money back”.
As an aside, how you or I conceive of the wisdom of, to put the nicest moniker on it, “public --private partnerships”, is beside the point.
What is almost directly on point is how TSMC, which I doubt even needs the money, is playing its cards. Essentially, they are saying, “we know that you need us more than we need you, so we’ll just take the money, no strings attached.”
It’s true that there are distinctions between one time negotiations, what I call Transactional Contracts™, say for the purchase of some real property, and Relationship Contracts™, the negotiation of a hoped-for many decades long relationship between your medical group and some facility. But it’s not clear that TSMC’s dealings with the government aren’t hoped by both parties to be of the Relationship variety because far more than two new chip factories are needed.
Some consultants think that it pays to be reasonable when making a first offer. Those with an understanding of human nature don’t think that that advice is very, well, reasonable.
Of course, being “unreasonable” from the hardball perspective and being “unreasonable” from the perspective of wanting to be liked are two wildly different things. Note that using legal counsel wisely in negotiations allows you to maintain your need to be liked while still pushing the envelope. “It’s Weiss’s fault that we asked for $15 billion. Had we known, we’d have come in at $12 billion.” Either way, try being a bit more unreasonable.
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| | Wednesday - Why Your Past Doesn't Count - Medical Group Minute
Watch the video here, or just keep reading below for a slightly polished transcript: Many medical groups (actually, many of all sorts of businesses) shortchange their future as a result of their past.
It doesn't matter if that past were highly successful, so-so, or even a complete disaster.
The problem is that the group's leaders believe that the past determines the future. Yet, from information that's readily available to us all, the past does no such thing. It's neither a guaranty, nor a preventive, of future success.
But for a government bailout, General Motors' years of success would never have gotten it past 2009.
Henry Ford ran his first two auto companies into the ground, and bankruptcy, before starting Ford Motor Company.
Set your sights on your desired future. Sure, tell yourself the truth about your current situation, but that situation is not an anchor. Don't use the past, or even the present, to set your course. Use the power of your desired future to pull you toward it.
Take only that part of your past along on your trip as will be beneficial. Leave the rest behind or, even better, donate it to your competitors.
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| | | Listen to the podcast here, or just keep reading for the transcript.
They say that beauty is in the eyes of the beholder.
But the value of a physician's interest in a medical group is in the eyes of the holder -- the holder of the pen, so to speak: those in control of the terms of the buy-in and buy-out provisions of your group's shareholders or partnership agreement.
So what's a membership interest worth?
No time to think about this now? Fine with me.
But it's not going to be fine for you because sooner rather than later someone is going to leave the group and they are going to demand "their share."
They'll claim that the group really doesn't exist - it was just a pass through and they want their accounts receivable. Or worse, they'll claim the group and you, yes, you, personally, owe them a fiduciary duty to schedule them and to collect "their" accounts receivable. "So where's my money!"
What is the formula for determining value? Does that formula trigger or destroy other rights and privileges that the group wants to assert in its organizational documents?
Think about it. Now.
It's better than worrying about it, or being sued, later.
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| | Help Us Help You With Helpful Content
What tailored content would you most like to see during this
time? How can we focus on solutions to your most pressing strategic concerns?
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| | | | We all hear, and most of us say, that the pace of change in healthcare is quickening. That means that the pace of required decision-making is increasing, too. Unless, that is, you want to take the “default” route. That’s the one is which you let someone else make the decisions that impact you; you’re just along for the ride. Of course, playing a bit part in scripting your own future isn’t the smart route to stardom. But despite your own best intentions, perhaps it’s your medical group’s governance structure that’s holding you back.
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| In fact, it’s very likely that the problem is systemic. The Medical Group Governance Matrix introduces a simple four-quadrant diagnostic tool to help you find out. It then shows you how to use that tool to build your better, more profitable future. Get your free copy Free.
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| | | | Whenever you're ready, here are 4 ways I can help you and your business:
1. Download a copy of The Success Prescription. My book, The Success Prescription provides you with a framework for thinking about your success. Download a copy of The Success Prescription here.
2. Be a guest on “Wisdom. Applied. Podcast.” Although most of my podcasts involve me addressing an important point for your success, I’m always looking for guests who’d like to be interviewed about their personal and professional achievements and the lessons learned. Email me if you’re interested in participating.
3. Book me to speak to your group or organization. I’ve spoken at dozens of medical group, healthcare organization, university-sponsored, and private events on many topics such as The Impending Death of Hospitals, the strategic use of OIG Advisory Opinions, medical group governance, and succeeding at negotiations. For more information about a custom presentation for you, drop us a line.
4. If You’re Not Yet a Client, Engage Me to Represent You. If you’re interested in increasing your profit and managing your risk of loss, email me to connect directly. |
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