Contract Negotiation

The Challenge

• Information technology investments are growing more complex, and dollars involved are increasing dramatically Contracts are becoming more intricate
• Potential exposure to the institution is greater than ever; CIOs at most healthcare organizations (even large ones) only participate in a few large IT contract negotiations in their careers, while vendors do it every day
• CIOs are finding that the size and complexity of IT contracts today require specialized assistance to assure the institution is adequately protected against failure
• HCIC Experience
• HCIC Principals have participated or led in literally hundreds of IT contract negotiations, ranging in size from relatively small contracts to contracts valued in the hundreds of millions of dollars
• HCIC has worked with all major vendors, giving us familiarity with each vendor's preferred contract approach and areas of flexibility
• HCIC is recognized for our neutrality, as we do not do implementation work or other follow on engagements that might compromise our objectivity

HCIC Approach

• Our contract approach recognizes that a good contract agreement must work for all parties, and must adequately protect against foreseeable risk
• We seek to understand the factors that are most important to each party
• We recognize that each buyer is different, and that contracting approaches must be tailored to the individual situation
• We seek to work collaboratively with the client's team, including legal representatives, to assure that a seamless face is presented to the vendor
• We employ innovative approaches (such as risk/reward sharing) to assure that vendor and client incentives are as closely aligned as possible