In order to be successful with these challenging activities, the physicians and clinicians need to be an engaged partner in administrative, financial and supply chain activities and physician goals and incentives should be aligned with the strategic goals of the organization. Many times these activities get stalled because administration and/or supply chain personnel don’t have a clear understanding of the relationship between the physician and the vendor or vendor representative and how that impacts physician preference. Physicians are often paid speakers, medical experts and business contributors, or involved in developing new products for vendors and manufacturers. Questions should be asked up front so that this information can be disclosed and incorporated into discussions at the start of these activities. All too often the relationship dynamic that is most commonly observed is the alignment and partnership of the physician and the vendor or manufacturer instead of the alignment and partnership of physician with hospital or health system administration and supply chain. Administration and supply chain leaders need to garner relationships with key physicians because that alignment is key in helping the organization accomplish its strategic objectives, especially when it comes to working with key vendors or manufacturers. Having open communication and a clear understanding of the relationship is pertinent to devising the right strategy as well as successful execution of the activities that may involve those vendors or manufacturers.

To begin the physician engagement process, it’s important to speak their language. The activities and approach should be data driven and integrated with clinical and outcome-related activities. Physicians and clinicians are more compelled to be engaged and partner in administrative and supply chain activities when the data reflects the impact it will have on the cost per case or patient outcomes. For example, when there is data demonstrating the variation in cost per case by physician for a particular procedure, they’re more inclined to discuss what the cause in variation is and the impact it has on their practice and patient outcomes. The cause in variation among physicians or clinicians is often product or practice driven or both, therefore ensuring that evidence-based literature and best practice is incorporated to demonstrate the clinical or statistical significance within the variation.

To collaborate with physicians, it is important to share as much knowledge as possible, including financial, clinical quality, and value-added information relative to the vendors the physicians have relationships with. By being transparent, it is easier to engage them in a strategy and approach that best meets their interests and satisfies best practice and clinical quality standards as well as the financial interests of the organization, leading to a supportive and unified position relative to outcomes in vendor negotiations. When physicians are educated to the business side of vendor interactions in conjunction of assessing clinical quality and patient outcomes relative to products and devices they use, they are more likely to collaborate and be involved in the negotiations with the vendors, act on behalf of the organization financially and do what is clinically best for their patients.

When physicians review the data and facts and understand that administration and supply chain can assist in positioning their goals and objectives with vendors and manufacturers, it becomes a more strategic discussion and a win-win for all.