8-1 Discussion: Contract negotiation with external resources in crisis situations


In this assignment, you will discuss contract negotiation with external resources in crisis situations. You will determine which items are negotiable and nonnegotiable, as well as how to effectively negotiate.

In your initial post, address the following:

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  • Select one of the external resources you determined necessary to your final project in Milestone Two.
  • Determine the items you deem negotiable (e.g., terms, price), and explain your reasoning.
  • Determine the items you deem nonnegotiable (e.g., security features), and explain your reasoning.

In response to your peers, consider their initial posts. Is their reasoning sound for the items deemed negotiable and nonnegotiable? Explain. Is there something else they should consider?

To complete this assignment, review the Discussion Rubric.



External Resources Necessary

During instances of system downtime, the implementation of a Cloud-based Electronic Health Record (EHR) system ensures uninterrupted management of patient care by facilitating real-time access and efficient storage of patient information through any Internet-connected device, irrespective of geographical boundaries. Furthermore, the adoption of a Electronic Health Record (EHR) system guarantees adherence to HIPAA laws and regulations by restricting access to authorized individuals only. Consequently, healthcare organizations must not only choose an appropriate Cloud-based EHR system that offers the required functionalities but also ascertain the negotiable and non-negotiable components within the contractual agreement with the vendor.

Negotiable Items

The negotiable items should pertain solely to workflow and procedures that do not compromise the security, privacy, and compliance of Patient Health Information (PHI) with applicable laws and regulations. Consequently, the following are the items deemed negotiable.

Pricing Structure

The pricing structure of cloud-based Electronic Health Record (EHR) systems offers financial flexibility to healthcare organizations, enabling them to choose an approach that aligns with their financial standing. For instance, certain EHR vendors may impose a one-time payment model, which typically entails a higher upfront cost compared to subscription-based payments, which are typically lower and recurring. The payment model employed can also influence the availability of system upgrades for cloud-based EHRs. One-time payments often necessitate a new license payment when upgrading to a new or updated system. Conversely, subscription-based payments generally include system updates at no additional cost. Additionally, ongoing maintenance of cloud-based EHR systems may require a separate payment structure apart from the initial payment. Consequently, the pricing structure can be subject to negotiation to determine the most suitable payment approach for healthcare organizations.

Price milestone-based payment schedule

While the implementation of a milestone-based payment schedule is considered the optimal approach for healthcare organizations to ensure compliance with contractual obligations by Cloud-based Electronic Health Record (EHR) system vendors, it is plausible that vendors may not endorse this payment structure and instead propose an alternative arrangement. Consequently, healthcare organizations may engage in negotiations to explore alternative payment models if the Cloud-based EHR system is determined to be the most suitable option.

Implementation schedule

The implementation of a novel cloud-based Electronic Health Record (EHR) system presents considerable challenges. Consequently, it is advisable to engage in negotiations regarding the implementation schedule. This approach allows both the healthcare organization and the cloud-based EHR system vendor to conduct the implementation process in a manner that ensures enhanced security and efficiency.

Configuration and customization

The presence of a customizable cloud-based Electronic Health Record (EHR) system can provide considerable advantages to healthcare organizations, given the diverse range of healthcare services offered by each organization. The availability of a customizable and configurable cloud-based EHR system empowers healthcare organizations to select and implement the most suitable configuration that aligns with their specific needs and requirements.

contract duration and trial period

When transitioning to a new Electronic Health Record (EHR) system, healthcare organizations are advised to engage in contract negotiations to establish a duration that enables them to evaluate the software within a defined timeframe, ensuring its efficacy and associated benefits before committing to an extended contract duration.

Non-negotiable Items

Data security and privacy

Ensuring the security and privacy of Patient Health Information (PHI) is very important and should be upheld without any concessions. Moreover, healthcare organizations are obligated by both legal mandates and ethical guidelines to safeguard all patient data by employing a reputable vendor offering a cloud-based Electronic Health Record (EHR) system.

Certification and compliance with laws and regulations

Healthcare organizations have a legal obligation to comply with laws and regulations pertaining to patient security, privacy, and safety in order to avoid liability and potential financial penalties. Consequently, it is imperative for cloud-based Electronic Health Record (EHR) systems to obtain certification and demonstrate adherence to applicable laws and regulations.


Cloud-based Electronic Health Record (EHR) systems are required to possess robust interoperability capabilities, enabling secure communication of patient information across various departments within the healthcare organization and facilitating seamless data exchange with external healthcare entities, all while maintaining strict adherence to privacy and safety protocols.

Scalability, uptime, and recovery mechanisms

A cloud-based Electronic Health Record (EHR) system must possess scalability to effectively accommodate future expansion and ensure its enduring suitability. Furthermore, continuous accessibility of the cloud-based EHR system is imperative, given the urgency involved in providing timely patient care. Additionally, it is crucial to establish and promptly implement recovery mechanisms in the event of system downtime, minimizing any delays in system restoration.


While the negotiability of training hours and methods may vary, it is imperative that the vendor of the Cloud-based Electronic Health Record (EHR) system provide the appropriate training materials to ensure proficient and adept utilization of the system by all personnel within the healthcare organization.





Amatayakul, M. (2017). Health IT Vendor Selection and Contract Negotiation. In Health it and ehrs: Principles and practice (pp. 206–209). essay, American Health Information Management Association.

Health Information Technology Research Center (HITRC) , Iowa Foundation for Medical Care (IFMC) , Stratis Health , & Arkansas Foundation for Medical Care (AFMC). (2012, March 31). Contracting Guidelines and Checklist for Electronic Health Record (EHR) Vendor Selection . https://www.healthit.gov › sites › default › files › resources