H E A L T H L A W Safety First When Consummating Relationships with Vendors ■ JOHN SHUFELDT, MD, JD, MBA, FACEP O ne of my favorite Seinfeld exchanges is this prickly dia- logue between George and his fiancée, Susan, regarding his disdain for (and challenge with) condoms: GEORGE: Oh, no, no...condoms are for single men. The day that we got engaged, I said goodbye to the condom forever. SUSAN: Just once...for the make-up sex. GEORGE: Make-up sex? You have to have that right af- ter the fight, we’re way past that. SUSAN: Come on, just once? GEORGE: No, no...I hate the condom. SUSAN: Why? GEORGE: I can never get the package open in time. SUSAN: Well, you just tear it open. GEORGE: It’s not that easy. It’s like “Beat The Clock”, there’s a lot of pressure there. SUSAN: Come on, George, just tear it open. GEORGE: I’m trying, dammit. SUSAN: Tear it. GEORGE: I tried to tear it from the side, you can’t get a good grip here. You gotta do it like a bag of chips. SUSAN: Here give it to me. GEORGE: Would you wait a second? Just wait? SUSAN: Give it to me. Come on. Come on! GEORGE: (Tosses the condom aside): It’s too late. Unfortunately, in business, it takes much more than a con- dom to protect you from the dreaded “FTD.” That’s right, you read it correctly, “FTD”—a financially transmitted disease. In addition, sadly, if parts of your supply chain are in distress, particularly in an economic downturn, your business could ex- John Shufeldt is the founder of the Shufeldt Law Firm, as well as the chief executive officer of NextCare, Inc., and sits on the Editorial Board of JUCM. He may be contacted at JJS@shufeldtlaw.com. perience significant “shrinkage.” How, then, do you apply a “business condom” and what signs do you look for to know if your business partners are at risk for having an FTD? Signs, Symptoms, and Protection A business can insulate itself from the travails of its supply chain vendors in a number of different ways. Before signing an insurance plan contract, read the fine print. For example, many health plan contracts force you to continue seeing their patients for a period of time, even if the insurance company stops paying on a timely basis. Signs of an FTD: A high rate of providers discontinuing their contracts with the insurer. Ask for reasons clinicians have dropped the plan. Most states have a Department of Insurance where a consumer or vendor can inquire about the health plan’s financial strength. Wearing the condom: Insist on timely payment for clean claims and understand what the plan defines as a clean claim. In addition, understand the plan’s grievance process and ask to speak with providers who have been through it. Whatever you do, don’t allow the plan’s poor management to become your headache, or, worse, your downfall. Patient vol- ume is great but only if you are getting recompensed in a timely manner for the care you provide. Supply vendors are a critical cog in a well-managed urgent care center. Providers and patients expect the supplies you use in the clinic to be top quality, easily accessible and, at worst, “just in time.” Signs of an FTD: Poor stability, lack of market presence, and re- sponsiveness. The time to evaluate this is before you become dependant on supply vendors. Run a process whereby you sup- ply a number of potential vendors with your supply list and ask them to bid on your business. Inquire about discounts available once you hit certain volume thresholds, as well as the possibil- ity of joining any group purchasing plans. Continued on page 44. 38 JUCM T h e J o u r n a l o f U r g e n t C a r e M e d i c i n e | A p r i l 2 0 0 9 w w w. j u c m . c o m