Provider/vendor partnership – not 50-50 split but each 100% committed.
“Too often, discussions about working together become one-sided relationships. To succeed, partnerships require gains for both parties,” says Nordic’s Jim Costanzo
Talk of partnerships in healthcare, between a variety of players, often comes off as mere marketing speak – a way to get a quick win, a new customer.
It’s often not successful, because the partners aren’t both committed to working together, to making the joint effort beneficial to both parties. In the vernacular of a marriage, it’s like trying to make a marriage successful by having both partners vow to put in 50 percent of themselves.
Marriages succeed when both partners are all in – the same, too, with partnerships in the healthcare space, says Jim Costanzo, CEO of Nordic Consulting Partners.
Giving 100% and going the extra mile make the partnership great!
“To make partnership successful, it has to be a two-way street,” he adds. That goes for a vendor serving a healthcare organization, as well as the provider organization itself. “Usually, when partnerships work best is when you start with strategy – you work through that strategy together to determine…how we work together so that we’re doing things more effectively and more efficiently.”
Nordic Consulting, based out of Madison, Wis., has successfully used a partnership strategy with several healthcare organization clients. The consultancy was rated as Best in KLAS in four categories, including for Overall IT Services, in the industry bellwether report by KLAS Research. Additionally, Nordic Consulting was recognized by KLAS in its 2022 Best in KLAS: Software and Services report for excellence in HIT Implementation Leadership (large), Revenue Cycle Optimization and Technical Services.
A true partnership is a great position to be in, but a lot of providers are sick of vendors coming in and saying, ‘Let’s partner on this.’
Costanzo acknowledges that – despite the firm’s proclivity toward working in tandem with clients – some engagements are short-term, with healthcare organizations seeking to solve specific problems with outside resources. But he believes that there’s much to gain from deeper, long-lasting, mutually beneficial relationships.
“Where we believe we can provide the best services is when we are a true partner,” he says, which stands in contrast to so-called partnership arrangements that are not truly bidirectional and only “a one-way partnership.” But true partnership implies gains for both parties, and “so we try to approach our clients in the same fashion,” Costanzo says. “We want this to be a win-win if we partner with an organization and if we do, and they commit, we’re all in.”
Committing to a partnership means bringing resources to bear upon the relationship, for the duration of it. “We try to bring the best and brightest thinking from around the globe to that client and help them with everything from strategy, system selection, all the way through implementation and then post go-live support and ongoing operations,” he says, adding, “these partnerships are the ones that are fun for us because we get to help clients shape their vision, shape their future.”
Adam Gale, CEO of KLAS Research, echoes the observations made by Costanzo and highlights some of the characteristics of strong partnerships. “A true partnership is a great position to be in, but a lot of providers are sick of vendors coming in and saying, ‘Let’s partner on this.’ They just feel like, again, it’s maybe just a one-sided partnership.”
“You have to demonstrate your commitment to the organization and their patients, and then and only then do you have the right to ask them to be a partner.”
Instead, provider organizations are especially looking for flexibility and generosity, terms with which Nordic was described by its clients, particularly in the pressure unleashed by the pandemic. Clients “need some flexibility on timelines, and who’s going to be there and when, and they need flexibility on the price.”
Price-conscious flexibility for bidirectional partnerships is essential because “this pandemic has put (organizations) in a tough position, whether it be in reductions in elective surgeries or overflowing ICUs with COVID cases. Our goal is to make these companies run their businesses better so they can serve patients better.”
For healthcare partnerships to be successful, trust is key, and that trust must be proven and validated over time, through a growth of relationship. “You need to earn the right to ask (the other) to be a partner,” Costanzo affirms. “You have to do that by demonstrating your value to the organization – you have to demonstrate your commitment to the organization and their patients, and then and only then do you have the right to ask them to be a partner.”
The idea of partnership...focused on the future.
Commitment to a working relationship needs to involve top leadership of organizations, not just the specific points of contact for a specific project. From Nordic’s experience, “executives and leadership of the hospital system need to be as committed to the partnership as we are,” Costanzo explains. “Where these working relationships work best is when you start with strategy – you work through the strategy together to determine what are the things they can do internally.”
The payoff comes from maximizing synergies and benefits for both parties. “How do we work together and partner on those things, so that we’re all doing things more effectively, more efficiently…and that’s when you can make these things work. Oftentimes, day-to-day operations get in the way, and you can’t get responsiveness. That’s typically not a true partnership. That comes when the leadership is committed.”
COVID was terrible, but it moved us along in some respects. When healthcare organizations think about partnerships, they need to not just look at what's happening today. They need to think about where the industry is going.
The depth of a partnership reveals itself when organizations encounter unexpected challenges, Gale says.
“If you have a tactical problem, and you bring in some strategic people that help solve similar strategic pieces that were unexpected, well...that was not part of the gig." In theory, that should cost a lot more, Gale explains. “But I've seen a number of these companies that have a real partnership; that throw in 100 percent, like whatever it is they need to do to solve the problem. And, that is not an ROI discussion – it's a short-term loss in many scenarios but a much longer-term win [for both the partners].”
Effective partnerships will become more important as the healthcare industry builds on to the experience of rapid change that was forced upon by the pandemic – which has facilitated the capacity to change at a speed that the industry will not be able to slow.
You have to earn the right to ask for and be a partner
“The industry continues to evolve really rapidly, and it's great,” Costanzo says. “I mean, I've been in healthcare my entire career, and it's moved very slowly, for many, many decades. And it's starting to pick up the pace, especially around telehealth and some [other technologies].
“You know, COVID was terrible, but it moved us along in some respects. So, when [healthcare organizations] think about partnerships, they need to not just look at what's happening today. They need to think about where the industry is going." Costanzo further suggests that providers need to pick partners that either have the technology they'll need within a year, and be sure partners can help develop what they're going to need in 5 years – an organization that has a vision...and "being picky about the partnerships you enter into is very important." Watch the full video
Best in KLAS leaders share success principles - BEYOND THE RANKINGS
EPIC Systems:
Where will healthcare be in 2 years…20 years? Epic’s Judy Faulkner shares insights.
The Chartis Group:
Purpose, impact, respect, caring – those who work for it have value to contribute back to the world
Nordic:
Provider/vendor partnership – not 50-50 split but each 100% committed.
Galen Healthcare Solutions:
Culture is king when counteracting healthcare’s workforce challenges
Best in KLAS Report
2022 Best in KLAS Awards - Software and Professional Services