1 ADVANCE for Executive Insight

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Renaissance Esmeralda | Indian Wells, California October 16-19, 2012 Adam Savage Co-star of Mythbusters Ted Koppel Legendary Journalist College of Healthcare Info XI-1231021 P.46 Eric Topol, MD Rock Star of Science 46 ADVANCE for Executive Insight
equirements you put together earlier in the process. There should be no surprises; these are items you should have been discussing all along with your vendor. If the vendor cannot provide an SLA you are comfortable with, find a new one. cloud contract in. Your ultimate goal is to protect the organization in case there is a problem. But remember, the contract is only a piece of paper and should be one component of your overall continuity strategy. Pay attention to the details and enjoy the sausage. Penalties – This is where it gets a little dicey. Generally, clients never think they are punitive enough and vendors think they are excessive. To be fair, penalties are not there to ensure reimbursement of any costs due to not meeting an SLA. They are a deterrent to encourage the vendor to do the right thing. Breach – You need to determine the situations you could potentially be put in where you would want to end the contract prior to the end of the term. This will include various egregious actions by the vendor but also should include the inability to maintain SLAs. Penalties are not going to cover all your losses. You should include language for breaking the contract if a vendor has a number of SLA failures during a period of time, such as three events in a single month. Termination – Just as you carefully plan how you are going to migrate your computing services to the cloud, you need to pay just as much attention to how you would get them back in case you part ways with the vendor. Chances are if you are parting ways, it is not amicable. The contract should be specific on what the vendor and client responsibilities are and specify timelines for critical activities. Another area you may want to consider is change of ownership or a bankruptcy. If the vendor is acquired or goes bankrupt, what are your rights? I address this by encouraging the vendor to give the client a termination option. This is especially important if you dislike the new ownership. Plan for Protection There are numerous items that make up a good contract, many of which are basic and not included here. While negotiating the contract, you need to keep visualizing the worst possible situations you could be put DREAMS, COLLABORATION AND DETERMINATION BUILT THIS HOSPITAL FROM THE GROUND UP. Seton Medical Center Harker Heights, Harker Heights,Texas It started with 80 local physicians who saw a need for choice and dedicated themselves to that goal. Their passion and determination led them to LHP and the Seton Family of Hospitals, where a joint venture partnership offered the capital and courage necessary to break ground during challenging economic times. The result is the first hospital built in Bell County, Texas, in more than 35 years— with an acclaimed healthcare team put together from the ground up, a state-of-the-art shared-governance facility opened ahead of schedule and a dream fulfilled for physicians who sought to improve healthcare choices and delivery for their patients. If you’d like to hear more about LHP’s joint venture strategy and how it could work for you, contact LHP CEO Dan Moen at (972) 943-1702. To learn more about Seton Medical Center Harker Heights, visit www.SMCHHStory.com. LHP 17343.7 Executive Insite 4.875˝ x 7.5˝ __________Spell Check ________Prod. Artist ________Art Dir. ________Copywriter ________Copy Editor________Creative Dir. LHP 17343.7 HealthLeadersSMCHH ExecutiveInsight.indd 1 7/16/12 1:24 PM ADVANCE for Executive Insight 47
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1 ADVANCE for Executive Insight

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