Negotiation Advice
Australian Writer
Prepare for your upcoming discussion with Dr Jones. In your preparation you should:
Consider who the relevant parties are, and what their interests are; (5-600words);
Identify what communication issues you will need to consider; (200 words);
Outline one option package; (100-150 words)
Identify what your BATNA is and why. (100 words)
General Background Facts
You the Director of the Medical Centre in the provincial town of Coville. You are currently trying to find a resolution to a matter between Dr Chris Jones and the Centre.
The issue has arisen out of Jones’ relationship split with his/her spouse, another doctor on the staff at the Centre – i.e. they are divorcing. Three months ago, the Jones’ separated and life at the Centre has become very uncomfortable for everyone and other medical staff have told you that Dr Chris Jones needs to leave.
Both Jones are bound by a five-year contract with the Centre. Their contracts contain provisions that should the contract be terminated, at no fault of the Centre, the Doctor (i.e. the relevant Dr Jones) cannot set up practice within 30 Kilometres of Coville for a period of two years.
(There is no penalty or prohibition if they practice outside of the 30 Kilometre limit). The clause is designed to protect the Centre from having a doctor join the staff, build up a clientele, and then leave before the end of the five years and taking all his or her patients to the detriment of the Centre.
Accordingly, the agreement further states that should the Doctor practise medicine in Coville (within the two years) he or she will pay compensation (liquidated damages agreed between the parties, but if no agreement to be assessed by Expert Determination) to cover losses incurred by the Centre.
You have met once with Dr Jones to discuss the issues and Dr Jones said that s/he wants to leave the Centre but indicated that s/he wants to negotiate terms the Centre will find acceptable for Jones to practise in Coville. If they are favourable, Jones will stay in Coville.
If not, Jones has said that s/he may be forced to consider other options – like legal action for restraint of trade. Jones is very keen to stay in Coville, as this is where his/her children go to school and are settled. Moreover, as Jones is a Paediatrician s/he has connections with a lot of local patients. The meeting did not resolve any issues.
Below is additional and confirmatory information that you may need in providing your advice.
Further Information
Jones has two and one-half years remaining on the contract with the Centre. Jones’ practice brings in $250,000 each year to the Centre. $170,000 is paid to Jones as salary and $80,000 goes to the Centre to cover overheads (The Centre does not declare profits.
