How can I use the law to be more strategic in my practice?

To answer that question, I start by going back some in history to share a few examples. One of founding fathers, Ben Franklin, certainly knew the strategic advantages of the law.  Early in his career, he lobbied the Pennsylvania Assembly to print paper money.  Guess who got the contract to print that money? Another example is Joseph Wharton, founder of the American Nickel Corporation, who lobbied Congress to produce two new coins.  If you look in your change jar at home, you can see the positive results of his efforts.  In 1899, Asa Candler, the inventor of Coca-Cola, entered into a two page contract with Joseph Whitehead and Benjamin Thomas and for one dollar sold them the sole and exclusive right to use the name Coca-Cola upon bottles or receptacles containing Coca-Cola syrup and the right to vend such preparation in all the United States except six New England States and the states of Mississippi and Texas. Over 100 years later, the strategic importance of that contract continues.

I like to use a more recent example as well. We all know that Bill Gates,  founder of Microsoft, is a zillionaire and that he is a tech genius. What you may not know is that he is also very legally savvy. Even at age 19, he showed a real knack for entering into contracts and doing deals that gave him a competitive edge in his business. Even when he was caught off guard by a massive anti-trust lawsuit by the federal government, he quickly figured out the importance of having a presence in Washington and managed a successful resolution to the case.

Richard Shell, a Professor at The Wharton School at the University of Pennsylvania stated, “Law is perhaps the most hidden of all competitive strategy tools. Someone, after all, is going to make the rules. The only question is who.” Shell raises an extremely important point. We are all impacted by laws, rules, and regulations.  The question is whether we are playing offense or defense in terms of understanding the rules and using them to our advantage.  Most people fear getting involved in legal matters.  However, as Shell emphasized, “it is just that aversion that makes legal knowledge such a rich source of competitive advantage for those who take the time to understand how legal systems really work.”

Maybe you aren’t lobbying Congress for some new law (although many physicians have been active in tort reform and other issues over the years), so how does this idea really apply to you? My argument is that there are real advantages of becoming legally astute.  The world of healthcare can be a maze of rules and regulations that seems to be ever changing. Whenever I discuss potential changes in healthcare law, one of my legally astute physician friends reminds me, “I don’t care how the rules change.  I just need to know what they are so I can find strategic ways to use them to my advantage.”  Legally astute physicians share this attitude of being creative and engaged about the law.  They don’t fear it or bury their head in the sand.  They don’t just defer all things legal to the lawyers.  Instead, legally astute physicians take a proactive approach to know and understand the legal environment in which they practice.  They expect their lawyers to come up with creative solutions and not just tell them what they can’t do.  It is easy to say “no”; the challenge is to find create alternatives to say “yes.” 

Legally astute physicians understand what their lawyers are talking about. They are able to “speak the language” and understand the legal tools at their disposal. They seek legal counsel and then make their own informed judgment. They understand about the coding in their practice area and how to negotiate with payors. Legally astute physicians know how to mitigate risk in their practice and are proactive about training their team to avoid liability. They don’t wait for problems to occur; instead, they focus on preventive maintenance. I have found that legally astute physicians usually are savvy investors and entrepreneurs as well.  They understand about contracts and deals. Many see opportunities and find ways to bring new services or products to the market. 

Becoming legally astute is a journey, not a destination.  I encourage you to consider starting this year making the investment in becoming more knowledgeable about the law and legal environment.  Your increasing knowledge will allow you to make better decisions, be more proactive in your business dealings, and provide you a strategic advantage in your practice.  

Martin Willoughby is a serial entrepreneur, author of the book, Zoom Entrepreneur, and a business consultant. Direct questions to Martin at martin.willoughby@butlersnow.com

Tags:

Related:

Bookmark:

Digg

Facebook

Technorati

Newsvine

Google