Memorandum of Understanding ( MoU )

A memorandum of understanding (MoU) is a type of agreement between two (bilateral) or more (multilateral) parties. It expresses a convergence of will between the parties, indicating an intended common line of action.

SECTORS ENLISTED FOR MoUs

•  IT, Computer, Electronics & Telecommunication Sector
• Automobile Sector
• Telecommunication Sector
• Textiles & Apparels Sector
• Sustainable Energy Sector
• Tourism Sector
• Music & Entertainment Sector
• Environmental Sector
• Agriculture Industry (Agribusiness and Food Processing)
• Construction Sector
• Education Sector
• Health care & Pharmaceuticals Sector
• Hospitality Sector
• News Media Sector

THE PROCESS OF NEGOTIATING MOU’S
The following is a list of general guidelines to keep in mind during the process of MOU negotiation and development.

1. Identify the key people.
2. Keep the goals and objectives broad.
3. Define your role as a case management agency.
4. Define what the provider can offer.
5. Set realistic expectations.
6. Be specific regarding the understandings and functions.
7. Set review dates.
8. Do not make the MOU more complicated than necessary.
9. Define the terms, units of service, service definitions.
10. Use a marketing approach. Make the provider feel good about entering into the relationship.
11. Clearly specify procedures for amending the MOU.
12. Handle the arrangements and establish the relationship correctly the first time, so that the need to renegotiate is minimized.
13. Be aware and beware of underlying agency antagonisms or feuds which may impact on the implementation of the MOU. If possible, help to resolve these problems.

STAGES IN THE PROCESS

Planning Stage
The planning stage is essential as a basis for subsequent MOU activity and will, if carefully executed, provide a set of decisions and determinations which will facilitate smooth negotiation and implementation of the relationship with the provider. It is also essential as the basis for developing a contract.

Step One.
Begin with internal brainstorming. Administrators, case managers, or others involved in your agency’s efforts should identify:

What you want or need another party to provide?
What you are willing to negotiate?
What you are willing to give up?
What you have to offer?

Step Two.
Identify the potential providers in the community. In this process, identify provider needs and explore ways in which you can, to some extent, address their needs. Be realistic about what you can expect providers to deliver and what you can deliver. Explore ways to establish appropriate relationships in order to maximize the probability of achieving what you want.

Step Three. Define your agency’s program objectives for a particular MOU and evaluate whether you can accomplish the objectives without the MOU. The definition of program objectives is a crucial process in the development of an MOU.

Clearly defined program objectives can be translated into the terms and conditions of the MOU. In developing the objectives you should:

Define the client population to be served?
Define the service to be provided, or the understanding you desire?
Assess any costs, both direct and indirect, to your agency and the agency with which you are negotiating an MOU?
Define the minimally acceptable standards of performance.

Program objectives stated in terms of measurable outcomes will facilitate monitoring, evaluation, and MOU negotiation later on after the MOU has been implemented.

Program objectives can be used as a point of reference against which to weigh the advantages and disadvantages of developing an MOU. Their consideration will assist you in determining whether the creation of an MOU will unnecessarily formalize a relationship, create unnecessary bureaucracy or be counterproductive. An MOU should not be attempted if it will disrupt a good relationship.

Finally, reference to program objectives will help you set up the criteria for agencies and individuals with which to negotiate an MOU.

Step Four.
Identify the level of staff to be involved in the negotiation process. Involve those persons in the process as early as possible. Their value in negotiation will be enhanced if they are thoroughly familiar with what you want accomplished.

Step Five.
Identify agencies which have money for services. Consider some of the ways you can tap into their money and services. For example, you could act as a referral source to the agency or perform preauthorizations for service for them.

Step Six.
Identify agencies which authorize or pay for services. Consider ways to negotiate some transfer of authority to the case management agency.

Step Seven.
Identify individuals who are influential among service providers and enlist their support and assistance.

Negotiation Stage
The negotiation stage begins through contact with the agency, preferably in-person. It is a good idea to include the staff member who will be responsible for implementing the MOU in the initial visit. Have a clear agenda for the meeting. Describe your agency, what you hope to demonstrate through case management, why the participation of the provider agency is Important, and how clients will be better served by the joint effort.

Sell the concept of case management as one that eliminates duplication and enhances delivery of services to clients and their families. After the sales pitch, service providers will probably be able to anticipate what you want from them.

You have spent time during the planning stage identifying what you want and what you are prepared to negotiate and now is the time to lay out your expectations. Be realistic about what you expect and be prepared for trade-offs. Develop a timetable with the provider, setting clear deadlines. It is helpful if each party knows what time constraints and limitations exist in the process.

Important points to consider are listed below.

Identify the internal review process for both your agency and the provider. If the approval of an Advisory Board or Board of Directors is required, learn when these groups meet and plan with that date in mind. Check on whether you or the provider require a legal review and build that into the timeline.
Identify any insurance needs, relevant personnel policies, and requirements for physical examinations, T.B. or other tests. Decide who will pay if any tests are required.
Identify strategies for enhancing the professional status of both the provider and the case management agency in the community. One strategy is to jointly serve on each other’s Boards.
Identify whether staff in-service training is required in order to implement the MOU. Agree on how, when, and who will provide that training.
If the reaction is negative, you might try a little community pressure. Find an influential friend in another agency, or locate a helpful Board member or use your state agency contacts. A little persuasion or arm-twisting is all part of a tough negotiation process.
Any research components in your program should be discussed in the process of negotiating MOU’s with provider agencies.
Confidentiality assurance should be discussed with the provider during the negotiation stage. It should be understood that only authorized persons may have access to client information and records, that the records must be adequately secured at all times, that release of information is allowable only with the client’s permission. These are good practice procedures which protect the rights of clients.
Stage Three. Completing the MOU. This final step begins with the preparation of a draft of the MOU instrument which is based on your meeting and negotiations with the provider agency. Generally, since you are initiating the process, you will assume responsibility for preparing the draft. Send the draft to the other party, along with a cover letter in which you identify controversial areas. Try to negotiate those points where there is some flexibility and identify the immutable points. This phase of the negotiation could be handled by phone or in person, however personal contact may carry more impact in terms of developing the relationship. Involving the persons with the authority to negotiate for the agency at this draft stage can minimize the time to complete the MOU.

If programmatic objectives have been specified in the planning process, developing a system for monitoring and/or evaluation can be fairly easy. You could identify data needs and develop the appropriate forms and filing and tracking systems to be used jointly by your agency and the agency with which you are developing the MOU.

Special Concerns.

Timing
The finalization process can take as little as a few days, or as long as a few months. Factors which tend to increase the amount of time to finalize the MOU are:

the people involved, the individual personalities and the number of individuals can impact on the length of time needed to finalize the MOU;
the number of drafts prepared and reviewed;
legal review;
board review;
staff review;
revisions;
negotiations;
holidays;
anything subject to action by a third party;
involvement by more than two agencies;
turf issues and interagency feuds.
Language. Most problems can be eliminated with clear and simple language.

Relationships. You are negotiating a relationship. Since relationships are dynamic, their nature can change over time.

Negative Publicity. Negative publicity can come from word-of-mouth or the press. Be aware of all publicity the joint effort receives, both negative and positive. Address the negative publicity quickly, thoroughly, and honestly.

REF : https://aspe.hhs.gov/basic-report/guide-memorandum-understanding-negotiation-and-development