Friday, June 21, 2013

Exploring Healthcare Contracts

By Wyman Bowers, SCMA Associate General Counsel

Contracts.  For most people, they are a necessary part of life. Whether you’re buying a home, a car, or even have a cell phone plan, you have a contract which lays out the terms both parties agree to prior to the exchange of compensation, goods or services.  They may not be enjoyable, but they are necessary.

Though they can be intimidating  at times, most contracts rely on logic and common sense.  There are certainly what attorney’s call “terms of art” in most contracts, words like negligence, indemnity and breach, but the majority of most contracts are readable.

The difficulty comes in signing a contract without reading it.  It takes time and effort, but too often I find that contracts are signed, particularly within the field of healthcare, but are not read.  Can an insurance company require prior authorizations for certain procedures?  Possibly.  It’s probably stated in the contract.  Can I get out of my lease for the imaging equipment I purchased 18 months ago? Possibly.  The terms for when you can terminate are probably spelled out in the contract.

The point is, an ounce of prevention equals a pound of cure.  Take some time before you sign the contract to read what is in it and think through the advantages and disadvantages it offers.  Most terms can be negotiated.

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