Contracts
Contract Review and Negotiations
The objective in this area depends on the practice’s leverage position in the market. If you have a new practice in an area with many physicians, leverage is minimal and attracting contracts is a means to creating patient volume. Pricing although important is secondary to receiving the contract. The strategy is often to insure that 60-90 day contract outs are available.
Once a practice is established, the practice becomes more selective. Contracts are reviewed to protect the practice from such things as solicitation clauses, gag clauses, reassignment of patients following termination, billing and payment cycles as well as compensation.
