A healthcare contract is a type of contract that is formed between two parties, and in a healthcare setting, usually between a physician and provider. Contracts are also formed between healthcare providers, employees and vendors. These contracts cover a number of different things, from benefits to restrictive covenants, and terms of termination.
Whether you are a physician or are just interested in healthcare contracts, you’ve come to the right place. This article will provide a closer look at nine of the most basic healthcare contracts, although it must be made clear, there are far more than nine types of healthcare contract:
Employment Contract
An employment contract is perhaps the most common type of healthcare contract. Each employee of a hospital or healthcare company is bound by one of these contracts, which will usually cover things like one’s schedule, benefits, and compensation. Physicians being hired by hospitals or healthcare institutes are advised to thoroughly examine their contracts, in order to look for any clauses that might impact their jobs or lives. With this said, most of what’s contained within your contract will likely have already been expressed to you by the company or hospital’s recruitment staff.
Payment Contract
A payment contract is also a very important part of the healthcare industry, particularly in the United States where healthcare is privatized and payments are either made from one’s own bank account, or through an insurance company. There are two main types of payment contracts: fee for service and predetermined per-person payments. A provider contracting company typically arranges and deals with these sorts of contracts, because they can be complex. These contracts are between either a hospital or private physician, and a payor, who is usually an insurance company, but can be an individual.
Recruitment Contract
A recruitment contract is similar in essence to an employment contract, except it is the terms of a physician’s recruitment and not their employer and will include things such as mandatory vaccination against the COVID-19 virus. These contracts can be complex, so it is worth having a lawyer look over your contract before you sign it. Recruitment contracts typically come before one’s employment contract. You may be required to sign a recruitment contract before you are even being considered for a job, such as in the early stages of the hiring process before you have been interviewed, but after you have been long-listed.
Management Services
Another common type of contract is a management services arrangement, which is introduced when management is outsourced to a third-party management company. An entire hospital’s staff can be placed under the direction of a management company if one of these contracts is signed. The management company will take responsibility for the maintenance of offices and other work-related spaces. As part of their maintenance, they are required to keep everything in good condition, including furniture, facilities, and medical equipment. As with the other types of contracts that have been listed here, it is advisable to have a lawyer check over this type of contract before signing it.
Medical Directorship
A medical directorship arrangement is a contract that a physician can enter into, usually with a large healthcare institution or hospital. When a physician signs this contract, they take on more responsibility in their job and are required to have more involvement in the institution’s administrative policy and work. With all of that said, a medical director’s tasks vary depending on the hospital or institution that they are working for. Sometimes they take on more responsibility, while other times they do not. Often, a medical director will have a number of assistants working underneath them, which may be explained in the contract.
Transfer Agreements
A transfer agreement is an agreement between two different healthcare providers. These contracts are written up in order to facilitate the transfer of a patient from one provider to the other. As with all legal documents and contracts, this type of contract requires a representative from both parties to be present, as well as witnesses, and a lawyer. These contracts include details about a patient’s health, insurance information, and duties, as well as medical judgment and billing. Transfer agreements are a very common type of healthcare contract.
Technology Licenses
The medical industry is very advanced in terms of technology. Some hospitals have special technology that is not found anywhere else in the world. For this reason, technology licensing contracts are very common. This is a contract between a hospital and a technology provider. These contracts outline how long the hospital will use the technology, and how much they will pay and may include information specifying exclusivity of technology, which limits the provider from offering their technology to other hospitals. With that said, it is very rare for an ordinary hospital to have exclusive rights over a piece of technology.
Joint Ventures
Joint ventures are contacts between two or more companies or corporations, and sometimes individuals. In most cases, they are partnerships that last for a fixed period of time. Joint venture contracts detail information about profits, assets, and risks. Sometimes these contracts are between technology providers and healthcare companies when the latter has an idea for new technology. It is often the case that joint venture contracts are drawn up when a hospital wants to expand or when a healthcare company wants to dip its toes in new markets.
Real Estate
Real estate contracts are very common. For a hospital or healthcare provider to be open, they must have a physical location for patients to come. Real estate contacts are the contracts that are signed when a healthcare company either takes ownership or leases a building for their patients to come into. Whenever a hospital buys new land or real estate, these contracts are drawn up. These contracts, as well as the property’s deed, are then used to show proof of ownership in the future. The hospital can use its proof of ownership to sell or lease the property to other people.
Contract law is very complex. If you are going to be signing a contract or are just interested in them for academic reasons, this article should have given you basic information regarding the most common types of healthcare contracts. As mentioned in the introduction, there are many other types.
