What is a Healthcare Contract Negotiation?
A healthcare contract is an important document between parties to provide high-quality medical services. It outlines essential terms, such as those regarding payment and compliance. There are various types of healthcare contracts, such as physician employment contracts, equipment contracts, and recruitment agreements.
Before signing the contract, you want to check if there’s anything you want to negotiate in its terms to protect your interests.
Read the rest of this article to learn about healthcare contracts and how you can successfully negotiate their terms.
What are Common Key Terms in a Healthcare Contract?
A healthcare contract usually includes the following key terms:
- Work scope. This section outlines the specific admin or medical tasks that will be conducted during the contract term.
- Payment terms. Compensation for services provided will be clearly stated. This should include the salary as well as other forms of compensation, such as bonuses.
- Contract term and termination. How long the contract is meant to last needs to be outlined as well as how it can be terminated by either party.
- Compliance. Parties need to meet specific regulations, such as HIPAA, to ensure compliance.
- Restrictive covenants. This includes non-compete and non-soliciation clauses that determine how and where a healthcare provider can work after the contract ends.
What are the Most Negotiable Terms in a Healthcare Contract?
There are various parts of a healthcare contract that you can negotiate before you sign and agree to it. Here’s a rundown of some of the most common and how to navigate negotiations.
Payment Terms
Compensation (including non-salary payment you’ll receive for your work) is one of the most commonly negotiated parts of a contract. Ensure that you’re being compensated according to what people in similar roles are earning. It’s worth remembering that salaries can vary due to location, speciality, and even the type of healthcare facility in which you’ll be working.
Work Schedules
It’s important to closely read the work schedules and when you’ll be required to be on call. You want the on-call hours to fit in with your lifestyle, so it’s worth asking about this if it’s not clearly specified in the contract.
Restrictive Covenants
Non-compete and non-solicitation clauses will affect you after contract termination, providing rules for where and how you’ll be able to work. To prevent your future employment from being severely affected by the contract, you should have clarity on how long these restrictions will be in place.
Check that you will be allowed to make use of a second stream of income, as this might be prohibited under the contract.
Malpractice Insurance
Find out the specific details of your malpractice insurance in the healthcare contract. You need to know exactly what will be covered by it and who will be responsible for paying it, including tail coverage once you leave the healthcare facility.
Contract Termination
While you might not necessarily think about early termination when you’re about to sign a healthcare contract, it’s something to seriously consider as it will protect you in the future. Check how the healthcare contract can be terminated by you or the other party if required, such as how much notice needs to be given.
If your contract will automatically renew, you might want to negotiate for the chance to renegotiate the contract, as your future requirements might change.
What are Tips for Negotiating a Healthcare Contract?
When negotiating your healthcare contract, there are some specific tips to bear in mind.
Review Your Contract
Before negotiating your healthcare contract, you should thoroughly review it. This will ensure you understand all the terms and can identify any areas you’d like to discuss with the other party.
Some contracts can be complex, so you should get a professional review from a qualified lawyer. They are experienced with legal expertise to find any red flags, vague language that can be misunderstood, and other issues. They can also explain all the legal language to you so that you have clarity about what you wish to negotiate.
On ContractsCounsel, one of the largest online legal marketplaces that connects clients with vetted lawyers, you can request a contract review. Simply post your request on the ContractsCounsel marketplace. Lawyers will send you bids for the project, and you can choose a lawyer to work with after reviewing their credentials, client ratings, and other information.
Do Your Research
When negotiating terms such as pricing and payment, you should do your research so that you know what you’re hoping to achieve. This can include researching salaries for similar job roles in your location. If you don’t have successful discussions related to changing your salary, consider alternatives, such as negotiating other benefits or bonuses.
Get Everything in Writing
Never leave a negotiation discussion with an agreement that you haven’t got in writing. Verbal agreements should never be relied upon, as they can result in misunderstandings or disputes in future.
Be Confident
While you might feel out of your depth when negotiating a healthcare contract, it’s your right to ask for what you want. Speak clearly and confidently, and back your statements with facts. Even if the other party doesn’t meet your needs, it’s always better to ask. Remember to request reasons if you receive a “no” answer, as it will help you gain clarity.
Follow the 70/30 Rule
The 70/30 rule in negotiation means that you listen for 70 percent of the time and talk for 30 percent. This strategy enables you to pay attention to what the other party has to say so you can identify their needs, which will help you to find mutually-beneficial outcomes.
Seek Legal Guidance
If you’re unsure of how to approach negotiating a healthcare contract, you should work with a lawyer. They’ll guide you on the best approach, while taking your professional goals into account.
Other ways in which a lawyer can help you include:
- Avoiding wasting time on items that might not have much leeway during negotiations.
- Helping you to spot any red flags in your contract so that it prioritizes your interests.
- Checking that all agreed-on terms are included and put down in writing to protect you.
- Ensuring that you comply with all relevant healthcare laws and regulations.
If you need a lawyer, you can hire one on ContractsCounsel. All lawyers on the marketplace are vetted and ready to help you with negotiating your healthcare contract, ensuring you have a solid, legally-sound approach to get you the best deal.
