What is Medical Practice Agreement Drafting?
A medical practice agreement can take the form of various contracts in the healthcare setting, such as a physician agreement or partnership agreement. It establishes the key terms for parties to navigate their working relationship, such as their rights, duties, compensation, and more.
Read the rest of this article to learn more about medical practice agreements, how to draft them, and why you should hire a qualified lawyer for assistance with the medical practice agreement drafting process.
What are Key Terms in a Medical Practice Agreement?
A medical practice agreement can vary depending on its specific purpose, but it usually contains the following essential information.
- Parties. This clarifies which parties are involved in the agreement, including their names and legal details of the practice.
- Compensation. This outlines compensation, such as what a physician signing the agreement will receive in their job role.
- Covenants. These include non-compete and non-solicitation clauses that prevent a physician or partner in the agreement from working in specific locations or for competitors should they leave the healthcare practice.
- Duties. This can include clarity about roles, obligations, and patient care duties so parties know what’s expected of them.
- Ownership. This is a common clause found in partnership agreements, as it clarifies voting rights, ownership percentages, and who has authority to make decisions.
- Compliance. All medical practice agreements must be legally compliant with licensing requirements and healthcare regulations.
- Dispute. Should disputes arise between parties, the medical practice agreement should specify how it can be resolved, such as via mediation or arbitration.
- Confidentiality. Medical practice agreements usually provide provisions for the protection of patient records and sensitive business information.
- Term and termination. This specifies the grounds for contract termination, such as what notification periods are required and post-termination duties that need to be fulfilled.
What are Mistakes to Avoid When Drafting a Medical Practice Agreement?
Although medical practice agreements can vary in the information they provide to parties, there are some important errors to avoid to protect your interests and minimize your risk of disputes.
Unclear Compensation Terms
One of the biggest pitfalls to avoid when drafting a medical practice agreement is vague payment terms. You should be as detailed as possible when outlining payment terms, such as by including how salaries are calculated and what eligibility criteria is in place for bonuses.
Broad Restrictive Covenants
Covenants might be included in a medical practice agreement, such as non-compete or non-solicitation clauses. These need to be aligned with all relevant laws and reasonable for parties involved so that they don’t harm the career opportunities of the partner or physician leaving the healthcare facility.
Vague Roles and Duties
You should always clearly specify the physician, or other party’s, duties so that there’s no confusion over what is required of them. This should include clinical/patient obligations, administration duties, and more.
General Work Schedules
Another potentially problematic mistake when drafting medical practice agreements is not clarifying work schedules. For example, what are the specific office hours and on-call obligations a physician must fulfill? Similarly, what are the requirements for vacations or paid time off?
Missing Malpractice Insurance Details
A medical practice agreement should specify how much malpractice insurance is provided and what this will cover to protect both parties. It should also cover tail coverage, which comes into play when the contract comes to an end.
Legal Jargon
Your medical practice agreement should always be written in clear, simple language. Avoid confusing legal jargon that can cause misinterpretation and increase your risk of disputes in future.
How Can a Lawyer Help You With Medical Practice Agreement Drafting?
You should hire a lawyer to help you with the drafting of a medical practice agreement. This will give you peace of mind that all terms in the contract are clear and legally valid to protect all parties involved. Here are some things that a lawyer will do to assist you during the drafting process.
- A lawyer will choose the best legal structure for your practice, such as a partnership, depending on your requirements. This will be aligned with all local laws and regulations.
- They’ll define ownership and profit-loss allocations to prevent disputes between physicians and stakeholders.
- They’ll draft clear clauses that explain decision-making authority for clarity about how the medical practice is managed and run.
- They’ll provide compensation clarity, such as in terms of base salary and product-based bonuses.
- They’ll ensure healthcare regulatory compliance to avoid penalties or legal disputes.
- They’ll keep the medical practice agreement fair and balanced, such as with reasonable restrictive covenants.
- They’ll draft the agreement while assessing future scenarios, such as what happens if a physician or partner leaves the practice or dies. This will reduce the risk of uncertainty.
- They’ll allocate liability fairly, such as with indemnification clauses.
- They’ll tailor the medical practice agreement according to the practice's goals and requirements.
- They’ll negotiate terms in the agreement on your behalf for more favorable, balanced terms.
Where to Find a Lawyer for Medical Practice Agreement Drafting
You might need to find a reputable lawyer but not know where to find one. By using an online legal platform like ContractsCounsel, you can quickly connect to a professional lawyer who will help you to draft a medical practice agreement.
ContractsCounsel is one of the largest online legal marketplaces that gives you access to a network of vetted lawyers. They have the expertise to draft legally-solid and clear contracts.
Here are the easy steps to follow when requesting that a lawyer on the platform drafts your medical practice agreement.
1. Go to the ContractsCounsel marketplace, where you can post your project for free. Include some details of what you require so that you can match with the best lawyer. This can include what specific medical practice agreement you require and why.
2. Wait for lawyer bids. You’ll receive multiple bids from lawyers directly on the platform who are ready to assist you.
3. Review the lawyers’ profiles. After receiving lawyer bids, you should review the lawyers' profiles. There’s lots of info on the platform to help you choose the best lawyer, such as their location, client ratings, years of experience, and field of expertise.
4. Connect with a lawyer you think is best suited to your requirements and hire them to draft your medical practice agreement.
