Corporate Lawyers Providing Expert Advice For Healthcare Professionals In Montreal
Medical professionals are masters in their areas of expertise. Unfortunately, a substantial portion of the operational workload for their professional business involves legal paperwork. Creating, reviewing, and managing detailed contracts is a vital part of building a thriving, well-organized practice. Without effective agreements, your business may be vulnerable to financial losses, legal challenges, fines, or reprimands from regulatory agencies.
Contracts generally fall outside the scope of a medical professional’s skills. It is therefore essential, to enlist the services of a trusted attorney in order to protect and grow your business interests. MÉDICALOI can offer clear and honest guidance for all of your contractual needs. Contact our Montreal office today to discover how we can provide high-quality legal services to optimize your contractual needs.
What Are Some of the Most Frequently Encountered Types of Medical Business Contracts?
At its simplest, a contract is an agreement between two parties that outlines their obligations to one another. All healthcare-related enterprises involve a vast array of contracts that govern the business’s day-to-day operations. Utilizing the correct contracts, ensuring they meet regulatory standards and operational requirements, and keeping them adequately systematized are all key components of a successful medical business. Contracts or agreements can be drafted for nearly any situation, but the following are a few of the most routinely employed medical business contracts.
Employment Contract
Physicians, nurses, or other professional staff members working for a facility typically enter into an employment contract that defines their working relationship with the facility. The expectations for both parties must be carefully detailed and include information such as performance requirements, hours, compensation, benefits, and any restrictive covenants. Keeping contract terms confidential is yet another challenge that medical businesses may encounter. Incorrect handling of employment information can lead to substantial legal consequences and jeopardize your ability to hire and retain staff.
Independent Contractor Agreements
Some Canadian medical professionals are not directly employed by a facility. Instead, they provide services as an independent contractor. The professional must have an agreement with each entity they deal with to ensure fair compensation, proper handling of liability issues, and other aspects of their working arrangement.
Technology Licensing
Today’s healthcare system is highly dependent upon advanced technology services for nearly all phases of the care process, from scheduling to billing. Each item of healthcare technology used by professionals is governed by a licensing agreement that defines how and where it can be used, all fees involved, terms of termination, and more. It is critical to thoroughly read and understand these agreements before consenting to ensure the technology will meet your needs now and as your practice expands.
Managed Services Arrangement
Medical businesses choose to outsource certain services to third parties to streamline their operations. Common types of managed services include IT assistance, collections, billing, coding, and janitorial services. Contracts with service providers must be custom-made to correspond to your specific situation and needs.
Equipment Leases
Purchasing new medical equipment can be prohibitively expensive. Leasing necessary equipment can be a more cost-effective alternative. However, it is incumbent upon the lessee to carefully read the contract provided by the lessor to understand how the lease will be conducted, the overall cost, how repairs may be requested, and when and how the lease can be terminated.
What Issues May Be Addressed in Medical Contracts?
Every medical contract you create should be carefully tailored to meet your requirements. A generic or incomplete contract can leave critical issues and eventualities unhandled. These oversights can lead to expensive legal headaches and disruptive government audits. Employing a detailed contract review process with the assistance of your legal team can help you identify and correct errors early in the process. While each of the following issues may not apply to every medical contract, they can prove vital under certain circumstances.
Indemnification and Liability
Liability is a prominent issue within the healthcare field. In addition to risk-reduction strategies and malpractice insurance, it is essential to consider the protective role of indemnification and liability clauses in your contracts. The extent of the protection provided by an indemnification clause in an agreement is often contingent upon the terms of the document as a whole, so requesting a thorough review of your contract by your legal counsel is always the best practice.
Restrictive Covenants
Also known as “non-compete clauses,” restrictive covenants may be used for several purposes, such as protecting your medical business from customer loss or shielding your staff from recruitment by former employees. However, these clauses are strictly regulated and often litigated. If a restrictive covenant is necessary to safeguard your business, contact a knowledgeable law firm to assist with the composition of your contract to ensure legality.
Dispute Resolution
Outlining both parties’ rights for resolving any disagreements that may arise is a crucial aspect of any contract. Your lawyer should examine the document to ensure that the terms for dispute resolution are fair and do not curtail your legal rights. For example, some employment contracts may include language that precludes a physician from seeking assistance from their legal counsel or the Canadian Medical Protective Association (CMPA). This easily overlooked clause could place a health practitioner at an extreme disadvantage in a contract dispute.
Why Hire a Medical Business Contracts Lawyer?
Medical contracts can cover a vast array of purposes and situations. The legislation governing contract law is extensive and difficult for healthcare professionals to navigate independently. Using generic templates for basic contracts can present a tempting shortcut. However, these one-size-fits-all documents often don’t provide the detailed information you need to make your agreement useful, compliant, or legally binding.
Our skilled team at MÉDICALOI can draft, review, and modify comprehensive contracts to help you expand your practice while safeguarding you from future legal hurdles. Reach out to our Montreal law firm today to schedule an in-depth evaluation and learn how we can leverage our knowledge to assist you: (438) 805-5515.