What Healthcare Practice Owners Should Know Before Signing a Contract

Healthcare contracts often arrive with a deadline and a request to “just sign.” Taking time to understand a few key terms can prevent years of friction.

Know what you are actually promising

Read the scope of services, performance obligations, and service levels. Ask whether the obligations match how your practice operates, including staffing, hours, call coverage, and documentation.

Term, renewal, and termination

Look for automatic renewal, notice windows, termination for convenience, and what happens to patients, records, and data when the agreement ends.

Restrictive covenants

Non-compete, non-solicitation, and confidentiality provisions can affect your future options. Their enforceability depends on state law and the specific facts, so evaluate them before signing, not after.

Liability, indemnification, and insurance

Understand who bears the risk if something goes wrong, whether caps on liability apply, and whether your insurance covers the obligations you are accepting.

Privacy and data

If a vendor will handle protected health information on your behalf, a business associate agreement is generally required. Confirm how data is secured, returned, or destroyed.

Regulatory fit

Compensation and referral-related terms in healthcare can raise federal fraud and abuse questions, including under the Anti-Kickback Statute and physician self-referral law. HHS-OIG’s General Compliance Program Guidance summarizes these laws. If an arrangement involves referrals or payments tied to federal healthcare programs, get a legal review.

A simple habit

Keep a contract log with parties, key dates, renewal terms, and the person responsible. Many contract problems are simply missed dates.