How to Draft a Contract
Posted on June 11, 2018
Yes, you work in a medical practice. But despite the term, remember that the practice is actually a BUSINESS, and as a business professional, it is very important to know how to draft a contract. However, we run into this issue with our clients all the time: you went to school to practice medicine, not draft contracts, and the loopholes are painfully obvious in those contracts.
Before we explain to you how to draft or review a contract, remember that a contract is a written agreement that is going to be enforceable by law. Each contract should define the roles of each party that is included in the contract. When this contract is signed, both parties agree to the terms and conditions that have been written whether they’re for employees, independent contractors, capital equipment, general business, or patient contracts. Each of these contracts has something different to offer.
More so, there is also a difference in each contract in which they could be HIPAA, confidentiality, or non-disclosure agreements. This will determine the amount of information that the owner has and will be kept to the owner only. If anyone doesn’t follow the terms and the details that are drawn out, the contract should also include the penalties if the contract is violated.
So far, we have talked about how to draft a contract and what’s included. However, it is also important to know how to have a proper exit strategy as well. An exit strategy is normally used in an event in which something is not satisfied by either party. This exit strategy should include basic financial information, the full amount of agreement, and how parties will be paid.
All in all, it is always wise to seek professional advice when drawing up a contract. There could be something that you left out of the contract that may not make it legally binding, so it’s wise to make sure that you have everything in order from a legal perspective. If you were to do this, then that would make your exit strategy run smoothly and also be less stressful.
Click here to read our article in Dermacope magazine’s “The Business Breakdown: How to Draft a Contract.”
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