7 Types of Healthcare Contracts You Need For Compliance
- AskAngie
- Dec 1
- 7 min read
Let’s talk healthcare contracts—and why they aren’t just boring legal documents full of jargon you’d rather avoid. These contracts are the backbone of your practice’s success and compliance, but if you treat them like paperwork to skim over, you could be putting your entire practice at risk—sometimes even bankrupting it. Sounds dramatic? It is. But don’t worry, we’re here to break down the long, intimidating contracts into what really matters. Think of this as your friendly, ick-free guide to the healthcare contracts you actually need—and how they protect your practice every day.
7 Types of Healthcare Contracts You’ll Need as a Physician
Contracts might not be the most thrilling part of running a medical practice, but they are absolutely essential. Think of them as your practice’s safety net. Skipping over or ignoring the right healthcare contracts is like leaving your front door wide open. You might think contracts are just boring legal mumbo jumbo, but these documents actually protect your money, your reputation, and your peace of mind. Ready to get ahead of the game? Let’s dive into the 7 must-have contracts every compliant medical practice needs to keep things running smoothly and safely.
Patient Treatment Consent Forms
Patient consent forms are more than just paperwork; they’re a crucial part of protecting your practice and building trust with your patients. For concierge practices, these forms must include clear disclosures that inform patients about the unique nature of concierge medicine, including fees, services offered, and the absence of insurance billing.
Transparency is key to avoiding misunderstandings and legal troubles down the line.
Insurance-based practices face their own set of requirements. Patient consent forms must comply with HIPAA regulations to protect patient privacy, and insurers often have specific language that must be included to meet their policies. Failing to get the right consents can lead to audits, fines, or claims denials that jeopardize your revenue and reputation.
Getting these forms right can feel complicated, but it’s essential for compliance and patient satisfaction.
Want to see how we helped a physical therapist navigate tricky patient consent requirements and stay fully compliant? Check out their story here—it’s a game changer for understanding consent without the usual headache.
HIPAA Compliance Policy & Notice of Privacy Policy
HIPAA Compliance Policies and the Notice of Privacy Practices are foundational for any medical practice, yet many small practices fall short by relying on generic 5-page templates downloaded from their EHR systems. These simplified documents often miss critical details and fail to fully protect patient information, leaving practices vulnerable to costly breaches and penalties.
True HIPAA compliance is more than just having a policy—it requires addressing seven key components, from administrative safeguards to technical protections. One of the first and most important steps is conducting a thorough risk analysis assessment. This involves auditing your entire practice to identify all possible vulnerabilities where Protected Health Information (PHI) could be at risk, whether from cyber threats, employee mishandling, or outdated systems.
Without this comprehensive approach, you’re flying blind when it comes to protecting your patients and your practice. For a deeper dive into what full HIPAA compliance entails, check out the DataShield HIPAA compliance system—a proven solution to help you meet all requirements and safeguard your practice effectively.
Employment Contracts
Employment contracts are essential for medical practices to clearly define the relationship between the practice and its staff, protect both parties, and ensure legal compliance. One critical aspect is proper classification of workers—whether they are employees or independent contractors. Misclassification can lead to costly penalties, back taxes, and legal disputes that disrupt your practice’s operations.
Additionally, medical practices must navigate complex corporate practice of medicine (CPOM) laws, which regulate how and whether certain clinical roles can be employed by non-physicians or entities. These laws vary by state and are designed to maintain the integrity and independence of medical decision-making. Failure to comply can put your entire practice at risk.
A well-drafted employment contract addresses job duties, compensation, termination terms, and compliance with CPOM rules, reducing misunderstandings and potential litigation.
Check out how we helped a chiropractor avoid a wrongful termination lawsuit in just 7 days by creating clear, compliant employment agreements and guiding them through state-specific regulations.
Having solid employment contracts in place means protecting your practice, your staff, and your patients—all while giving you peace of mind to focus on care.
Business Associate Agreements (BAAs)
Business Associate Agreements (BAAs) are a crucial part of the types of healthcare contracts every medical practice needs to have in place. A BAA is required whenever you work with a vendor or third party that has access to Protected Health Information (PHI). This includes not only billing companies and auditors but also Electronic Health Record (EHR) providers and any service that handles patient data on your behalf.
The purpose of a BAA is to clearly define each party’s responsibilities for protecting PHI. It specifies the procedures that must be followed if a data breach occurs, including how and when notifications must be made to the practice and affected patients. It also outlines risk mitigation measures and importantly, who will be responsible for penalties or damages resulting from a breach.
Failing to have properly executed BAAs can leave your practice exposed to serious HIPAA violations and costly fines. Having these agreements in place protects your patients’ privacy and your practice’s reputation by ensuring vendors are legally bound to safeguard sensitive information.
If you want to learn more about the essential types of healthcare contracts your practice needs, let’s talk about how we can help.
Vendor Agreements
Well-drafted vendor contracts are essential for any medical practice to protect against unexpected risks and costly disputes. In healthcare, vendor contracts often cover services, medical equipment purchases, licensing agreements, and more. These agreements can be complex and lengthy, with detailed terms outlining what happens if something goes wrong—like equipment failures, delayed deliveries, or payment disputes.
For example, medical device contracts sometimes include ballooning repayment schedules or guarantees that are difficult to enforce, putting your practice’s finances at risk. Without clear, carefully negotiated terms, you could be stuck with unfavorable conditions that hurt your bottom line.
Reviewing healthcare contract examples can help you understand common pitfalls, but every contract should be tailored to your specific needs and risks. That’s why having expert legal guidance before signing is critical.
Don’t sign on the dotted line without knowing exactly what you’re agreeing to. Book a Contract Clarity Call today and get a professional review to uncover hidden risks and protect your practice before it’s too late.
1099 Independent Contractor Agreements
One of the most common questions medical offices ask is, “Which contract is most often used in the medical office?” The answer: 1099 independent contractor agreements. Many practices opt to classify team members as independent contractors without proper legal guidance, which can lead to hefty fines—ranging from $2,500 to $7,500 depending on the number of misclassified workers. In Georgia, laws changed three years ago, creating a presumption that workers are employees unless strict criteria are met.
If your team member truly qualifies as a 1099 contractor, having a solid independent contractor agreement is essential. This contract protects your proprietary information—your practice’s unique “special sauce,” including your vision and goals they may encounter while working with you. It also ensures they understand their role and responsibilities clearly.
Additionally, if these contractors have access to Protected Health Information (PHI), they must sign a Business Associate Agreement (BAA) to comply with HIPAA requirements and protect patient privacy.
Business Formation Documents
When it comes to forming your medical practice, relying on free or cheap business formation templates can be a costly mistake. Attorney-drafted business formation documents are crucial because they are tailored to the unique complexities of medical practices and help prevent future legal battles. Unlike generic templates, professionally prepared documents take into account the specific structure you choose—whether it’s a professional corporation (PC), a multi-member LLC, or more complex arrangements like a PC-MSO (Professional Corporation–Management Services Organization) structure.
These formation documents—such as bylaws for corporations and operating agreements for LLCs—act like a “business prenup.” They clearly define roles, responsibilities, decision-making authority, and dispute resolution methods among owners or partners. Without them, you risk internal conflicts that can deadlock your practice and stall growth.
For example, we helped an optometrist avoid an unfavorable 50/50 shareholdership where no clear decision-making protocol existed, which would have led to a costly deadlock. Our intervention helped draft proper governance documents that clarified authority and kept the practice moving forward.
Medical practice businesses are even more complex due to Corporate Practice of Medicine (CPOM) laws, which regulate ownership and control to protect patient care integrity. Attorney-drafted documents ensure you comply with these rules, protecting your license and investment.
Don’t gamble your practice’s future on generic forms. Properly crafted formation documents provide the legal foundation for growth, protection, and harmony—so you can focus on what matters: caring for patients.
Get Peace of Mind with Healthcare Contracts Reviewed by a Healthcare Compliance Lawyer
Ready to stop stressing over complicated contracts? Book a Contract Clarity Call and have one of your healthcare contracts reviewed by an experienced healthcare compliance lawyer. Whether it’s a patient agreement, vendor contract, or partnership deal, we’ll help you spot risks and make sure everything protects your practice.
If you need a broader review, check out our Audit Services—perfect for auditing multiple compliance contracts at once to keep your entire practice secure and worry-free.
Take control of your contracts today with expert guidance tailored to your needs.
What should a physician contract include?
A physician contract should clearly outline your compensation structure, including any productivity-based bonuses or incentives. It must also specify exit terms—how to properly give notice and what happens if you pursue your next opportunity. Non-compete clauses (if applicable) are crucial and should be fair under Georgia law, avoiding overly restrictive terms that could limit your future career options. If you’re unsure whether your contract’s non-compete is enforceable or need clarity on any terms, book a 45-minute Understand My Physician Contract session to get expert answers and protect your professional future.
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