A medical services contract is crucial to any business that isn’t paid immediately at the point of sale. Let’s assume you run a medical practice here in Virginia. When it comes time to collect, if your payment terms are loose… expect people to try and slip through the cracks. Avoid that entirely by creating a strong medical services contract, and having them sign it before doing business with you.
A well-written medical services contract can be the difference in your debt collection agency (that’s us!) being able to collect or not. Let’s take a look at some best practices!
Be Clear and Concise
A strong medical services contract starts with clear, concise, and unambiguous language that both parties are easily able to understand. Some “legalese” is unavoidable, but try to keep it to a minimum to ensure both parties understand what they’re reading.
Clearly Identify Parties
Be sure to clearly identify the parties involved in this contract. Most of the time, it will be between your medical firm and the patient. However, that’s not always the case – and if the wrong person signs the contract, it could be rendered unenforceable.
Payment terms should specify the exact amount due, the payment date, and how that amount can be collected. Additionally, clearly spell out what happens if payments are not made on time, such as late fees or interest charges.
Sign On The Dotted Line
Your medical services contract must be signed, by both parties, in writing. E-Signatures are an option for some companies, but it’s always better to get a signature in person.
Without a signed contract, you’ve got nothing!
Customize The Payment Terms for Your Business
Consider the Specific Needs of Your Business
Payment terms may vary from business to business. You’ll need to craft your sticking points in a way that conforms to your day to day operations and the types of customers you serve.
For some businesses, a 90 day payment schedule works well. For others, payments need to come in within 30 days to keep the budget on track. Consider your terms carefully!
Do Your Research
There are some industry standards for payment terms, and there are many legal requirements and regulations to contend with. Do some research, work with your legal team, and talk to your colleagues in similar fields to get a good working knowledge on what you should and shouldn’t do.
Let the Experts Handle It!
Speaking of legal team… you should absolutely have one! If you’re unsure how to write a strong medical services contract, you should get help from a legal team like the team at Gilliam & Mikula. Our attorneys will help ensure that the contract is legally sound and that it protects your interests.
Get in Touch with Gilliam & Mikula
By following these tips, you can write an iron clad medical services contract that protects your business and ensures that you get paid on time. If we can help, get in touch! Fill out the form below to get the process started.
Gilliam & Mikula is centrally located in Richmond, Virginia, and serves clients throughout the Commonwealth of Virginia. Our attorneys have over forty years of combined experience in various practice areas, representing individuals and businesses. We are licensed to practice in all General District Courts and Circuit Courts of the Commonwealth of Virginia including, Central, Tidewater, and Northern Virginia areas, as well as the State of Maryland.
The attorneys at Gilliam & Mikula are here to smoothly guide you through the “legal maze” and ensure that you achieve the most favorable outcome.
The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information.
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