Author Topic: Client Termination  (Read 1653 times)

jcbilling

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Client Termination
« on: August 05, 2009, 10:13:38 AM »
I have a client that I bill for. He has three locations with 4 providers. When we signed the contract, the owner of the group signed one contract for all three locations. He called me today and wants to take back the billing for the larger office, but wants me to keep billing for the other two locations.

My contract states the following:

4.  Term/Termination.  Either party, upon forty five (45) days prior written notice, may terminate this agreement.

However, he wants to take it back as of August 1, 2009 - 4 days ago. I told him if faxed me over a notice, I would include today and count 45 days - at that point, we would no longer process any more chrages, just follow-up and collect on what was already billed by our office. When I referred him to the contract, he said I couldn't force him to send the work to him.

Any suggestions on how to handle this? I contacted a local attorney (the client is in a different state) but I'm wondering if there is a way to handle this without going that route or is that the only way to do it.

I've never had a client terminate with us before - so this is all new to me. I know that I need to update my contract to be more specific :)

One thing is for sure - I'm learning moreand more every day I'm in this business!!!!

PMRNC

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Re: Client Termination
« Reply #1 on: August 05, 2009, 11:13:01 AM »
Well your termination clause is not specific enough. My term clause actually goes into detail what takes place in that 45 days, I don't take on anymore work when notice is given, that time is used to clean-up what has been billed as of the date of the notice. For example, if a client sent me written notice of termination as of 8/1/09, I would at that point not process any further claims and instead would clean up the accounts within the termination period. If they sent me a termination effective 9/1 then I would continue to service the client as per my contract up to that date.
Now that's just my termination clause preference.

In my opinion, why argue? He's technically right as you nor your contract can force him to send work to you without going to court and if a client is unhappy or just wants out, it's best (IMO) to just let it go and keep a good relationship.
If you push the envelope you will be in court longer than that termination period and just prolong the inevitable in addition to creating duress. What I would do is negotiate outside the contract in a separate agreement how the termination process will go with him.  Also in looking to the future here is your contract specific on the procedures to follow the termination? (database, data, records, copies, reports.. etc)   You might want to review that JUST in case that comes up as well.
Linda Walker
Practice Managers Resource & Networking Community
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Pay_My_Claims

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Re: Client Termination
« Reply #2 on: August 05, 2009, 11:33:24 AM »
OMG, I was about to post something and it said a reply has been posted.......I was going to say, the same thing!!! 

jcbilling

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Re: Client Termination
« Reply #3 on: August 05, 2009, 11:00:13 PM »
I believe I will write up an agreement on how the termination process will work, what will happen after that 45 days notice - that is a great idea.

I did receive a written notice today and he agreed to the 45 day period. It actually is a blessing in disguise, becuase this was a very challenging client - it's almost a relief to see the account go. Although I will miss the nice pay every month, I know there are better ones out there and will not miss all the headaches I've gotten from dealing with this account :)

It definitely will make me update my contract in many places. I think I read on here in a different post about thinking of the worst case scenario and solving it in the contract. Gotta work on that!

Thanks so much ladies - I appreciate your help.

~ Charity

Pay_My_Claims

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Re: Client Termination
« Reply #4 on: August 06, 2009, 09:11:45 AM »
You are welcome