Author Topic: Contract  (Read 1334 times)

TammyL

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Contract
« on: February 16, 2015, 06:06:56 PM »
I had a contract with a therapy group for 1 year it was due to end 5.31.15 well the company calls me over the phone an let me go today there explantation is they found a biller to do it cheaper than the the 6% I was charging for 10.00 an hour per the contract it states they must give me a 30 day written notice which they ddi not can I take legal action for the remaining 4 months of the contract since they did not give me a written notice.

kristin

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Re: Contract
« Reply #1 on: February 16, 2015, 07:19:35 PM »
They breached the contract, so yes, you can take legal action. But what I would weigh before doing so is what it would cost you to take that legal action, versus that they didn't give you thirty days written notice. While I think what they did was a jerk move, it may not be worth it to pursue it. And maybe their new biller will stink, and they will want you back...I say leave it alone, and if they do come back to you, forget the percentage billing, and charge them $15 an hour.  ;)

PMRNC

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Re: Contract
« Reply #2 on: February 17, 2015, 09:43:07 AM »
Quote
I had a contract with a therapy group for 1 year it was due to end 5.31.15 well the company calls me over the phone an let me go today there explantation is they found a biller to do it cheaper than the the 6% I was charging for 10.00 an hour per the contract it states they must give me a 30 day written notice which they ddi not can I take legal action for the remaining 4 months of the contract since they did not give me a written notice.

Kristen said it well. Are you all paid up? (assuming not if your on a %). This is one of the many pitfalls of charging a %.. the contract can end but the money can trickle in slowly that should be yours and when another billing company steps in, you are left to wait for the payments and EOB's/ERA's. hoping you get them at all. What I would do is send them a nice letter, be understanding, stuff happens, may not be anything you did or didn't do. Remind them nicely they were required to give you 30 days notice and attach a copy of the contract. I would also highlight all the provisions of your termination clause (data, money owed, sending you ERA/EOB's, etc.   Give them the benefit of the doubt that they just were a little ignorant on the contract verbiage or took you for granted. See how that plays out. If you were billing on a % than you will have money trickling in anyway that should be yours, you just want to make sure your contract covered all of that in the termination clause.
Linda Walker
Practice Managers Resource & Networking Community
One Stop Resources, Education and Networking for Medical Billers
www.billerswebsite.com

TammyL

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Re: Contract
« Reply #3 on: February 17, 2015, 03:00:31 PM »
Thanks lady's for your response I spoke with my attorney an he stated to me to give a week to cut me my final paycheck. There was no other billing service involved they let me go due to they could not afford the 6% an hired a in-house biller for $10.00 an hour

PMRNC

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Re: Contract
« Reply #4 on: February 17, 2015, 03:56:59 PM »
Quote
Thanks lady's for your response I spoke with my attorney an he stated to me to give a week to cut me my final paycheck. There was no other billing service involved they let me go due to they could not afford the 6% an hired a in-house biller for $10.00 an hour

Well that $10 an hour comes to about $25 an hour by the time you add all the incidentals.. but it happens..
BE sure that your contract states what a "final paycheck means" .. if you were billing on a % of collections.. the practice technically may not HAVE a final paycheck for you.. Let's say you did a batch of claims for $5000 on 2/1.. well Since you bill on % of collections.. the practice is not required to pay you for anything beyond the % for what they receive between now and the 7 days (week) the attorney advised you.  This is why I asked you what your termination clause stated.. Attorney or not, if your contract wasn't specific, you could lose out on all that money you billed.
Linda Walker
Practice Managers Resource & Networking Community
One Stop Resources, Education and Networking for Medical Billers
www.billerswebsite.com