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RE: Practice Start up

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PMRNC:
Yeah, I have two different types of contracts because I also do consulting, I contract them separately.

DavidZ:
How do you state the term(duration) on the practice start up project?
In some cases credentialing part will take over 4 months?

PMRNC:
I don't put in completion date, instead the contract is worded so as to reflect that I will work until the "project" is complete, but then I also have a contingency clause that will allow me to back out in certain situations (provider non compliance, breach of contract, etc)  If I am doing JUST credentialing the provider is given a contract that reflects the services of just that, there are requirements on their part ot fulfill the requirements of the contract for them and me. If I am doing billing plus credentialing the credentialing is included in my full practice management contract and if they breach any part of that contract the contingency clause is also there to allow me "out" even if the problem is with the billing. For example, let's say I find out the office is upcoding or routinely waiving patient out of pocket balances, my fast "out clause" is then exercised which allows me to OPT out of the entire contract. Same would apply if I'm doing other tasks with credentialing or just credentialing, if their requirements are not met I can get out.  When I do consulting I either charge flat rate for certain amount of hours and it's payable in intervals, so let's say I am 2 months into a contract with a provider I am doing credentialing with and according to the payment terms his second payment was due and he didn't pay me, that contract allows me to get out, of course I don't always exercise the OUT clause right away, I might ADMINISTRATIVELY decide to give him a warning first. If it's not anything to do with fraud, suspicion of fraud or anything like that I usually try to work with the client to make things right on either end. But the best thing about that clause in my contract is that it allows me the freedom to make that decision administratively I'm not bound to do that, I can legally cut them off as soon as their payment is late.  Now in situations where you are billing by other means you will have to set your own guidelines as to what administrative means. For example if you charged the provider a flat fee of $1000 for credentialing, your contract has to make available the terms of breach of that contract as well as what happens if they paid you and what happens if they don't. It depends on when you get the payment. That's why I like to get my money at set intervals for consulting. If I do training I expect payment on the day I am there to train and they know this up front.

DavidZ:
This is great info Linda.
Thank you.

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