PART 3 OF 4: The Clauses Specific to Healthcare

The terms a general contract template leaves out.

Healthcare service agreements need clauses that ordinary business contracts do not, because the relationship is subject to rules about compliance, patient information, and referrals that other industries never face. A generic template will omit these, leaving real exposure. This part addresses the clauses specific to healthcare agreements.

Compliance with healthcare laws

A healthcare service agreement should require both parties to comply with applicable healthcare laws and should address what happens if the law changes during the term. Because healthcare regulation shifts and because non-compliance can taint the arrangement, a compliance clause, and often a right to amend or terminate if the law changes, protects both sides.

HIPAA and the business associate agreement

Where a vendor or contractor will handle protected health information, the arrangement requires a business associate agreement, and the service agreement should reference and require it. Failing to put a business associate agreement in place where one is needed is a common and consequential omission that leaves patient information, and the parties, exposed.

Fraud-and-abuse compliance

Where the relationship involves referrals or could implicate fraud-and-abuse laws, the agreement should be structured and drafted to comply:

• Compensation set at fair market value and not tied to referrals.
• Terms designed to fit applicable safe harbors or exceptions.
• Representations that the arrangement complies with applicable law.

Records and data handling

Healthcare agreements should address the handling, ownership, and return of records and data, including patient records, in a manner consistent with privacy law. Who controls the records, what happens to them on termination, and how data is protected are questions a general template does not answer but a healthcare agreement must.

Why generic templates fall short

A contract borrowed from another industry, or a generic form, will typically miss all of these. The result can be an agreement that looks complete but omits the very terms that address a healthcare business's greatest risks. These clauses are not optional additions; they are what makes the agreement fit for a healthcare relationship.

How West Coast Health Law Can Help

We make sure healthcare service agreements include the compliance, HIPAA, fraud-and-abuse, and records clauses that general templates leave out.

West Coast Health Law offers a FREE consultation which you may schedule by clicking the button on our website.

This article is provided for general informational purposes only and does not constitute legal advice or create an attorney-client relationship. Laws change and every agreement is different; consult a qualified attorney about your specific situation.