Vendor Contracting

Physician practices frequently establish relationships with vendors who supply software and other services not provided directly by a practice’s employees. Practices may contract with these vendors for several kinds of services, including:

• Credit/debit card processing: Allows a physician practice to maximize collections by accepting credit and debit card payment while patients are in the office
  
  Learn more:
  - Shopping for a Credit or Debit Card merchant Agreement: Guidelines for physicians
  - What do I need to know about payer and patient credit cards
• Practice management systems: Practice management system (PMS) software typically organizes your practice's administrative and billing functions. Use our five-step guide to optimize the process of selecting PMS software for your practice, or get the information your practice needs to select the right software for your practice with the help of our vendor directory:
  
  Learn more:

         Selecting a Practice Management System toolkit

         Practice Management System Software (PMSS) vendor directory

• Billing service: Provides a number of services related to back office billing functions, which may include billing, accounts receivable and collections
  
  Learn More:
  
  - What is a medical billing service
  - Data ownership issues for the physician practice and medical billing service
  
• Clearinghouses: Sorts, formats and translates physician practice claims and other administrative transactions into a format accepted by payers
  
  Learn more: - What is a clearinghouse?
  
• Collection service: Collects delinquent accounts receivable
  
  Learn more: - How to select a collection service

A contract with your vendors is essential to set clear expectations for each party’s responsibilities in the relationship. Protect your practice by learning more about vendor contracting and negotiation.

Know who’s responsible

When considering vendors for a product or service, do an internal assessment of who on your staff will be involved in the vendor relationship. Include those individuals in the research and choice of vendors. Their insights can be invaluable in making the right choice.

Know what you want

The best product or service on the market may be very impressive, but that doesn’t mean it will be right for your physician practice. Take time to develop a full understanding of what you need and be specific about the questions you ask during your vendor assessment. Use our member resources to determine your needs and to get a full understanding of the capabilities of the products and services you are considering.

Know what you’re signing

Have your lawyer review the contract before you sign a vendor contract so that you fully understand your obligations in the relationship. Refer to Succeeding from medical School to practice for more valuable information on vendor contracting.