How to construct a practice consulting agreement

Contract Language. By Steven M. Harris, AMNews contributor. July 10, 2006.

CONTRACT LANGUAGE

A column examining the ins and outs of contract issues

SEE ARCHIVES

Recently a client of mine received a proposed consulting agreement from an outside practice group.

Consulting agreements usually are structured for the provision of certain administrative and management services by a physician for a practice group, pursuant to an independent contractor arrangement. Consulting agreements are also used when a physician sells his practice and the purchaser wants to retain the selling physician on a consulting basis to assist with a transition.

My physician client's deal was the first kind. He was asked to assist a practice in developing expertise, providing staff training and education, and establishing treatment protocols. This physician, as well as any doctor, should consider the following terms when deciding whether to sign a consulting agreement: duties and responsibilities, restrictive covenants, fee and charges, indemnity and termination provisions.

This physician, as well as any doctor, should make sure the contract is extremely clear that the consultant is not treating patients, nor is the consultant getting paid specifically based on any patients the practice treats.

Physicians first should look to make sure that all duties are specifically spelled out in the contract, whether they be administrative and management services; analysis and advice regarding office procedures; patient relations and marketing; utilization review; evaluation of internal controls; or anything else. Medical services are typically not provided in these sorts of agreements.