Whenever you add a new patient to your practice, you ask for the patient's Social Security number, the name of the third-party insurance carrier who will pay the patient's bills, and insist that the patient sign an agreement indicating that s/he understands the terms and conditions under which you will agree to act as a healthcare provider.
When an independent contractor or a transcription agency asks you to sign a contract, you are being asked to agree to a similar set of rules. Strangely enough, many doctors take umbrage at being asked to sign a contract or letter of agreement. What they fail to understand is that such agreements are used to protect both parties.A contract delineates the terms and conditions under which work is to be performed, delivered to, and paid for by the client. If either side becomes unhappy with the other's performance, it is much easier to read the contract and determine what options for future action are available.
To put it bluntly, a contract is very much like a condom. You don't want to enter into a business relationship without one.
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