Dear physician, where are the contracts?

Even after many years of working with physicians, I am still surprised by the poor record-keeping habits of private practices. I'm not talking about medical record documentation -- that's a whole other issue. What I'm talking about is business records -- and more particularly legal agreements. When a physician client contacts me with a problem, very often it involves some contractual relationship such as a managed contract, employment agreement, service agreement or lease. Of course, my first request is that they send me a copy of the signed agreement underlying the relationship. Amazingly, more often than not I am told that they don't know where the signed agreement is or they send me an unsigned draft or an expired agreement.

So are your contracts organized? When was the last time they were reviewed? Are they outdated? If I came in to your office tomorrow, can you put your hands on any contract I ask for? Please give this issue some priority before the end of the year.

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.