Replace vague definitions with clear contract language

Give the definitions section of your contracts some muscle to strengthen your case should you ever have to take on a payer in a lawsuit. You might even find that strong contract language can help to keep you out of the courts altogether. Too often, the language in definitions is vague and left open to misinterpretation or the payer’s interpretation, as the case may be.

Use consultants or attorneys with whom you either have prior experience or who have been personally referred to you by a trustworthy source. These advisors should be able to review proposed contracts and find the weak spots that need more precise language, further clarification, or detailed description.

If it is too costly to have a source review all of your contracts, prioritize the ones that have the highest potential for risk and generate the most revenue and review those only.

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.