Contracts

PHYSICIAN AND MANAGED CARE CONTRACTS

A contract is a legal binding agreement between two parties that is aimed to execute a certain objective . It is a kind of arrangement wherein a certain action is pledged in exchange for a specific proposition or offer . In for a contract to be valid , four essential elements must be present in a contract . Firstly , two parties should exist in the contract . One party is presenting an offer while the other party is accepting the offer as a form of return for whatever specifications are requested in

the contract . Secondly , the contract should indicate that both parties give their consent or are willing to enter into such an arrangement . Such intention should show that the person giving the offer is capable of providing the offer , while the party accepting the offer should be able to clearly show his /her acceptance of the offer . In addition , both parties must be willing to enter an agreement without any other hidden conditions . Thirdly , a purpose or objective should be indicated in a contract . The purpose should be detailed enough to clearly show what is requested or expected in exchange for the specific offer . And lastly , adequate consideration or an adequate value must be indicated as offer in the contract , in the form of money or in kind . The consideration or compensation can not be given to the accepting party prior to the acceptance of the offer . The act of accepting an offer constitutes a deal . Certain offers have a limited time of availability , wherein an expiration date is indicated and the offer can not be accepted after the said date , unless the offer is renewed or stands indefinitely . In addition , the party presenting the offer has the right to withdraw its offer , but only before an acceptance is received . Once an offer is accepted , the contract may not be modified or revised . Changes in the offer may only be incorporated during the negotiation stage of the agreement , which then makes a contract some kind of a bargain

Similarly , physicians enter contracts with managed care organizations (MCOs ) or health management organizations (HMOs ) in to promote their services . The four essential elements of a contract should be carefully studied before accepting any offer or signing any contract For example , as for the element of willingness and capability to enter a contract , a physician should initially must find out the MCO /HMO 's length of operation and financial stability , because this will give the physician an idea whether the company is capable to pay him at a regular schedule . In addition , it would be good to contact some colleagues who have signed contracts with the same company , in to determine the strengths and weaknesses of the organization and to unearth any unwritten conditions or policies . The physician should also investigate the identity of the MCO /HMO , and any other parties in the contract should there be more than two parties indicated in the contract

The most overlooked element...