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Medical Professional Services Agreement

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A robust contract defining the scope, billing, and responsibilities for independent medical contractors, locum tenens, or contracted specialists.

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Medical Professional Services Agreement
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Good to know

Step-entering a medical partnership or taking on a locum tenens role is an exciting step in your healthcare career, but it requires a solid foundation to protect your practice and your patients. A Medical Professional Services Agreement is the essential contract that defines exactly how an independent medical contractor, specialist, or temporary clinician integrates into a healthcare facility. You need this document whenever you are hiring external medical expertise or stepping into a contracted role yourself, ensuring clear boundaries between clinical autonomy and administrative operations. A truly robust agreement does not just cover hours and hourly rates; it establishes precise billing rights, outlines medical malpractice insurance responsibilities, and clarifies who owns patient records. By setting these mutual expectations upfront, you prevent billing disputes and compliance headaches, allowing you to focus on what matters most: delivering exceptional patient care.

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Frequently asked questions

Who typically pays for malpractice insurance in a contractor agreement?

In locum tenens agreements, the hiring facility or staffing agency usually covers the malpractice premium, including tail coverage. For standard independent contractor specialists, the provider is typically expected to carry their own professional liability policy and provide proof of coverage to the facility.

What is a reassignment of billing rights and why is it necessary?

A reassignment of billing rights is a legal clause that permits a healthcare facility to submit insurance claims and collect payments for services rendered by the contracted physician. Without this explicit transfer, government payors like Medicare and Medicaid will not reimburse the facility for the contractor's work.

How do we handle patient records if the contracted physician leaves?

Patient records legally belong to the medical practice or facility where the care was delivered, not the individual contracting physician. The agreement must state that the facility retains ownership of these records, while granting the departing physician access rights if needed for future legal or auditing purposes.

Can a medical services agreement include a non-compete clause?

Yes, but its enforceability depends heavily on state laws, as many jurisdictions strictly limit or ban non-compete clauses for physicians to ensure patient access to care. A safer, more enforceable alternative is to use non-solicitation clauses that prevent the departing provider from actively recruiting the facility’s patients or staff.

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