Expert answer:Contract Review

Solved by verified expert:Healthcare organizations enter into written contracts every day. Typically, the HIM professional secures contracts for transcription, record copying, imaging, record storage, coding, other outsourcing, or consulting services. Although contracts can prevent confusion and conflict, they can also bind the inattentive signer to conditions that are difficult or impossible to meet.Your CEO and CFO are in the process of reviewing contracts between outside vendors and your organization. They have asked you to review the current contract you have with ABC Coding Services. Your focus will be to identify any areas which may mitigate risk to the organization.As you read the contract, think about the requirements you have for your own staff within the HIM department: Confidentiality standards and requirements, disclosure or redisclosure of patient information, productivity standards, HIPAA privacy rule (42 CFR, Part 160-164)Include the following.Review the current contract with ABC Coding Services: ABC Coding Services Contract.Identify five (5) areas you feel might pose a risk to the organization.Determine how you would change the risk areas addressed in the contract.
abc_contract.docx

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Contractual Agreement
This agreement is made effective as of September 1, 20XX, by and between ABC Coding
Services and Rasmussen Hospital and Clinics. In this Agreement, the party who is
contracting to receive services shall be referred to as Rasmussen Hospital and Clinics,
and the party who will be providing the services shall be referred to as ABC Coding
Services.
The parties agree as follows:
Description of Services: Commencing September 1, 20XX, ABC Coding Services will
provide the following services (collectively, the “Services”):
1. Provide ICD diagnoses and procedure codes for inpatient services
2. Provide ICD diagnoses for outpatient services
3. Provide CPT codes for outpatient services
Performance of Services:
• Rasmussen Hospitals and Clinics will rely on ABC Coding Services to work as many
hours as may be reasonably necessary to fulfill the obligations under this agreement.
• Rasmussen Hospital and Clinics will not review assigned coders’ resumes, contact
previous healthcare facilities, and reject any coders of ABC Coding Services
• Rasmussen Hospital and Clinics will not review coded records from ABC Coding
Services as to acceptable standards of coding accuracy and how performance will be
measured
• Rasmussen Hospital and Clinics will not terminate the use of a particular coder when
acceptable standards of accuracy are not maintained
Price and Payment Terms: Rasmussen Hospital and Clinics will pay a fee to ABC
Coding Services for the Services in the amount of $10.00 per coded record. Upon
termination of this Agreement, payments under this paragraph shall cease, however,
ABC Coding Services shall be entitled to payments for periods or partial periods that
accrued prior to the date of termination and for which ABC Coding Services has not yet
been paid.
Term/Termination: This Agreement shall terminate automatically upon completion by
ABC Coding Services of the Services required by this Agreement. Either party may
terminate this agreement with or without cause by submitting a 2-day written notice.
Relationship of Parties: It is understood by the parties that ABC Coding Services is an
independent contractor and not an employee of Rasmussen Hospitals and Clinics. ABC
Coding Services employees may be eligible for fringe benefits, including health
insurance, holidays, paid vacation, or any other employee benefit from Rasmussen
Hospital and Clinics.
Legal Fees and Court Costs: In the event any legal action is taken to enforce this
agreement or any portion thereof, the party that prevails in that suit shall be entitled to
recover from the other, reasonable attorney fees plus the cost of said suit.
Notices: All notices required or permitted under this Agreement shall be in writing and
shall be deemed delivered when delivered in person or deposited in the United States
mail, postage prepaid, addressed as follows:
Rasmussen Hospital and Clinics, P.O. Box 45, Mytown, MN
ABC Coding Services, P.O. Box 87, Ourtown, MN
Such address may be changed from time to time by either party by providing written
notice to the other in the manner set forth above.
Entire Agreement: This Agreement contains the entire agreement of the parties and
there are no other promises or conditions in any other agreement whether oral or
written. This Agreement supersedes any prior written or oral agreements between the
parties.
Amendment: This Agreement may be modified or amended if the amendment is made
in writing and is signed by both parties.
Severability: If any provision of this Agreement shall be held to be invalid or
unenforceable for any reason, the remaining provisions shall continue to be valid and
enforceable. If a court finds that any provision of this Agreement is invalid or
unenforceable, but that by limiting such provision, it would become valid and
enforceable, then such provision shall be deemed to be written, construed, and enforced
as so limited.
Waiver of Contractual Right: The failure of either party to enforce any provision of
this Agreement shall not be construed as a waiver or limitation of that party’s right to
subsequently enforce and compel strict compliance with every provision of this
Agreement.
Applicable Law: This Agreement shall be governed by the laws of the State of
Minnesota.
Signature Party Receiving Service _________________________________
Signature Party Providing Service___________________________________
…
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