🩺 15 Types of Healthcare Contracts Every Provider Should Understand
From physician hiring to technology licensing and patient transfer agreements, healthcare organizations rely on a wide variety of contracts to operate legally, efficiently, and compliantly.
Whether you're managing a small private practice, a multi-specialty group, or a growing outpatient center, understanding the different types of healthcare contracts is essential to reduce risk and protect your bottom line.
This guide breaks down the most common healthcare agreements and what providers need to know about each.
1. Physician Employment Contracts
These contracts outline a physician’s compensation, benefits, termination conditions, on-call obligations, and non-compete clauses. A well-drafted employment agreement protects both the provider and the organization—and is key to attracting and retaining top medical talent.
2. Recruitment Agreements
Used when organizations offer incentives to recruit physicians, these agreements must comply with Stark Law and Anti-Kickback Statute (AKS) regulations. Legal oversight is crucial to structure these contracts properly and avoid triggering referral-based penalties.
3. Management Services Agreements (MSAs)
MSAs allow healthcare providers to outsource non-clinical functions—like staffing, billing, or facility management—to third-party vendors. Proper structuring ensures regulatory compliance and efficiency while avoiding issues with corporate practice of medicine laws.
4. Medical Directorship Agreements
Medical directors help develop protocols and oversee clinical care. These agreements must be carefully drafted to comply with the Anti-Kickback Statute, particularly in how compensation is determined and documented.
5. Patient Transfer Agreements
Hospitals and outpatient facilities use transfer agreements to outline procedures, responsibilities, and liability when transferring patients between locations. These contracts support EMTALA compliance and continuity of care.
6. Technology Licensing Agreements
Healthcare practices rely on EHR platforms, billing systems, and telehealth tools. Licensing agreements should define usage rights, support terms, and data security obligations under HIPAA.
7. Executive Compensation Contracts
Healthcare executive contracts cover salaries, bonuses, stock options, and benefits. These must be drafted with attention to IRS regulations and nonprofit governance standards when applicable.
8. Joint Venture Agreements
When two healthcare entities collaborate, a joint venture agreement outlines shared profits, liability, compliance duties, and operational roles. These contracts must meet Stark, AKS, and state law requirements.
9. Purchased Services Agreements
Hospitals frequently use these contracts for third-party services like lab work, imaging, or janitorial support. These should address pricing, performance metrics, and compliance with safe harbors under AKS.
10. Under-Arrangement Agreements
Used when a contracted provider delivers services billed under the main facility’s NPI, these agreements are complex and must address billing structure, compliance protocols, and fair market value (FMV) standards.
11. Real Estate and Lease Agreements
Medical office leases and real estate purchases must comply with Stark Law leasing exceptions, include FMV terms, and avoid tying rent to referrals. Poorly structured leases are a top trigger in OIG investigations.
12. Medical Equipment Contracts
These contracts often involve leasing diagnostic or therapeutic equipment. Agreements should include maintenance schedules, upgrade options, and termination rights, all while satisfying FMV requirements.
13. Ancillary Services Agreements
These contracts cover escrow services, transition planning, or shared resource agreements post-acquisition or merger. Though behind-the-scenes, these documents ensure regulatory compliance and smooth operations.
14. Supervision Agreements
Hospitals with teaching programs use supervision agreements to define resident supervision protocols. These contracts support accreditation compliance, malpractice risk mitigation, and clear role definitions.
15. Payor Contracts (Commercial & Government)
Payor contracts are foundational agreements between healthcare providers and insurance companies, Medicare Advantage plans, or Medicaid Managed Care Organizations (MCOs). These contracts determine:
Reimbursement rates
Billing procedures
Appeals processes
Credentialing requirements
Audit and recoupment policies
Timely filing deadlines
🧠 Final Thoughts
Understanding these key healthcare contracts can help your organization avoid legal risk, optimize operations, and stay compliant with ever-evolving healthcare regulations.
Need help reviewing, drafting, or negotiating a healthcare contract? Let’s protect your business before issues arise.
Hurley Law Group
Healthcare Law for Small & Midsized Providers
📞 308-383-1867
🌐 hurleylawgroup.com
✉️ eric@hurleylawgroup.com