🧨 5 Common Legal Myths in Healthcare—Debunked for Small Providers

There’s no shortage of bad legal advice in the medical world—especially for small and solo providers. Whether it’s a tip from a colleague or something you read online, healthcare compliance myths can put your practice at serious risk.

Let’s bust the most common legal myths in healthcare so you can avoid costly mistakes and protect your practice.

❌ Myth #1: "If the patient doesn't complain, I’m in the clear."

• Reality: Patient complaints are not the only way legal problems start.

  Many audits, investigations, and lawsuits begin with:

  • Billing anomalies

  • Data breaches

  • Payor reviews

  • Random or targeted audits by CMS or commercial insurers

  Even if no patient has ever complained, your billing and compliance practices could be exposing you to liability.

❌ Myth #2: "I can use a free contract template I found online."

• Reality: Most free templates are not healthcare-compliant—and they can do more harm than good.

  Why? They often:

  • Miss key provisions required under HIPAA, Stark Law, or state regulations

  • Don’t define protected health information (PHI) properly

  • Ignore scope-of-practice issues for mid-level providers

  • Fail to meet fair market value or commercial reasonableness standards

  📌 Pro Tip: Use contracts tailored to healthcare—not general business law.

❌ Myth #3: "HIPAA doesn’t apply to small or solo practices."

• Reality: If you transmit patient health info electronically (e.g., through billing or EHRs), HIPAA applies—no matter your size.

  Small practices are especially vulnerable because they:

  • May lack formal HIPAA training programs

  • Often skip Business Associate Agreements (BAAs)

  • Use unsecured tools (free email, cloud storage, etc.)

  💡 Even solo providers need a HIPAA compliance plan that covers privacy, security, and breach response.

❌ Myth #4: "If my payor contract is bad, I’m stuck with it."

• Reality: Many payor contracts can be renegotiated, terminated, or challenged—even if you’ve signed.

  Look for:

  • Auto-renew clauses with specific opt-out windows

  • Material change provisions that allow you to reject new terms

  • Termination rights with 60–90 days' notice

  📌 Don't assume you're locked in. Know your rights under the agreement.

❌ Myth #5: "Non-compete clauses aren’t enforceable.”

• Reality: It depends on your state law—but don’t assume they’re void.

  Some states (like California) ban non-competes entirely, while others enforce them if they're reasonable in:

  • Duration (e.g., 12–24 months)

  • Geographic scope

  • Protected interests (e.g., trade secrets, patients)

  ⚠️ A poorly written clause may not hold up—but a well-drafted one often will.

🧠 Final Word

In healthcare, myths can be expensive—especially when they shape your contracts, policies, or compliance practices. Before you trust what a colleague told you, or copy something from a forum, make sure your legal approach is actually grounded in healthcare law.

Need a legal health check? I’ll help you separate fact from fiction—and protect your business before a payor or regulator shows up.

📧 eric@hurleylawgroup.com
🌐 hurleylawgroup.com
🗓️ Book a consult today!