Why is it important for healthcare institutions and stakeholders?

Having a contract that follows the healthcare facility partnership format is important for the following reasons: It defines the responsibilities and obligations of the involved parties. It builds the financial framework for the partnership. Ensure compliance with legal and regulatory standards. This type of contract describes partnership termination and renewal procedures. It lays the basis for conflict resolution and renegotiation. It also enhances accountability and protects the partners against risk.

What are the key provisions typically included in a hospital agreement template?

You’ll find the following sections in a free hospital agreement template : The purpose of the contract involved parties and governing laws. The scope of the hospital partnership. A responsibilities clause listing each party’s obligations to the other for productive engagement. Both parties agreed upon the financial arrangement. A liability and indemnification section.

Are there any specific legal or regulatory requirements to consider when entering into a hospital agreement?

Yes. You must meet legal and regulatory requirements when entering a hospital agreement, including the following: The Health Insurance Portability and Accountability Act ( HIPAA ) of 1996. The Social Security Act governing funding, including insurance schemes such as Medicaid. Compliance with the Anti-Kickback Statute to prevent health facilities from making financially motivated medical decisions. There are more legal and regulatory requirements that hospitals must meet. We recommend checking with state and federal organizations when entering an agreement.

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Hospital Agreement Template

Created by:

[Party B.FirstName][Party B.LastName]

[Party B.Company]

Prepared for:

[Party A.FirstName][Party A.LastName]

[Party A.Company]

This hospital partnership agreement (this "Agreement") sets forth the terms and conditions governing the partnership between [Party A.Company] (Hospital Name), a healthcare facility duly organized and existing under the laws of [Party A.State], hereinafter referred to as "Party A," and [Party B.Company] (Hospital Name), a healthcare facility duly organized and existing under the laws of [Party B.State], hereinafter referred to as "Party B."

This agreement is effective as of (Effective Date) between party A [Party A.Company] (Hospital Name) located at [Party A.StreetAddress], [Party A.City], [Party A.State], [Party A.PostalCode],

and

Party B [Party B.Company] (Hospital Name) is located at [Party B.StreetAddress], [Party B.City], [Party B.State], [Party B.PostalCode].

This agreement is entered under the laws of [Party A.State]. Any conflict, legal action, mediation, or proceeding pertaining to this contract shall be instituted in the courts in [Party A.State]. Parties submit exclusively to the courts of the stated jurisdiction for any necessary conflict resolution. By signing this agreement, parties confirm they have relevant consents.

Purpose of the Contract

This agreement establishes a cooperative partnership between Party A and Party B. The partnership will enhance the delivery of healthcare services, improve patient outcomes, and achieve operational efficiencies in the parties' areas of operation. Further, the parties will bolster their research capabilities by entering this agreement. The parties commit to combining resources, expertise, and facilities to achieve mutual benefits.

Scope of Partnership

Specific Services and Resources to be Shared

Party A and Party B agree to collaborate to provide healthcare services within their respective areas of expertise to improve overall health outcomes. To fulfill the set forth objectives, parties shall share the use of facilities, medical equipment, clinical research, and technology. Parties agree to draft a mutually beneficial allocation and resource utilization framework.

Both parties acknowledge and commit to exploring clinical support services delineated in the resource utilization framework. The parties may engage in collaborative medical research and educational programs to advance medical knowledge. Any research or educational initiatives shall comply with all necessary institutional reviews, board approvals, and applicable laws.

Duration of the Partnership

The term of this partnership shall begin on (Effective Date) and continue for (Contract Duration). This partnership may be renewed for subsequent terms upon the mutual agreement of both parties in writing.

Termination Conditions and Procedures

Either party may terminate this contract before the expiry of its term with prior written notice (Notice Period) in advance. In the event of termination, the initiating party shall cooperate in good faith to facilitate an orderly transition of shared services and patient care responsibilities to minimize service disruption.

Either party may issue a written non-renewal notice (Notice Period) before the end of the agreement's term. In such a case, the initiating party commits to fulfilling their responsibility until the agreed-upon period lapses.

Non-Compete and Confidentiality Clauses

Parties commit to maintaining strict confidentiality on all protected medical information, including but not limited to patient medical records and protected non-medical records under (Name of State Regulatory Agency) laws. Further to this, Party A and Party B agree not to directly engage in competing business and clinical activities during the partnership term. The non-compete clause remains valid for (Validity Period) after contract termination or non-renewal.

Parties' Responsibilities and Obligations

Responsibilities of Party A [Party A.Company]

This section should include a comprehensive list of all the services and associated responsibilities of the healthcare facility. This can include functions such as laboratory testing, inpatient or outpatient medical care, and specialty services. Having performance monitoring and evaluation procedures in this section is also helpful. Complete the section below with relevant information.

Party A takes responsibility for the following services as stated below:

(Add your service and appropriate details here)
(Add your service and appropriate details here)
(Add your service and appropriate details here)

Responsibilities of Party B [Party B.Company]

This section should include a comprehensive list of the services and associated responsibilities of the second healthcare facility. For a fruitful relationship, describe the flow of communication in this section. This can include naming a contact person to facilitate requests between Party A and Party B. On top of this, outline the standards that the health facility shall follow while performing collaborative functions. Complete the section below with relevant information.

Party B takes responsibility for the following services as stated below:

(Add your service and appropriate details here)
(Add your service and appropriate details here)
(Add your service and appropriate details here)

Financial Arrangements

Allocation of Costs and Expenses

Parties shall be responsible for bearing costs for services rendered in their respective health facilities pertaining to this partnership. Parties commit to equitably sharing joint costs and expenses necessary for the success of this partnership. The shared costs include but are not limited to:

a. Joint marketing and advertising efforts.

b. Shared administrative and management expenses.

c. Upgrades to shared facilities or equipment.

The parties shall mutually agree upon a cost allocation methodology, which shall be documented in writing. This methodology shall outline the process for determining the fair allocation of shared costs and expenses.

Revenue Sharing and Profit Distribution

The parties shall agree on a revenue-sharing formula that fairly distributes the combined revenues generated from the partnership. The formula shall consider factors such as services provided, patient volume, and contribution to shared resources.

In the event of a revenue-sharing disagreement, parties agree to engage in good-faith negotiations. If the parties fail to reach an agreeable solution, the dispute will be settled following the laws of the governing jurisdiction agreed to when entering this contract.

Handling of Insurance and Liabilities

Parties shall maintain individual insurance coverage for their healthcare facilities during the duration of this contract. The obtained insurance shall cover general liability, professional liability, and any other coverage prescribed by jurisdictional laws.

The parties acknowledge that certain liabilities may arise from shared activities or resources. In such cases, parties shall share the responsibility based on the agreed-upon methodology.

Billing and Payment Procedures

The parties shall establish a clear and transparent billing process for the services rendered under the partnership. It's the responsibility of each party to submit invoices promptly and accurately based on the established schedule. Parties shall also submit required supporting documentation when invoicing.

Invoices for payments shall be submitted (Insert Invoicing Schedule, monthly, weekly, annually, etc.), and payments for invoices shall be made within (Insert Payment Duration) of invoicing. Payments delayed by (Insert Timeframe) shall be subject to a (Insert figure or percentage) late fee.

It's the individual responsibility of the involved parties to maintain accurate and complete financial records during the duration of this agreement. Parties shall avail these records for audit, inspection, or any other reasonable request upon receipt of a written request.

Indemnification and Liability

Indemnification of Each Party by the Other

Party A (Hospital Facility 1) agrees to indemnify and hold harmless Party B (Hospital Facility 2), its officers, directors, employees, agents, and representatives (collectively referred to as "Indemnitees") from and against any and all claims of damages, liabilities, losses, expenses, and costs (including reasonable attorney's fees) arising out of or related to:

i. Any negligent acts or omissions of Party A, its employees, agents, or representatives in performing its obligations under this partnership agreement.

ii. Any breach of representation, warranty, or covenant made by Party A under this agreement.

iii. Any violation of applicable federal, state, or local laws, regulations, or standards by Party A or its personnel in connection with the services provided under this partnership agreement.

Party B (Hospital Facility 2) reciprocates and agrees to indemnify and hold harmless Party A, its officers, directors, employees, agents, and representatives (Indemnitees), from and against any and all claims, damages, liabilities, losses, expenses, and costs (including reasonable attorney's fees) arising out of or related to:

i. Any negligent acts or omissions of Party B, its employees, agents, or representatives in performing its obligations under this partnership agreement.

ii. Any breach of representation, warranty, or covenant made by Party B under this agreement.

iii. Any violation of applicable federal, state, or local laws, regulations, or standards by Party B or its personnel in connection with the services provided under this partnership agreement.

Notice and Defense

The party seeking indemnification (the "Indemnified Party") shall notify the indemnifying party (the "Indemnifying Party") in advance writing of any claim, suit, or proceeding for which indemnification may be sought. Failure to provide such notice shall not cancel the indemnification obligation from the indemnifying party, except if the lack of advance notification already prejudices the indemnifying party.

The indemnifying party bears the right to assume defense in case of a claim, suit, or proceeding with counsel of its choice and to be informed of all material developments in such an occurrence. The indemnifying party shall not settle any claim, suit, or proceeding without prior written consent from the indemnified party. The indemnified can not unreasonably withhold or delay consent for such a settlement.

Limitation of Liability

Notwithstanding any provision in this agreement, indemnification shall not be extended for cases of willful misconduct or gross negligence. Indemnification will also not be provided for any actions or omissions outside the scope of the services and responsibilities delegated in this agreement.

Governing Law

This Agreement shall be subject to the laws of the state of [Party A.State].

IN WITNESS WHEREOF, the undersigned have executed this Agreement on the date first written above.

Signature

MM / DD / YYYY

[Party A.FirstName][Party A.LastName]

[Party A.Title] at [Party A.Company]

[Party A.StreetAddress][Party A.City][Party A.State][Party A.PostalCode]

Signature

MM / DD / YYYY

[Party B.FirstName][Party B.LastName]

[Party B.Title] at [Party B.Company]

[Party B.StreetAddress][Party B.City][Party B.State][Party B.PostalCode]

Useful resources

FAQ: Hospital Agreement Template

A hospital agreement is a legally binding document healthcare facilities sign to guide their relationship. Usually, a healthcare agreement outlines the scope of services to be shared and other collaborative aspects, including personnel responsibilities and financial arrangements. It follows the legal and regulatory standards of the jurisdiction(s) where the health facilities are located to facilitate seamless engagement.

Having a contract that follows the healthcare facility partnership format is important for the following reasons:

It defines the responsibilities and obligations of the involved parties.
It builds the financial framework for the partnership.
Ensure compliance with legal and regulatory standards.
This type of contract describes partnership termination and renewal procedures.
It lays the basis for conflict resolution and renegotiation.
It also enhances accountability and protects the partners against risk.

You’ll find the following sections in a free hospital agreement template:

The purpose of the contract involved parties and governing laws.
The scope of the hospital partnership.
A responsibilities clause listing each party’s obligations to the other for productive engagement.
Both parties agreed upon the financial arrangement.
A liability and indemnification section.

Yes. You must meet legal and regulatory requirements when entering a hospital agreement, including the following:

The Health Insurance Portability and Accountability Act (HIPAA) of 1996.
The Social Security Act governing funding, including insurance schemes such as Medicaid.
Compliance with the Anti-Kickback Statute to prevent health facilities from making financially motivated medical decisions.

There are more legal and regulatory requirements that hospitals must meet. We recommend checking with state and federal organizations when entering an agreement.