Healthcare facilities such as behavioral health practices, outpatient surgery centers, and med spas enter into medical director agreements when the facility needs outside physician oversight in order to deliver its clinical services. Both the physician and healthcare facility benefit when a medical director agreement is well drafted. Provisions that make for a well drafted agreement include stating the specific protocols and procedures that must be followed in order to ensure that the standard of care is met, how and when the agreement can be terminated, clear statements about physician compensation, and a comprehensive description of how a liability will be handled should one occur. A well drafted medical agreement protects the physician’s medical license, protects the healthcare facility’s financial interests, and reduces the risk of a lawsuit being filed against either party.
Prior to entering into a medical director agreement, the physician needs to honestly evaluate whether they have the expertise required to serve as the medical director. Questions that physicians should ask themselves include are they properly trained and have they performed the services that they are agreeing to supervise? Also, does the physician have the time needed to perform good faith exams, conduct periodic audits, and be available when patient issues arise? Medical directors need to be certain that they are positioned to monitor the quality of care delivered at the facility and can be available when patient care concerns or questions arise.
As for the healthcare facility, it needs to be sure that it is willing to relegate complete decision making over clinical operations to the medical director even when the director’s decisions may result in a loss of profit for the healthcare facility. Another important consideration is whether the healthcare facility is committed to communicating with the medical director even when a patient complaint reflects poorly on the facility.
Engaging in the tough conversations at the onset and smoothing out wrinkles before the agreement is executed lends itself to creating a long-term and successful relationship between the physician and the healthcare facility that ultimately benefits both parties and the patients that they care for.
