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Healthcare Managed Service Agreement

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HEALTHCARE MANAGED SERVICE AGREEMENT

This Healthcare Managed Service Agreement (Agreement) is entered into as of , (Effective Date), by and between the parties below.

Parties and Contact Information


Recitals

WHEREAS, Client operates a healthcare practice and requires managed information technology, security, and data services that may involve Protected Health Information (PHI); and

WHEREAS, Provider is in the business of providing managed IT and security services and represents it has the experience, personnel, and safeguards necessary to perform such services in a manner compliant with applicable federal and state law, including requirements applicable to PHI; and

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows.

1. Definitions

For purposes of this Agreement: "PHI" means Protected Health Information as defined by applicable law; "Services" means the managed services described in Section 2; "Confidential Information" includes PHI and any nonpublic business information disclosed by either party.

2. Scope of Services

Provider shall perform the Services described below and in any Statement of Work (SOW) executed by the parties. The Services shall include, at minimum, the items listed and any additional tasks set forth in an attached SOW.

3. Service Levels and Performance

Provider shall meet the following service levels. Failure to meet materially defined service levels shall entitle Client to the remedies specified below.

Service credits and remedies for failure to meet service levels will be set forth in the SOW and, absent specific terms, Client's sole remedy for SLA failure shall be a proportional credit against fees paid for the affected month.

4. HIPAA, Privacy and Security

The parties acknowledge that Provider may create, receive, maintain or transmit PHI in the performance of Services. Provider shall comply with all applicable federal and state laws governing PHI and shall implement and maintain administrative, physical and technical safeguards appropriate to the size and complexity of Provider's operations.

Provider agrees to: (a) limit use and disclosure of PHI to the minimum necessary to perform the Services; (b) implement access controls, encryption at rest and in transit as appropriate; (c) maintain logging and monitoring; and (d) cooperate with Client to support Client's HIPAA obligations. A separate Business Associate Agreement is incorporated by reference and shall govern specific PHI obligations.

5. Access to Data, Ownership and Backups

Client retains all right, title and interest in and to Client Data, including PHI. Provider's access to Client Data is limited to performance of the Services. Provider shall implement routine backup procedures and restore capabilities.

Upon termination, Provider shall, at Client's election, return all Client Data in a mutually agreed standard electronic format and securely delete residual copies within a reasonable period.

6. Fees and Payment

7. Term and Termination

The initial term shall commence on the Effective Date and continue for , unless earlier terminated in accordance with this Agreement. The Agreement shall automatically renew for successive terms unless either party provides notice of non-renewal at least prior to the end of the then-current term.

Either party may terminate for material breach if the breaching party fails to cure within 30 days after written notice. Termination for insolvency or unlawful conduct shall be immediate.

8. Confidentiality and Data Ownership

Each party shall protect Confidential Information with at least the same degree of care it uses to protect its own confidential information, but no less than reasonable care. Provider acknowledges that PHI and Client Data are owned by Client and will be used only to provide the Services.

9. Indemnification and Insurance

Each party shall indemnify the other from third-party claims arising from its breach of this Agreement, negligence or willful misconduct. Provider shall maintain and furnish evidence of commercial general liability, professional liability and cyber liability insurance in reasonable limits appropriate to the Services.

10. Limitation of Liability

Except for liability arising from breach of confidentiality, willful misconduct or Provider's failure to comply with PHI obligations, neither party shall be liable for consequential, punitive or special damages. Provider's aggregate liability for direct damages shall not exceed the total fees paid by Client to Provider under this Agreement in the twelve months preceding the claim.

11. Audit Rights and Inspections

Client shall have the right to audit Provider's compliance with applicable PHI safeguards once annually with reasonable notice. Audits shall be conducted during normal business hours and in a manner that does not unreasonably disrupt Provider's operations.

12. Governing Law and Dispute Resolution

This Agreement shall be governed by the laws of the state set forth below, without regard to choice-of-law principles. The parties shall first attempt to resolve disputes in good faith. If unresolved, disputes shall be resolved by the forum selected below.

13. Notices

All notices required under this Agreement shall be in writing and delivered to the addresses listed below (or such other addresses as the parties may designate in writing).

14. Authorization and Expiration

Client authorizes Provider to access and maintain systems and data as necessary to perform Services. This authorization shall expire on: unless extended in writing.

15. Miscellaneous

This Agreement, together with any SOW and incorporated Business Associate Agreement, constitutes the entire agreement between the parties. Amendments must be in writing and executed by authorized representatives. If any provision is found unenforceable, the remaining provisions remain in full force.

Acknowledgment of HIPAA Obligations

By executing this Agreement, Provider acknowledges its obligations with respect to PHI and agrees to comply with all applicable privacy, security and breach notification obligations. Client acknowledges that it has authority to permit Provider access to the data necessary to perform Services.

Client — Printed Name:

By:

Title:

Date:

Provider — Printed Name:

By:

Title:

Date:

Enter text✕

What the Healthcare Managed Service Agreement Covers

A Healthcare Managed Service Agreement is a written contract that defines services, responsibilities, security controls, service levels, and payment terms when a vendor provides managed IT, clinical systems, or administrative services to a healthcare organization. It commonly includes a HIPAA Business Associate Agreement (BAA), data protection requirements, incident response obligations, performance metrics (SLAs), and termination and transition provisions to protect patient data and ensure continuity of care.

Why this agreement matters for healthcare organizations

A clear Healthcare Managed Service Agreement reduces operational risk, preserves patient privacy, and documents regulatory obligations such as HIPAA. It provides predictable SLAs, assigns responsibilities for security and breach notification, and defines liabilities and remedies if services fail or data protections lapse.

Why this agreement matters for healthcare organizations

Who commonly prepares and signs these agreements

Healthcare Managed Service Agreements are used across provider organizations, payers, and vendors to align operational and compliance expectations before services begin.

  • Hospitals and health systems: procurement, IT, and compliance teams negotiate SLAs and BAAs to protect PHI and uptime.
  • Specialty clinics and physician groups: smaller organizations use these agreements to access managed EHR, backup, and security services reliably.
  • Managed service providers and vendors: legal and operations teams define service scope, data handling, and indemnities before onboarding.

Well-drafted agreements reduce the need for ad hoc negotiations during incidents and support regulatory audits and contractual audits.

Who can sign on behalf of each party

Authorized Signatory

An individual with written authority (VP Procurement, authorized contracting officer) must sign for the healthcare organization; authority should be documented in internal delegation records to avoid challenges during enforcement or audits.

Vendor Officer

The vendor should be represented by an officer or delegated contract manager with the power to bind the company, and the agreement should require proof of signing authority on request to validate commitments.

Core contract elements to include in the agreement

A professional Healthcare Managed Service Agreement organizes operational, security, legal, and financial terms so both parties understand obligations and remedies.

Scope of Services

Describe services in concrete terms (software names, monitoring, backups), deliverables, and any excluded activities to prevent scope creep and billing disputes.

Service Levels

Define measurable SLAs (uptime %, response and resolution times), credits for missed targets, escalation paths, and reporting cadence for SLA performance.

Security & Compliance

Specify technical and administrative safeguards, encryption standards, audit rights, and required compliance frameworks such as HIPAA and 21 CFR Part 11 where applicable.

Data Handling

Address PHI storage, access controls, data segregation, backup and restore procedures, and ownership/return of data on termination.

Fees & Payment

Set pricing, billing intervals, invoicing details, change-order procedures, and consequences for late payment, including whether fees are subject to audit.

Termination & Transition

Include termination for cause/convenience, data return or secure destruction, transition assistance, and timelines for handing off systems and records.

Required technical and compliance details

Encryption: TLS 1.2/1.3; AES-256 at rest
Audit Trail: Detailed logs, timestamps, and event history
Certifications: SOC 2 Type II; ISO 27001 where required
HIPAA: BAA required for PHI handling
21 CFR Part 11: Applicable for regulated clinical records
Data Residency: Specify storage geography and controls

Step-by-step: completing and executing this agreement

Follow a structured sequence to draft, review, approve, and execute the contract to ensure compliance and operational readiness.

  • 01
    Draft Terms: Populate scope, SLAs, security, and fees clearly.
  • 02
    Legal Review: Have counsel validate liability, indemnity, and HIPAA obligations.
  • 03
    Operational Sign-off: IT and security approve technical exhibits and onboarding plans.
  • 04
    Execution: All authorized signatories sign and date the final document.

How to configure the online signing workflow

Set up an e-sign workflow that preserves audit trails, enforces signer identity, and stores the final executed agreement securely.

Field Configuration
Authentication Method Email link, SMS code, or two-factor
Signature Order Sequential or parallel signer routing
Required Attachments Attach BAA and exhibits before signing
Retention Settings Automatic PDF archiving and versioning

Typical submission and approval routing

A predictable routing flow helps ensure timely execution and correct authority validation.

  • Upload Document: Send final PDF to the signing platform
  • Place Fields: Add signature, date, and initial fields
  • Assign Signers: Enter signer names, titles, and emails
  • Complete Signing: Platform captures audit trail and stores copy

Distribution channels and technical integrations

Choose distribution and storage methods that meet security and workflow needs.

  • Email and Links: Standard secure email invitations
  • API Integrations: Connect with EHR or ERP systems
  • Cloud Storage: Archive in Google Drive or Box

Ensure integrations preserve audit logs and comply with retention policies and access controls.

Typical timelines, deadlines, and processing expectations

Define key dates and response targets in the agreement to set expectations for onboarding, SLA reporting, renewals, and audits.

Implementation Target Date:

MM/DD/YYYY or X days after execution

SLA Reporting Frequency:

Monthly or quarterly reports due

Renewal Notice:

60–90 days prior to term end

Invoice Payment Terms:

Net 30 or negotiated terms

Breach Notification:

Notify within 72 hours of confirmed breach

Key milestones from negotiation to steady state

Track milestone stages to coordinate legal, technical, and vendor onboarding activities.

01

Negotiation Complete

Finalize commercial and legal terms

02

Contract Execution

All authorized parties sign

03

Implementation Window

Deploy systems and migrate data

04

Ongoing Support

Regular SLA monitoring and reviews

Common drafting and execution mistakes to avoid

  • Vague scope descriptions that lead to disputes and unplanned charges during onboarding.
  • Failing to attach or sign a BAA, leaving PHI protections and responsibilities unclear for the vendor.
  • Not defining measurable SLAs or remedies, which reduces the ability to enforce uptime and response commitments.
  • Relying on verbal assurances for data handling instead of documenting encryption, logging, and access control obligations.

Potential penalties and contract risks

HIPAA Fines: Civil and monetary penalties
Termination: Contract cancellation and transition costs
Indemnity Claims: Vendor or client financial exposure
Breach Notification: Regulatory and public disclosure
Operational Loss: Downtime and patient-care impact
Reputational Harm: Loss of trust and partner confidence

eSignature vendor pricing and feature snapshot for agreement execution

Compare baseline pricing and key capabilities relevant for Healthcare Managed Service Agreement workflows; signNow is listed first per platform data.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Free trial available Free trial available Free trial available Free trial available
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Common questions about executing a Healthcare Managed Service Agreement

Answers to frequent practical and legal questions about signing, notarization, HIPAA requirements, and amendments.


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