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Physician Services Agreement

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PHYSICIAN SERVICES AGREEMENT

This Physician Services Agreement ("Agreement") is made as of by and between Physician Name: (the "Physician") and Health Care Entity Name: (the "Entity").

RECITALS

WHEREAS, Entity operates a health care facility and desires to retain Physician to provide professional medical services in the specialty of ;

WHEREAS, Physician represents that Physician holds an active and unrestricted license to practice medicine in the state(s) in which services will be performed and maintains the necessary hospital privileges and credentials; and

WHEREAS, the parties desire to set forth the terms and conditions under which Physician will provide such services.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the parties agree as follows:

1. SERVICES

1.1 Scope. Physician shall provide professional services consistent with Physician's training and licensure, including but not limited to medical evaluation, diagnosis, treatment, consultation, on-call coverage, and participation in multidisciplinary care as reasonably requested by Entity (the "Services"). Physician shall perform the Services at the following primary location(s): .

1.2 Standard of Care. Physician agrees to perform all Services in accordance with the standard of care applicable to similarly situated practitioners and in compliance with all applicable federal and state laws, regulations, and professional standards.

2. TERM

2.1 Term. The term of this Agreement shall commence on and shall continue until unless earlier terminated in accordance with Section 9.

2.2 Renewal. This Agreement shall automatically renew for successive terms unless either party delivers written notice of non-renewal at least days prior to the end of the then-current term.

3. COMPENSATION

3.1 Fee. Entity shall pay Physician for Services as follows: Base compensation per month or per session (as applicable): .

3.2 Payment Terms. All fees shall be payable within days of invoice. Physician shall submit invoices in the form and with the supporting documentation reasonably required by Entity. Payments may be withheld for disputed charges until resolution.

3.3 Withholding. Physician acknowledges that Entity may be required to withhold amounts as required by law; except as provided by statute, Physician shall be solely responsible for any taxes arising from sums paid under this Agreement.

4. INDEPENDENT CONTRACTOR

Physician shall perform Services as an independent contractor and not as an employee, agent, partner or joint venturer of Entity. Physician shall be solely responsible for the manner and means of performing the Services, subject to the professional standards and reasonable policies of Entity. Nothing in this Agreement shall be construed to confer employment benefits on Physician.

5. LICENSES, CREDENTIALS AND PRIVILEGES

5.1 Licensure. Physician represents and warrants that Physician holds and will maintain during the Term an active, unrestricted license to practice medicine in the state(s) in which Services are performed. License number: Issuing state(s): .

5.2 Hospital Privileges. Physician shall maintain such hospital privileges and credentials as reasonably required to provide the Services. Physician shall promptly notify Entity of any suspension, restriction, or loss of privileges or licensure.

6. CONFIDENTIALITY

Physician shall maintain the confidentiality of all patient information, proprietary Business information of Entity, and other confidential material and shall not disclose such information except as required to perform the Services or as required by law. Upon termination, Physician shall return all confidential documents and materials to Entity.

7. PATIENT RECORDS; MEDICAL CHARTS

All medical charts, patient records and related documentation created in the course of providing Services shall be the property of Entity. Physician may retain copies of records as required by law or professional obligations but shall not remove originals without prior written consent.

8. INSURANCE AND INDEMNIFICATION

8.1 Insurance. During the Term, Physician shall maintain professional liability insurance with limits of not less than per claim and aggregate, or such other amounts as required by Entity.

8.2 Indemnification. Physician shall indemnify, defend and hold harmless Entity and its directors, officers and employees from and against any claims, liabilities, losses or expenses (including reasonable attorneys' fees) arising out of Physician's negligent acts, omissions or willful misconduct in the performance of Services. Entity shall indemnify Physician for liabilities arising from Entity's gross negligence or willful misconduct.

9. TERMINATION

9.1 For Cause. Either party may terminate this Agreement for cause upon written notice if the other party materially breaches any provision and fails to cure the breach within days after receipt of written notice specifying the breach.

9.2 Immediate Termination. Entity may terminate immediately upon written notice for reasons that include loss or suspension of Physician's license, suspension or revocation of hospital privileges, conviction of a felony, or conduct that poses an imminent risk to patient safety.

10. REPRESENTATIONS AND WARRANTIES

Each party represents and warrants that it has full corporate or individual power and authority to enter into this Agreement, and that the person executing this Agreement on its behalf is duly authorized to do so.

11. COMPLIANCE WITH LAWS

Physician shall comply with all applicable federal and state laws, rules and regulations governing professional licensure, billing, prescribing, controlled substances, privacy, and the provision of health care services.

12. NOTICES

All notices shall be in writing and shall be deemed given when delivered in person, by nationally recognized overnight courier, or three business days after deposit in the U.S. mail, postage prepaid, addressed to the addresses set forth above or to such other address as either party may designate by written notice.

13. AMENDMENT; WAIVER; COUNTERPARTS

This Agreement may be amended only by a written instrument signed by both parties. No failure or delay by either party in exercising any right shall operate as a waiver. This Agreement may be executed in counterparts, each of which shall constitute an original.

14. ENTIRE AGREEMENT; SEVERABILITY; GOVERNING LAW

14.1 Entire Agreement. This Agreement, together with any exhibits and schedules expressly incorporated, constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior agreements and understandings relating thereto.

14.2 Severability. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall continue in full force and effect.

14.3 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the state of without regard to conflict of laws principles.

15. MISCELLANEOUS PROVISIONS

15.1 Assignment. Neither party may assign or delegate this Agreement without the prior written consent of the other party, except that Entity may assign to a successor by merger or sale of substantially all of its assets.

15.2 Remedies. Remedies provided in this Agreement are cumulative and in addition to any other remedies available at law or equity.

SCHEDULED DETAILS (OPTIONAL)

Physician

Print Name:

By:

Date:

Health Care Entity

Print Name:

By:

Date:

Enter text✕

What the Physician Services Agreement Is and When It Applies

A Physician Services Agreement is a written contract that sets the terms for professional services provided by a physician or group to a practice, hospital, clinic, or managed care organization. It typically defines scope of services, compensation, scheduling, credentialing requirements, termination rights, and liability allocation. For U.S. transactions, the agreement should address compliance with applicable federal and state law, including ESIGN/UETA considerations for electronic execution and HIPAA requirements when protected health information is involved. Clear provisions reduce disputes and clarify operational expectations for both parties.

Why a Clear Physician Services Agreement Matters

A precise agreement protects clinical and business interests by defining duties, payment terms, dispute mechanisms, and compliance obligations. It limits ambiguity about on-call coverage, billing responsibilities, termination notice, and indemnity, which reduces operational and legal risk for both the physician and the contracting organization.

Why a Clear Physician Services Agreement Matters

Who Typically Uses This Agreement and Why

Common users include private practices, hospitals, medical groups, independent physicians, and health systems seeking to formalize service relationships.

Use by these groups streamlines onboarding, supports credentialing audits, and documents compliance steps required under healthcare regulations.

Step-by-Step: How to Complete the Agreement

Follow this sequence to collect required data, review legal terms, and execute the contract efficiently.

  • 01
    Gather Information: Assemble NPI, license, entity details, and tax ID before drafting.
  • 02
    Draft Key Terms: Define scope, compensation, and coverage obligations clearly.
  • 03
    Review Compliance: Confirm HIPAA, Stark/anti-kickback, and state licensing requirements.
  • 04
    Execute Signatures: Obtain signatures from authorized signatories and retain audit trail.

Essential Sections to Include in the Agreement

A complete Physician Services Agreement addresses six core areas that directly impact operational and legal outcomes.

Scope of Services

Describe clinical duties, on-call expectations, patient population, and any administrative responsibilities tied to the physician’s role to avoid scope creep.

Compensation

Detail base pay, productivity incentives, bonuses, expense reimbursement, billing splits, and timing of payments with clear calculation examples.

Term and Termination

State the contract length, renewal mechanics, notice periods, and cause/for-cause termination processes including post-termination obligations.

Credentialing and Privileges

Assign responsibilities and timelines for hospital credentialing, malpractice coverage requirements, and consequences for credentialing denial.

Liability and Indemnity

Allocate professional liability and indemnity obligations and specify required malpractice insurance limits and notice procedures.

Regulatory Compliance

Include representations about Stark law, anti-kickback compliance, HIPAA obligations, and cooperation with audits or investigations.

Core Data Elements Required

Physician Identifier: NPI and license
Entity Information: Legal name and EIN
Contact Information: Address, phone, email
Compensation Detail: Rates and schedule
Insurance Coverage: Malpractice limits
Effective Dates: Start and end dates

Immediate Risks of an Incomplete Agreement

Incorrect Tax Info: Backup withholding
Missing Credentials: Denied privileges
Vague Compensation: Payment disputes
Noncompliance: Regulatory fines
Improper Signatory: Enforceability risk
No Audit Trail: Proving consent

Common Preparation Mistakes to Avoid

  • Leaving compensation formulas ambiguous, which leads to differing interpretations and payment disputes that are costly to resolve.
  • Failing to specify credentialing timelines or fallback duties when credentialing is delayed, causing operational gaps and patient-care issues.
  • Omitting HIPAA-required language or a business associate agreement when provider access involves PHI, increasing compliance exposure.
  • Using outdated termination or non-compete language that conflicts with current state law, risking unenforceability or litigation.

How Electronic Execution and eSubmission Typically Work

Electronic signing follows a standardized workflow that preserves intent, attribution, and retention required by ESIGN and UETA.

  • Upload Document: Prepare final PDF or DOCX for signatures.
  • Place Fields: Add signature, date, and initial fields where needed.
  • Authenticate Signer: Use email, SMS, or stronger methods for identity.
  • Capture Audit Trail: Record timestamps, IPs, and completion certificates.

Configuring an Online Signing Workflow

Set up fields and authentication to match the agreement's legal and operational needs.

Field Configuration
Signature Field Required; capture date and signer name
Initials Field Optional; use for page acknowledgements
Authentication Email or SMS code; use stronger methods if required
Audit Trail Enable full action log and PDF certificate

Technical Considerations for eSigning and Distribution

Confirm file formats, signer authentication, and integration needs before sending the agreement for signature.

  • File Types: PDF and DOCX supported
  • Integrations: Connects with EHR and CRM
  • Authentication: Email, SMS, or two-factor

Ensure the chosen platform supports HIPAA (BAA available), audit trails, and your preferred storage or SSO integrations prior to execution.

Timelines and Deadlines to Build Into the Agreement

Include explicit dates and notice periods to prevent disputes and to coordinate credentialing, coverage, and payment schedules.

Effective Date:

Date when obligations and rights begin; use MM/DD/YYYY format

Termination Notice:

Standard 30–90 days depending on role and risk allocation

Payment Schedule:

Specify monthly, biweekly, or per-visit timing and late fees

Credentialing Timeline:

Assign responsibility and expected completion window

Insurance Proof:

Provide current certificate before start date

Key Contract Milestones from Negotiation to Renewal

Track four sequential milestones to keep the agreement on schedule and compliant throughout its lifecycle.

01

Negotiation Finalized

Terms agreed and draft prepared for internal review

02

Internal Approvals

Legal, compliance, and finance sign-off obtained

03

Execution

Signatures collected and audit trail retained

04

Renewal or Close-out

Assess performance and either renew or formally terminate

Frequently Asked Questions About Execution and Compliance

Answers to common questions about signing, notarization, retention, and enforceability for Physician Services Agreements.


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eSignature Provider Comparison for Physician Services Agreement Workflows

Compare core price and capability dimensions to choose a platform that supports HIPAA, bulk sending, and audit trails needed for physician contracting.

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 Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies
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