How Important are Medical Transcription Contracts in Your Business?
Medical transcription contract payments are made for a set amount of work, usually covering a set period of time. A transcriptionist may be contracted to work for an organization at a set rate. The contract may agree to a particular rate per line of information transcribed, hours worked, or for the completion of a set job. Usually it states the number of characters per line (often 65). There are cases where a contract may not be beneficial to you. It all depends on how you feel about things. • Those who like them feel that they offer “security” • Predetermined pick-up/delivery schedules • Work flow • Rates are set • Feel like the work is “locked up” or “guaranteed” to them • Cash flow is another pro for contracts. The contracts normally have a 30-day clause for cancellation by either party. If a contract is cancelled this gives them 30 days to find replacement work and hence retain their cash flow. Cons of Medical Transcription Contracts • Some medical transcriptionists believe that if things don’t work out and the contract is canceled, they would prefer not to have to work for someone and have the tension that this situation can create. • Contracts can make some people feel nervous and obligated. • Medical transcription contracts can be broken and it is unlikely that a medical transcriptionist would sue anyone for a broken contract. • No contract means that if you received a great offer for lots more money, you have the freedom to be able to accept the offer, giving consideration to the original contractor and helping them to find a replacement. • No contract means you have the flexibility to fit any work or family stress issues around your work. • If you suffer poor health you also have the flexibility to fit health issues in around your work without being pressured as you may with a contract.
It is wise to from the start allow for this situation in your medical transcription contracts, perhaps having a substantial “finders fee” or similar, that is paid to the main contractor by the client. The lump sum payment can appear huge at first look. The client has the advantage in knowing how this person fits into their organization and how productive they are. Also, when they have the contractor employed or contracting directly for them their costs are reduced so over a period of time this is a win/win situation. Some contractors may just accept the work and not worry about the agent (main contractor). This is not advised as agencies do communicate and if you want to work for one in the future this will probably create difficulties. It is also an unethical situation and now what we would advise. For some time I worked in temporary personnel placement. We operated this system and clients were happy to pay for a worker they knew produced the results. My experience was that the set up worked for all parties and as long as it is in the original contract, I would recommend it so all parties know where they stand. Employees are those workers you employ in your business. Generally an amount is withheld from payments you make to them and sent to the tax office. Contractors are those workers who are self-employed and have a contract with you to provide services. Contractors usually cater for their own income tax liability.
• A payer has a right to specify how a medical transcription contracts service is to be performed. However, such control must be specified under the terms of the contract , or the contractor is free to exercise their discretion. • A contractor performs services as specified in a contract with the payer and provides additional services only by agreement. • Payment depends on the performance of the contract services. • A contractor bears the legal risk in respect of the work. They have the potential to make a profit or loss, and must remedy any defective work at their own expense. • Generally a contractor provides their own tools and equipment. • Unless otherwise specified in the contract, a contractor can subcontract or delegate the work. - You just get to do the work without worrying about time looking after the clients. - You do not need to worry about arranging substitutes for your vacations. - You do not need to worry about arranging substitutes for sick time off. - You get a higher wage rate. - You get to make all the decisions that affect your work. - You choose who you want your working relationships with and can build the rapport with those people. When looking at
medical transcription contracts
make sure you have had some advise from a specialist in this area!
Reutrn from MT Contracts, to Medical Transcription Business
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