Contract Negotiation Points

The first consideration is the availability of the consultant or attorney. Were you able to speak to someone right away? If not, was your phone call returned promptly? When making the initial call to a firm, ask if the phone consultation is free. If not, you might be surprised with a bill down the road. However, most firms realize the marketing potential of providing a free initial assessment. How potential clients are treated during initial encounters can serve as a barometer as to the tone of the professional relationship. Some consultants or attorneys may be so overly-subscribed that they will not have time to give your practice the attention it deserves. Find out if the consultant or attorney with whom you originally spoke will be the person assigned to work with you, or if your project will be assigned to someone else within the firm (for example, a less-experienced associate). It is not necessarily a bad thing if the majority of work on your project is handled by someone else. The benefit is that you may receive quality work at less cost. However, ask the firm to disclose this up front, so there are no disagreements as the project progresses.

Describe your situation to the consultant or attorney. Make certain that he or she understands what type of results you expect. The consultant or attorney should ask probing questions and help the potential client clearly and accurately describe the state of affairs. In order to have a successful relationship with the consultant, and thus, a favorable outcome, clear, accurate communication is essential.

Does the individual or firm have experience in working with family physicians? If so, in what capacity? Has the firm ever worked with a practice configuration similar to yours? Has the firm ever addressed the problem you are presenting? (In order to be listed in the FP Assist, the consulting and law firms are required to have experience with family physicians.)

How does the consulting or law firm charge for its services? Some firms bill by the hour; others will quote clients a flat rate for a particular service (e.g. contract review or practice valuation). How does the firm expect to be paid? On retainer? In one lump sum? Are payment plans available? Is the client required to make a down payment with balance due at the conclusion of the engagement? The hourly rates charged by firms vary widely.

This is the time to assess those “hidden costs” that may surprise you after the fact. If the consultant is going to have to travel to your practice, what expenses will be billed to you? For example, if airfare is covered, does this mean coach, first class, stand-by? In addition, the practice can expect to be billed for lodging, meals, ground transportation, and incidentals, such as long-distance phone calls. You also need to have the consultant clarify what follow-up services are billable. For example, if the consultant is required to return to the practice for additional staff training, is it an additional charge or is it covered in the initial fee? Find out the same information for telephone consultations and written reports.

Have the consultant or attorney provide you with references, preferably from family medicine practices or other primary care practices that have had the types of services performed that you are requesting. Refusal to provide appropriate (or any) references is definitely a red flag. (References from family physicians are mandatory for firms listed in the FP Assist.)

Does the consulting firm have a vested interest in a particular product, such as a software program? If it does, that should not necessarily disqualify it. However, if the firm is aggressive about promoting its particular product, ask that it provide you with names of other comparable products, so you can make an informed choice.