HFMA Test 7: Contracts questions with correct answers

Purpose of Contracts - Answer Purpose Contracts will be used to define terms between two or more parties for the provision of a service or product. In health care, contracts are used for: Health plan or payer agreements. Construction projects. Collection services. Maintenance on equipment. Leasing space. Employment of contracted staff, and a variety of other items For a contract to be valid, individual must do three things - Answer Valid Contract For a contract to be valid, two (or more) individuals must: 1. Agree to the provisions of the contract, 2. Agree to the price (or promise), 3. Be legally competent or authorized to enter into the contract, and the contract must be for services and products that are legal Proposals vs Contracts - Answer Proposals vs Contracts Contracts may begin as proposals or offers to provide services. However, the proposal is not the contract because it often lacks the many protective boilerplate clauses that we will discuss later in this course. Proposals may become attachments to contracts as an exhibit, but the signature of both parties is required for written