Terms a strong agreement covers
- Scope of services: the specific services and settings the director oversees.
- Protocols and orders: who writes them, who signs them, and who owns them.
- Chart review: cadence, sample size and documentation.
- Availability: response window for urgent clinical questions.
- Compensation: a stated fee consistent with fair market value.
- Insurance and indemnity: who carries what coverage (see malpractice insurance).
- Records and privacy: access to charts and HIPAA obligations.
- Term and termination: notice periods and transition of protocols.
What the agreement cannot do
A signature does not create oversight. The agreement describes what the director will do, and it only protects the practice if the director actually does it. A document that promises chart review that never happens is a liability.
Compensation structure and corporate-practice rules vary by situation. A healthcare attorney licensed in Arizona should review your agreement before you sign.
What a good agreement specifies
A useful agreement names the parties, describes the director’s duties, sets how orders and chart review work, defines how often the director is available, sets the fee and its basis, and explains how either party can end it.
Common mistakes
- A vague role description.
- No stated chart review process.
- No exit terms or notice period.
Frequently asked
Should compensation be a percentage of revenue?
Flat fees based on the scope and time the director provides are the structure most advisers recommend, because revenue-based or per-procedure compensation can raise fee-splitting and kickback concerns. Ask your attorney.
Can one director oversee several locations?
That depends on the agreement and on whether the director can realistically provide oversight at each site. The scope and availability terms should reflect it.
Educational information only, not legal or clinical advice. Rules and Board positions change, so confirm current requirements with the relevant Arizona licensing board and an Arizona healthcare attorney.