HFMA Test 7: Contracts Questions and Correct Solutions 2024

HFMA Test 7: Contracts Questions and Correct Solutions 2024 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 contracts to be complete. An implied contract is:One that is written and executed between both parties. One where there has been a verbal exchange of provisions between both parties. One where the actions of the parties demonstrate willingness to the intent of the agreement. None of the above. - Answer -One where the actions of the parties demonstrate willingness to the intent of the agreement. Purpose of Boilerplate Provisions - Answer -Purpose The purpose of boilerplate provisions is to save the parties and drafters of contracts time through the use of language that is common in most contracts. Although the clause may be labeled as a boilerplate provision, it can still be tailored to meet your specific contracting requirements. Always read ALL sections of any contract before signing it. Examples of Boilerplate Provisions: - Answer -Examples of Boilerplate Provisions: 1. Choice of Law 2. Modification of Agreement 3. Severability of Agreement 4. Separate Exhibits