Types Of Contract

Introduction

A contract is an agreement between two parties. A contract can be formal or not. There are different types of contracts. That is managed care contracts, union contracts, personnel contracts and Medicaid and insurance contracts. The contracts differ in various ways. They differ in terms of use. Also, the contracts have some similarities. This paper analyzes the different types of contracts, their use and similarities and differences.

Managed care contract

Managed care refers to various methods used to reduce the cost of providing health benefit. It also helps improve the quality of care in the country. Managed care is common in many countries. Managed care contracts are designed to be used by the physician and managed care organizations. Different people can enter into a managed care contract. For example, an individual physician, his professional corporation and a group can enter into a managed care. Also, a physician network can enter into a managed care contract. The contract has various entities. That is the qualified physician part and the medical services entity (Rappaport, 2000).

Union contract

Another contract is the union contract. Union contracts are contracts offered by different unions in the country. The unions have different details from managed care contract. Union contracts are used to manage the relationship between an employer and union. The union contracts outline the benefits of the employer. Union contracts are common in many countries and they govern the relationship between the employer and union. A union contract has several items. First, a union contract should have a procedure for solving disputes. The employer and the union should include a grievance procedure. The grievance procedure authorizes the employer to file a grievance through the representative. The union helps him resolve the dispute (Rappaport, 2000).

Also, the union contract should contain wages schedules. That is the salary and the amount of hours worked. The union contract should show the employment details. That is employment security. The person should know when to get his wages and other benefits. Lastly, the contract union should include the medical benefit of an employer. It should outline health and safety rules (Rappaport, 2000).

Personnel contract

Personnel contracts are type of contracts that are developed to manage the relationship between the employer and employee. The personnel contracts are an agreement between the employer and employee. The contracts contain various details that control the relationship. For example, the contract has salary and employee details. The employer and employer are required to sign the contract so as to make it legal. Like union contracts, personnel contracts are common in many countries. This because the countries focus on preventing the employee from being exploited by unethical employers (Rappaport, 2000).

Medicaid/insurance contracts

Apart from personnel contracts, there are Medicaid/ insurance contracts. Medicaid is health programs that help individuals and families with low incomes access health care services. The programs are funded by the state and federal government. Medicaid contracts are an agreement between the physician and HMO. The contacts govern the relationship between the physician and the HMO (Rappaport, 2000).

Differences and similarities

The contracts above have some similarities and differences. The contracts are similar as they are all considered to be an agreement. For example, managed care contracts are used to guide how the physician and the organization carry out their duties. They include an agreement between two parties. That is the physician, corporation, group and the organization. Union contracts are an agreement between two parties, the employer and union. Also, Medicaid is an agreement between two parties. That is the physician and an HMO. Personnel contracts involve two parties. That is the employer and employee (Baker& Baker, 2009).

The contracts are similar as they contain clauses that contain different provisions. The clauses help the parties involved in their duties. For example, managed care contracts contain some clauses that help the physician and the organization in carrying out their duties. The clauses define who is required to enter into a contract with the organization. They have clauses like qualified physician details. The union contracts have clauses that provide different information. For example, the contracts have clauses like employment security and health and safety. The personnel contract has clauses that define who enters in a contract and how. The clauses are also common in Medicaid contracts. Hence, the contracts have similar clauses though they mazy are stated differently (Baker& Baker, 2009).

contracts differ in terms of use. Union contracts are used by employers to seek help from the union. They guide the employer in resolving disputes. The contract contains employment details. That is hours worked and salary. Managed care contracts and Medicaid contracts are used differently from union contract. The contracts are used to provide health care services to the poor in the country. While, union contracts are not used to provide health care benefits. Though, union contracts contain clauses like health and safety, the contracts are mostly aimed at improving the relationship between the union and the employer. Managed care contracts and Medicaid contracts and personnel contracts differ. Managed care contracts and Medicaid contracts are used to provide health care services to patients unlike personnel contracts (Baker& Baker, 2009).

When the contracts are used

The contracts are used in different times. Managed care contract are used when a physician is negotiating with a managed care organization. The contract helps the physician carry out his duties according to the rules set. The physician’s works within the contract to provide medical services to poor people in the country. The managed care contract is used to lower the cost of proving health care services to patients. Union contracts are used by organizations to manage the relationship between the employer and the union. Union contracts contain instructions that guide the parties when implementing the agreement. The contract help the employer get assistance from the organization in case of any dispute. This is because it contains a dispute resolution clause. It also states the health and security of the employer (Baker& Baker, 2009).

Personnel contracts are used by the organization to safeguard the interest of the workers. The contracts contain guidelines that guide the employer and the employee. For example, a personnel contract will have details like salary, hours worked etc. The employee is required to work within the rules set so as to avoid any conflict (Baker& Baker, 2009).

Medicaid contracts are used when providing medical services to people in the country. They are used to enable poor people in the country access health care services. The contracts provide guidelines to be followed by the physicians and the HMO when providing health care services (Baker& Baker, 2009).

Conclusion

There are different types of contracts. The contracts play different roles. For example, managed contracts and Medicaid are used to provide health care services to the patient. They help the physician provide quality services to the patient. Union contracts manage the relation between employer and union. Personnel contracts manage the relation between the employer and employee. The contracts are similar as they are an agreement between two people. They also contain similar clauses. They differ in terms of use.

Reference

Baker,R.W.,Baker,J.J.(2009).Health Care Finance: Basic Tools for Nonfinancial Managers. Jones & Bartlett Learning

Rappaport,M.(2000).Remodeling home care: making the transition from fee-for-service to managed care. Taylor & Francis

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