Protecting Your Practice: Navigating Contracts & Avoiding Costly Surprises
If you're a therapist running your own practice, chances are you've signed contracts for office space, software, practice management services, or other essential business needs. While contracts can provide stability, they can also include unexpected costs—especially if rates suddenly go up and you’re stuck paying more than you bargained for.
The good news? A little due diligence upfront can save you a lot of headaches later. Let’s talk about what to look for before signing and how to gracefully exit if costs get out of hand.
Key things to check before signing a contract
1. Are the terms crystal clear?
Contracts should spell out exactly what you’re getting, how much it costs, and what’s expected from both parties. If the language is vague or full of legal jargon, ask for clarification—or better yet, have a lawyer take a look.
2. What's the payment setup?
Before signing, understand:
- How much you’ll pay and when
- Any setup fees or hidden charges
- Late fees (because life happens)
Knowing this info upfront prevents any “Wait… I owe what now?” moments later.
3. How long are you stuck?
Some contracts auto-renew unless you cancel by a specific date—so mark that date in your calendar far enough in advance to complete any research and cancel the contract! You don’t want to realize too late that you’re locked in for another year.
4. Can they increase rates?
Read the fine print on rate hikes. Some contracts let the provider raise prices at will, while others cap increases at a certain percentage. If possible, negotiate limits on how often and by how much they can increase rates.
5. What happens if you need to cancel?
Look for:
- How much notice you need to give
- Any early termination fees
- Exceptions (like if they’re not delivering on their promises)
If a contract makes it too hard to leave, that’s a red flag.
6. Who’s responsible for what?
Check the liability section. If something goes wrong, you don’t want to be on the hook for damages that aren’t your fault.
7. Any aneaky non-compete or confidentiality rules?
If you’re working with a service provider or a business partner, make sure they don’t slip in a clause that restricts who you can work with in the future.
What to do if contract rates go up
Let’s say you signed a contract, and now they’re raising rates. What can you do?
1. Read the contract again
Before panicking, check if they’re allowed to increase prices. Some contracts require advance notice or have limits on rate hikes. If they’ve broken their own rules, you may have leverage.
2. Try to negotiate
Businesses don’t want to lose paying customers. Reach out and ask:
- If they can keep your current rate
- If they have loyalty discounts or alternative plans
- If you can pay upfront for a better deal
You’d be surprised how often providers are willing to work with you.
3. Give proper notice
If you decide to get out of the contract, make sure you:
- Follow the contract’s exit process
- Give written notice (email works, but a formal letter is even better – but be sure to check the contract’s requirements for giving notice, just in case)
- Keep a copy for your records
4. Talk to a lawyer if needed
If the provider refuses to let you go or charges an unfair penalty, a business attorney can help you understand your options. Sometimes, just mentioning legal counsel is enough to make them back down.
5. Plan your exit strategy
Before pulling the plug, line up a replacement service so your practice doesn’t miss a beat. Whether it’s a new billing system, office space, or software, having a smooth transition plan will make life easier.
6. Keep a paper trail
Save all emails, contracts, and notices in case of disputes. If things get messy, documentation is your best friend.
