Physician Obligation to Pay Vendor Invoices
February 14, 2011
When a
physician and vendor enter into a contract, there is an obligation
for physicians to pay their vendor within the timeframes outlined
in the contract and the Master Services Agreement (60 days). Paying
the invoices to electronic medical record (EMR) qualified service
vendors is no different than paying for other business overhead
expenses.
When a
physician signs the Physician Office System Program (POSP)
Physician Participation Agreement, they agree to abide by the
Program Guidelines which state:
POSP will
reimburse eligible physicians for 70% of each approved milestone
invoice (for eligible items only). POSP reimbursement is made on
the condition that physicians pay their vendor invoices. Failure to
pay may result in reimbursement being suspended.
If
physicians have been reimbursed by POSP, they have an obligation to
pay their vendor invoices for the milestones successfully
completed. They should not withhold payment if the milestone has
been reached and signed off. There are mechanisms in place to
resolve issues without withholding payment from the vendor. For
example, if a clinic successfully reaches Milestone 2 (Approved
Project Plan) they are obligated to pay that invoice. They should
not withhold payment just because they are having concerns at
Milestone 3.
Physicians
who do not pay their invoices are putting future reimbursement
funds at risk.