Legal Questions

[Apotheosis]

First of all, I am not in any legal trouble, nor do I intend to be.

I've been working with a friend over the past few months in order to help him establish his business (working marketing and sales).

So, one of our clients would like us to establish a contract (ie retain us). She's basically going to pay us a good sum of $$$ in order to provide our services (IT). Said client is a medical provider, and is therefore considered a covered entity of some law established a few years ago. (The law deals with HIPAA compliance, and PHI). In other words, the stuff is all legislation that addresses the security and privacy of patient records/medical information.

In our case, a standard contract won't work, and therefore we have to get a special type of lawyer that handles these sorts of issues. Found a good one, although, quite frankly, I have never really dealt with a business lawyer before. They are definitely on top of the game when it comes to dealing with this particular code of law, and I trust them to help us establish a proper contract.

With that said, I was informed that we are going to receive what's called a "Letter of Engagement" which basically establishes the ground rules for our relationship with this firm.

I am just concerned because, in the event that they do draft a proper contract with us, that we may have further financial obligations towards them post drafting.

So, I guess, anyone have advice when dealing with business lawyers (and how to keep our expenses and other obligations down)?

I am not worried about being able to fulfill our end of the contract (towards the client), however I am being ultra careful right now.

[Apathy]

Have you signed anything or verbally agreed to pay them for providing a draft?

[Apotheosis]

No idea. I never signed anything, although I did say that we would be able to pay them (although not specifically towards a draft). We did establish our financial position, and they said they would be able to work within our budget.

I did mention that I was technically not the person in place to make a decision on this, as well.
I sent a follow up e-mail after the call to clarify what our needs were as well.

[Sean of the Thread]

Are you hiring? :)

[Apotheosis]

Do you have mad HIPAA compliance training? =D

[Wezas]

Do you have mad HIPAA compliance training? =D

Are you kidding? Xyelin has had quite a bit of experience making drunk hippos comply.

[Tromp]

So you are asking for help developing a contract to supply IT services to a medical company that is governed by the HIPAA?

My advice is that you don't want to skimp on the contract. Cover your butt in case a leak does happen and that you are only responsible for such events that are directly caused by your product not the user's stupidity (gross negligence). KEY WORD = INDEMNIFICATION

[Apotheosis]

Yezz. Exactly. I've made it very clear as to what services we provide and what we will not.

But covering our ass. Yes. that's the motto.

[Tromp]

Yezz. Exactly. I've made it very clear as to what services we provide and what we will not.

But covering our ass. Yes. that's the motto.

Are their not IT trade groups that have standard contracts like the AIA contracts etc.? I'm sure your consulting firm is not re-inventing the wheel when it comes to the medical industry.

Chat with other IT business owners that do something similar and see if you can get a law firm that they've used so your not paying for this law firm to develop something from scratch.

[Apotheosis]

The firm is not developing something from scratch. They said they already have the appropriate contracts set up for this sort of arrangement.

[Mistomeer]

Do you have mad HIPAA compliance training? =D

LOL. As if such a thing exists.