The Texas Prompt Pay Act: Providing Crucial Legal Protection for Doctors and other Medical Service Providers

Posted By admin on Mar 30, 2017 | 0 comments

Successful business entrepreneurs know fully well how exciting, yet difficult it is to form a new business. All decisions that will be made will have a significant influence on the ultimate success of a company, making it extremely important to take into consideration factors that will affect the company in both the short and long term. Thus, as explained by the Slater Pugh, Ltd. LLP, “If you are looking to form a business firm, especially, a medical or legal professional corporation, you need to make sure that your company’s specific interests are taken into consideration and addressed when the time to form your business entity comes; you will also need to take a number of factors into consideration as these factors will dictate aspects of your company and how it is run. These factors include professional liability, federal jurisdiction and taxation.” Besides the need to lay out your plan, which, in the first place, should comply with federal and local legal concerns, you will also need to plan on what type of business entity you will want to establish (a Sole Proprietorship, a Partnership, a Limited Liability Company, etc.), how to run your business and how you can ultimately get you company earning profits. Actually, some of the specific concerns you will be faced with when you start would be issues involving compliance with state and federal laws on workplace safety, workers’ insurance benefits, company taxes and liabilities, employment contracts, business deal contracts, company debts, private investment placement, company policies and employee compensation and benefits (which includes overtime pay). Compliance with federal and local business standards and capability of a company (especially a medical firm) in offering its employees with a competitive compensation package, however, requires that a company is profitable. Along this line of thought, the law firm Williams Kherkher says, “Doctors and other medical professionals provide an immensely valuable public service, and they deserve to be compensated fairly for their hard work and dedication. Unfortunately, many insurance companies engage in practices that are intended to deprive medical care providers of the compensation to which they are entitled. In order to help resolve this problem, Texas enacted the Texas Prompt Payment Act in 2003, which is geared towards helping medical professionals get their due compensation. The Texas Prompt Pay Act provides crucial legal protection for doctors and other medical service providers when it comes to getting the money they are owed. Because many insurance companies (covered by the Act) act in ways that are intended to limit the payments they must make to doctors to the fullest possible extent, the Prompt Pay Act provides a legal mechanism by which medical professionals can take action to get the compensation they are due in a timely manner. If you are a medical service provider and you have encountered problems with insurance company payments in Texas, it would be helpful if you will immediately get in touch with a seasoned lawyer who will be able to fight for your rights and interests.”

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