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Tina, Lawyer
Category: Legal
Satisfied Customers: 33167
Experience:  JD, BBA Over 25 years legal and business experience.
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My question is regarding business contract: We are a small

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My question is regarding business contract:

We are a small diagnostic imaging center where we provide MRI, CT, Ultrasound and X-Ray services to patients referred by local physicians or third party administrative (TPA) companies who manages bank of patients on behalf of insurance companies (their clients).

We are under a contract with a TPA who suppose to pay us within 180 days of filing the claim and as per the contract we are not suppose to contact patients for any matter.

Now they are behind in payment for more than 2 years when I told them that I will be billing patients, they threaten to sue me.

My question is since they are the one who violated the contract first, is it still valid?

I did provided services to the patients and now I need to get paid, what should I do?
Thanks for your help.

Hello and welcome.

My name is XXXXX XXXXX my goal is to provide you with excellent service today. I am sorry to hear of your difficult situation. Before I can give you an accurate answer to your question, please provide the following additional information:

Do you intend to terminate the contract altogether because of the breach, or do you intend to continue doing business with TPA?

I look forward to assisting you as soon as I have received this information. Thank you.

Customer: replied 4 years ago.

we have stop taking patients from them since February 2013 till we get paid. After that if that want to work with us I do not have any issue.

I see. Thank you for clarifying the situation for me, Syed.

Normally, the contract would remain binding on the parties unless one of the parties terminates the agreement altogether because of the other's breach. So you have a choice to file suit for breach of contract against TPA seeking the payment that you are owed (and not terminating the contract), or terminating it and then pursuing legal action against the company or the patients themselves.

If you intend to terminate the contract due to the breach, you should typically send written notice to TPA notifying them of your intent. I would send it by certified mail so you have proof it was received by the company.

In that case, you would normally be free to pursue payment directly from the patients assuming they signed an agreement to be liable for the charges if the company does not pay as agreed.

I hope this helps clarify the situation for you. Please remember to rate my service once you have all the information you need so I will be compensated for my time from the deposit you posted with this website. If you have any other questions, please ask me – I’ll be happy to respond. Thank you!


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Customer: replied 4 years ago.

Thank you very much for your quick and detail response.

You are very welcome, Syed.

Please remember to rate my service so I will be compensated for my time from the deposit you posted with this website. Thank you!