Appendix D • Sample Contract Term Sheets

Sample Contract
Term Sheets

Three model term sheets with provider-favorable and payer-favorable language alternatives

How to Use These Term Sheets

This appendix provides three complete sample contract term sheets — the economic and structural frameworks that define the deal before full contract drafting begins.

Term Sheet 1

The standard commercial payer-provider contract

Term Sheet 2

FFS base rates with a shared savings overlay

Term Sheet 3

Global capitation with stop-loss, governance, and data infrastructure

For each provision, we provide:

  • •Balanced language — A neutral starting point acceptable to both parties
  • •Provider-favorable alternative — Language that protects provider interests
  • •Payer-favorable alternative — Language that protects payer interests
  • •Negotiation notes — Why this provision matters and what to watch for

Legal Disclaimer: These term sheets are educational tools, not legal documents. Every provision must be reviewed by qualified healthcare counsel before incorporation into a binding agreement.

Term Sheet 1: Fee-for-Service Agreement

These three term sheets represent the full spectrum of payer-provider economic relationships — from traditional FFS to hybrid VBC to full-risk capitation. Use them as starting frameworks, not final documents. Every provision requires legal review, actuarial validation, and adaptation to your specific market, regulatory environment, and organizational capabilities. The organizations that invest in getting the term sheet right before drafting the full contract save months of negotiation and avoid years of operational conflict.

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