What is a "provider contract"?

A "provider contract" is indeed a formal agreement between a healthcare provider and an insurance company. This contract details the terms of service, including how the provider will deliver care, the reimbursement rates for various services, responsibilities of both parties, and often stipulates how patients will be billed for services rendered.

This agreement is crucial because it establishes the working relationship between the insurance company and the healthcare provider, ensuring that both parties understand their obligations and reaffirms the parameters that govern patient care and payment. By clearly defining these terms, provider contracts help streamline processes and reduce confusion for both healthcare providers and patients.

In contrast, the other options do not capture the essence of a provider contract. While a list of approved healthcare services or an agreement on patient rights and confidentiality practices are important aspects of healthcare, they do not encompass the comprehensive scope of a provider contract with respect to payment and service details.