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Basis of Hospital Liability |
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Vicarious/Indirect Liability Direct Corporate Liability |
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Sources of Hospital Liability Immunity |
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Sovereign Immunity Charitable Immunity Independent Contractor |
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Government - has eroded over time |
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Immune due to charitable care - no longer exists |
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Hospital not responsible because physician etc was a contracted individual |
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Indirect legal responsibility for acts of an agent or employee Respondeat superior |
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Was a tort committed? Was the tortfeasor and agent/employee of the defendant hospital? Was the tortfeasor acting within the scopre of agent/employee duties? |
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Employee/Agent v. Independent Contractor |
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Who controls work plan? Who controls work schedule? Is the person paid? |
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Holds itself out a provider of service Governing board has power of appointment/revoke privileges Oversees quality of care issues Patients have no notice of IC status Patients rely on hospital to furnish physicians |
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Surgeon should be in control of all others under his command (less common) |
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liability of the corporations itself to maintain a qualified medical staff maintenance of buildings and grounds maintenance and selection of hospital equipment |
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Violation of Rules (Bylaws and regs) = ? |
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Individual suffers all the losses, enjoys all the gains |
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Two individuals sharing losses, profits not separate legal entity not taxed on profits |
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some partners can have full powers limited liability partnership = certificate of partnership who has responsibility for limited partnership |
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partnership created by contract for a specific purpose, liability unlimited |
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created by law, authorized by statute Separate legal identity created by filing articles of incorporation personal liability limited |
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Advantages of corporations |
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Limited liability continuity of existence free transfer of ownership interests corporation separate taxable entity ability to raise outside capital |
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Corporate Practice of Medicine |
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Prohibit business corps from practicing medicine or employing docs to provide medical services exceptions are hospitals and professional corps |
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designated by statute or charter Power to buy, lease or other wise acquire property Power to make contracts |
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powers reasonably necessary to carry out express powers |
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4 functions of governing boards |
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Develop policy and strategic plans Appoint senior administration and medical staff members Delineate clinical privileges Oversee professional performance of both administrators and medical staff |
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Duties of governing board |
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Fiduciary Duty Duty of Loyalty Duty of Care/Duty of Responsibility |
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must act for the benefits of others |
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No conflict of interest No improper self benefit Cannot usurp corporate opportunity individuals must put the interest of the corporation above all self |
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obedience to the mission of the corporation |
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Duty of Care/Responsbility |
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Reasonable care, skill and diligence Act in good faith Fulfill membership functions personally Preservation of corporate assets Duty to pay taxes owed Basic management duties |
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Who can pierce the corporate veil? |
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Two or more organizations combine and one organization is the survivor |
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Two or more combine to create a new legal entity |
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Two or more corporations come together for a specified purpose for a limited duration. Parties owe a fiduciary duty to one another, and profits and losses are shared according to agreement |
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Term
required elements of negligence |
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Definition
A duty of care Breach of the duty Causation Damages |
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First it must be proved that a duty was owed to the person harmed. Second, the scope of that duty, sometimes called the standard of care must be proved. |
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Standard of care is measured by the average physician in the same practice area |
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Reasonable person standard |
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reasonably prudent person in similar circumstances |
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Established by - expert testimony common sense written guidelines res ipsa loquitor |
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credentialed – familiar with this type of practice in this locality Must be profesionally qualified – knowledge of the standard of practice need not be the same kind of doctor, but must know the standard of care |
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issues which judge can determine without the assistance of an expert |
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Examples of written standards |
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licensure regulations institutional rules accreditation standards clinical guidelines reference books |
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Accident is such that it normally would not occur without someone's negligence The defendant had control over the apparent cause of the accident The plaintiff could not have contributed to the accident |
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individual harmed by the violation need only prove... (res ipsa loquitor) |
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1. that the law was intended to protect people like himself 2. The law was violated 3. The injury is the type that the law was trying to prevent 4. The injury was caused by the violation |
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actual or compensatory pain and suffering loss of chance |
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to repay out of pocket expenses to the plaintiff |
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punitive damages (pain and suffering) |
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intended to punish the tort feasor |
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Assumption of risk Contributory and comparative negligence Contracts Release Good Samaritan Laws Workers comp governmental immunity statute of limitations |
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people knowingly perceive a risk but expose themselves to it or remain in a position of danger |
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if the patient failed to act a s a responsibly prudent person would be expected to act, and that failure contributed to the injury |
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attempting to compensate the injured party - part negligence of defendant part plaintiff |
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Defamation Abuse of process Malicious prosecution |
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requires the showing that the plaintiff maliciously used the legal system for an unlawful purpose |
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motive was ill will, no belief that they could actually win |
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Arbitration No-fault system Risk Management |
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Was there an agreement What did each party commit to do Did either party - or both - fail to do what he or she promised If yes, how do you measure the cost to the non-breaching party |
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Agreements that the law will enforce - oral or written |
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The promises are communicated by language, either oral or written |
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The conduct of the parties indicates that they consented to be bound |
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A person accepts an offer by performing a requested act. The terms of the offer must clearly indicate that an act is required for acceptance |
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A person accepts an offer by promising to do the requested act |
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No minors - no mentally incompetent |
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When does a contract exist? |
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Offer Consideration Acceptance Mutuality |
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One of the parties made a promise to do or refrain from doing some specified action in the future |
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Something of value was promised in exchange for the specified action or nonaction value that induces the parties to enter into the contract |
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The offer was accepted unambiguously. Acceptance may be expressed through words, deeds or performance as called for in the contract |
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Meeting of the minds parties understood and agreed to the basic substance and terms of the contract |
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Contract Questions for the Judge |
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1. Did a contract exist? 2. If so, what did the contract require of each of the parties? 3. Was the contract modified at any point? 4. Did the claimed breach of contract occur? 5. If so, was the breach material to the contract? 6. Does the breaching party have a legal defense to enforcement of the contract? 7. What damages were caused by the breach? |
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other party receives something substantially different from what the contract specified |
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the breaching party failed to perform some aspect of the contract but the other party still receives the item or service specified in the contract Can still recover damages |
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defenses against breach of contract claim? |
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Enforcement of the contract would violate public policy Performance of the contract has become impossible or become frustrated Contract is illegal Lacks consideration Obtained by fraud contains a mutual mistake contains a unilateral mistake one or both parties lacked capacity to make contract |
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non-breaching party is obligated to mitigate, or minimize, the amount of damages to the extent reasonable |
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doctor/patient relationship termination |
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Mutual Patient withdrawal Physician withdrawl |
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physician notifies a patient that he or she is withdrawing form the patient's case but fails to give the patient enough time to get another physician |
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implied by conduct - such as a doctor admits but never returns to see patient |
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sufficient time is given may limit practice geographically may find another appropriately trained substitute |
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Breach of Contract - doctor/patient |
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failure to preform contracted service with reasonable care and skill negligence AND breach of contract |
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Failure to provide a promised outcome malpractice AND breach of warranty |
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A civil wrong person intends to do the wrong intends no harm but fails to act as a reasonable person would act is wrongful but not because of intent - just because of its inherent high risk |
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assault and battery Defamation false imprisonment invasion of privacy wrongful disclosure of confidential information misrepresentation outrage - intentional inflicts of emotional distress |
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the law government and its relationships with the individuals and business |
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rights and duties between personal and private business |
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contract law tort law governmental statutes and regs |
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sanctions for behavior injurious to public order |
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constitution statutes administrative law judicial decisions (common law) |
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The complaint the answer discovery trial |
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losing party = appellant original winning party = appellee |
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local officials can seize the losers property and have the property sold to satisfy the judgement |
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when a 3rd party pays the winner - such as percentage of paycheck sent to winner |
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