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Chapter5PowerPoint1.pptx

Law, Liability, & Ethics For Medical Office Professionals

Sixth Edition

Chapter 5

What Makes a Contract

Copyright © 2018 Cengage. All Rights Reserved.

Copyright © 2018 Cengage. All Rights Reserved.

Objectives (1 of 2)

Explain the elements necessary to make a contract

Recognize how oral contracts can be formed

Explain the difference between express and implied contracts

Copyright © 2018 Cengage. All Rights Reserved.

Objectives (2 of 2)

Identify who can and who cannot be a party to a contract

Describe the law of agency

Identify the various ways to terminate a contract

Recognize patient-related contracts that you will encounter

Copyright © 2018 Cengage. All Rights Reserved.

Contracts, In General

Doctor–patient relationship is contractual

Person making the appointment is the doctor’s agent in forming a contract

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Elements of a Contract

Offer

Acceptance

Consideration

Mutual agreement

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Consideration

In a medical community, the accepted term for consideration is fee for service

Fee is the cost to the patient for the physician’s services

Service is the cost to the physician for the patient’s fee

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Mutual Agreement

Clear understanding between the parties is known as mutual agreement

Both party who makes offer and one who accepts must be thinking and saying the same thing

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Types of Contracts

A contract may be either implied or express:

Implied are contractual obligations by some action or inaction without verbally expressed terms

Express are an actual agreement between the parties, the terms of which are

openly stated in distinct and explicit language, either orally or in writing

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Capacity of Parties (1 of 2)

A person with a legal disability cannot form a contract because a contract cannot be made by or enforced against a person who does not have the legal capacity for mutual assent

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Capacity of Parties (2 of 2)

Considered legally disabled:

Minors

Incompetent persons

Individuals under influence of a drug that alters their mental state

Persons under duress

Persons under undue influence

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Minors

Medical practitioners are liable for assault and battery of a minor without the consent of the parents or guardian

A minor is any person under the age of majority in that state

Physicians are not liable for treating minors without the consent when a medical emergency exists, and it is dangerous to delay the treatment in order to obtain the consent

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Emancipated Minors

In most states, a person can become emancipated from legal restrictions of being a minor by:

Marrying

Becoming a parent

Joining armed forces

Living away from home

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Statutory Adults

The term “minors” has been redefined as “statutory adults” at the age of 14 for the purpose of receiving medical care

Statutory adult is regarded as similar to an adult for the purposes of consent, privacy, confidentiality, and access to medical records, while parents may still be financially responsible for the cost of care

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Mature Minors

A non emancipated minor in mid- to late-teens who has the intelligence and emotional maturity to be able to grasp the information necessary to make an informed decision

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Constitutional Law Issues

Minors are persons and, as such, enjoy rights that belong to everyone from birth

One of these, constitutional right of privacy, is fundamental in medical matters

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Mental Incompetence

Exists when a party to a contract does not understand the nature and consequences of contract at time that it is formed

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Undue Influence

Occurs when one party in a contract improperly uses personal power over the other to cause actions not in the second party’s best interests

For example, when the physician uses the influential position to form an agreement that is more beneficial to the physician than to the patient, the physician is using undue influence

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Agency

When a person agrees to work for and under the direction or control of another, a principal–agent relationship is created.

Principal (employer)

Agent (employee)

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Termination of Contracts

A contract between a physician and a patient can be terminated in several ways:

The parties can mutually agree to terminate the relationship

Physician must provide reasonable notice of the physician’s intention to withdraw

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Breach of Contract

Occurs when one of the parties does not keep a promise:

By not performing

By not paying for services

By not keeping to schedule

By not doing procedure as had been agreed

When one party prevents the other party from performing

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Statute of Limitations

Defines the length of time a plaintiff has before he or she may no longer file a suit after injury

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Who Pays?

The relationship between physician and patient still remains contractual in nature.

Physician provides the service, and the patient pays the fee, usually a copayment or deductible.

The patient who receives treatment is responsible for payment even if someone else requests the services.

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Health Care Advance Directives

Patient Self-Determination Act

Comprehensive health care advance directive includes both

Living will

Health care power of attorney

Comprehensive health care advance directive is favored

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