Discussion Post II
Law, Liability, & Ethics For Medical Office Professionals
Sixth Edition
Chapter 5
What Makes a Contract
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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
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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
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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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