Express Corporate authority
Power specifically delegated by statute, Articles of Incorporation set forth the purpose of the corp's existence& the powers the corp is authorized to exercise to carry out its purpose
Implied Corporate Authority
The right to perform any and all acts necessary to exercise a corporation's expressly conferred authority. ie. governing body can enact new bylaws rules & regulations
Hospitals have implied duty to patients to select competent physicians who would be providing in-hospital care to their patients
CASE STUDY: Purcell & Tucson General Hospital v Zimbleman pg 94
Surgeon performed inappropriate surgery because of his misdiagnose of the patient's ailment. Prior malpractice suits against the surgeon revealed that the hospital had reason to know or have known the surgeon lacked the skill to treat Court held that the hospital had a clear duty to select competent physicians.. the hospital is negligent in not taking action
Ultra Vires Acts
A hospital can be held liable for acting beyond the scope of authority either express or implied law
an organized group in that its members interact and cooperate in the performance of certain tasks.
an organizational structure in which authority and responsibility are held by a group rather than an individual
The rules and regulations by which a corporation is governed; (Bylaws can be changed or amended).
Assess Risk Manager & Emergency ( Safety Officer), monitors conditions and develops measures for ensuring safety for all individuals
CASE STUDY: Sarbanes-Oxley Act of 2002
Enacted as a response to the misconduct committed by executives in companies such as Enron resulting in investor losses
"Can't cook the books" and leave financials out
Doctrine of Respondeat Superior
Let the master answer; that is, the employer is legally responsible for the negligent actions of his or her employees. Vicarious liability
A form of legal relationship that eliminates liability on the principal for acts of an individual you hire.
Officer/Director of a corporation is not personally liable for the torts ( any wrongdoing) of corporate employees
Occurs when a health care corporation fails to perform those duties it owes directly to a patient or anyone else to whom a duty might extend. If such a duty is breached, corporation is held liable under corporate negligence
CASE STUDY: Darling v Charleston Community Memorial (1965) Pg 98 Corporate Negligence
Benchmark Case; Major impact on the liability of health care organizations. High school athlete suffered an
amputation because of complications, from cast treatment of a lower extremity fracture at a hospital. The doc had not treated a leg fracture in 3 yrs. Court held hospitals have a duty to provide adequately trained medical & nursing staff.
CASE STUDY: Elam v College Park Hospital ( 1982) Corporate Negligence
Reestablished Darling Case focused on the hospital's failure to recognize that an individual staff surgeon may not
have been competent to safely perform surgery.
CASE STUDY: Gonzales v Nork & Mercy Hospital
Negligence; joint liability
Hospital found negligent for failing to protect ; Gonzales was a young man injured in an auto accident in California
in 1967. Dr. Nork performed a laminectomy--the indication for which was questionable--that resulted in complications. Gonzales sued both Dr. Nork and Mercy Hospital.
California Superior Court ruled in its 1973 Gonzales v. Nork decision that the hospital should have known of Dr. Nork's substandard practice and taken steps to protect other patients. This case showed that the hospital board is held ultimately responsible for overseeing physician privilegesCalifornia Superior Court ruled in its 1973 Gonzales v. Nork decision that the hospital should have known of Dr. Nork's substandard practice and taken steps to protect other patients. This case showed that the hospital board is held ultimately responsible for overseeing physician privileges
Select CEO, comply with statutes.jt commission, timely treatment, avoid conflict of interest, adequate facilities, & insurance, financially scrupulous, provide satisfactory patient care, require competitive bidding,& provide safe work environment
process that eliminates factors that created financial distress and preserves the value of a business