32 terms

Legal Aspects- Chapter 7

Authority of Health Care Corporations
Authority of corporation by states statues, corporate by-laws
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
Implied duty
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
Corporate Organization
an organized group in that its members interact and cooperate in the performance of certain tasks.
Committee structure
an organizational structure in which authority and responsibility are held by a group rather than an individual
Acts on behalf of the board, Liason between management & full board
The rules and regulations by which a corporation is governed; (Bylaws can be changed or amended).
the function of business that involves money management
Joint conference
Informal Liason between governing body, medical staff & admin
Responsible for developing & recommending membership
Responsible for recommending the use & development of organizational resources
Patient care
Review quality of care rendered
Audit/Regulatory compliance
Assessing various function & control systems of organization
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
Independent Contractor
A form of legal relationship that eliminates liability on the principal for acts of an individual you hire.
Corporate Officer/Director
Officer/Director of a corporation is not personally liable for the torts ( any wrongdoing) of corporate employees
Corporate Negligence
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.
Joint liability
Both the physician and hospital responsible for damages
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
Corporate Duties
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
CEO's roles, responsibilities, and liabilities
Implement, interpret policies & report to board
Medical staff responsibilities
Supervise med staff, make recommendations to Board & evaluate
Corporate Reorganization
process that eliminates factors that created financial distress and preserves the value of a business
Avoid self-dealing/ conflict of interest
Stark amendment; if you are a physician & own a pharmacy you cant send your patients there