Ortiz V. St. Peter's

In: Business and Management

Submitted By aspire123
Words 388
Pages 2
Stephanie Morris
Ortiz V. St. Peter’s
Grand Canyon HLT-520
August 14, 2013

Hospitals are on a rise with entering into exclusive contracts with physicians to operate departments within the hospital. Physicians that are not in an exclusive contract are forbidden from performing the covered services. Physicians that are not in exclusive contracts they are terminated or services are being reduced. Exclusive contracts are negotiable. There are five important critical issues that should not be overlooked when negotiating. The important issues are scope of services, hospital politics, compensation structure, termination issues, and obligations after termination. Scope of services are very important you need to have it defined fully what services will be provided. Be aware in negotiating the contract to make sure the scope of services are defined broadly including current and future services to be provided. Compensation is very important in a contract. We all want to know how much we will be paid for the services we are providing. In an exclusive hospital the compensation is based on the demographics of the hospital’s service area. A breach of contract is when one party fails to hold up their end of the bargain under the in contract that is in place. Breach of contract could be actual or anticipatory. The actual breach of contract is when one party refuses to perform the required services that were agreed upon in the contract. The services not done by the due date or the services are incomplete. Anticipatory breach happens when one party tell you in advance that he will not perform on the due date. Once, a contract is breached, the only remedies are damages. The reasons for damages are to put the injured party in the same financial situation as he would be if he was still performing the services. This is to prevent the injured from…...

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