Ortiz v St. Peter's Case Study Assignment Paper

Ortiz v St. Peter's Case Study
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Ortiz v St. Peter's Case Study
Question One
Most often, both private and public hospitals enter into exclusive contracts with physicians so as to source particular services from them. A hospital may want to enter into a new contract with a new physician while terminating the contract of the pre-existing physician or simply entering into a contract with a physician to offer new services which were not offered in the hospital before (Kirchhoff, 2013). If the contract involves cancellation of a pre-existing physician, the hospital, as well as the new physician, should be cautious while entering such contract to avoid lawsuits that may be costly to both parties as a result of adversely affecting the privileges of the pre-existing staff (Kirchhoff, 2013). This essay argues that both parties should consider the hospital bylaws, be aware of any proposed agreements that pertain to a fair hearing and also consider consulting with legal counsel for advice on legal matters related to the contract (Kirchhoff, 2013).
A hospital should abide by the bylaws that guides on the privileges of the physicians who will be affected by a new contract that calls for termination of their contract. The bylaws provide for a fair hearing in case the contract adversely affects the privileges of medical staff as a result of the hospital terminating the contract (Kirchhoff, 2013). This may result in a lawsuit filed against the hospital that will consequently lead to fines and penalties if the affected physician can be able to seek a fair hearing as provided by the hospital bylaws under proposed agreements to a fair hearing (Kirchhoff, 2013). For example, in Georgia, a hospital entered into a new contract with a group of cardiologists to which the affiliated physician was not a member of. The physician could no longer access certain equipment from the hospital as a result. A law suit was filed, and the court determined that the physician's privileges were reduced and the hospital was fined. In the Oltz case, the new contract would adversely affect him because he would lose his income which is part of his privileges contained in the bylaws (Kirchhoff, 2013).
Also, seeking legal counsel advice will enable both the physician and the hospital to figure out the consequences that may pop up as a result of terminating the contract and assuming a new one (Kirchhoff, 2013). Legal counsel will advise both parties on the likely federal and court decisions that can result if the contract adversely affects the physician whose contract is terminated. The lawyer will also advise a physician on the performance criteria and possible act as a third party in the contract (Welch, Saunders, Land, Voss, & Turezyn, 2015).
Question Two
In certain cases, a hospital could sign a contract with a hospital, but after that, either of the parties fails to of...