Law, the Courts, and Contracts Ch 4 Law, the Courts, and Contracts

Learning Outcomes 4.1 Discuss the basis and primary sources of law. 4.2 Discuss the classifications of law. 4.3 Define the concept of torts and discuss how the tort of negligence affects health care. 4.4 List and discuss the four essential elements of a contract. LO 4.1. Discuss the basis of and primary sources of law. LO 4.2. Discuss the classifications of law. LO 4.3. Define the concept of torts and discuss how the tort of negligence affects health care. LO 4.4. List and discuss the four essential elements of a contract.

4-3 Learning Outcomes 4.5 Differentiate between expressed contracts and implied contracts. 4.6 Discuss the contractual rights and responsibilities of both physicians and patients 4.7 Relate how the law of agency and the doctrine of respondeat superior apply to health care contracts. LO 4.5. Differentiate between expressed contracts and implied contracts. LO 4.6. Discuss the contractual rights and responsibilities of both physicians and patients. LO 4.7. Relate how the law of agency and the doctrine of respondeat superior apply to health care contracts. 3

Sources of Law: Federal Government Legislative Branch (Congress) Senate, House of Representatives Write, debate, and pass bills Executive Branch (President) Executive orders become law without approval of Congress Judicial Branch (Supreme Court) Intreprets and oversees laws LO 4.1. Discuss the basis of and primary sources of law.

State Legislation Legislative Executive Judicial branch 4-5 State Legislation Legislative Those responsibilities not governed by the federal government are duties of the state Executive Governor is the head of the state Judicial branch LO 4.1. Discuss the basis of and primary sources of law. 5

Powers of Federal/State Government 4-6 Powers of Federal/State Government LO 4.1. Discuss the basis of and primary sources of law. Table 4-1 6

Other Types of Law Constitutional Case Common 4-7 Other Types of Law Constitutional Derives from federal and state constitutions Case Established from common law and legal precedent Common Body of unwritten law formed in England LO 4.1. Discuss the basis of and primary sources of law. 7

Question Tell whether the following statement is true or false. 4-8 Question Tell whether the following statement is true or false. Case law is law that is derived from federal and state constitutions. True False LO 4.1. Discuss the basis of and primary sources of law. 8

4-9 Answer False Constitutional law is law that is derived from federal and state constitutions. Case law is law established through common law and legal precedent. LO 4.1. Discuss the basis of and primary sources of law. 9

Four Types of Law Constitutional Case Statutory Administrative 4-10 Four Types of Law Constitutional Based on U.S. constitution Case Set by legal precedent Statutory Enacted by state or federal legislatures Administrative Enacted to define specific agency powers LO 4.1. Discuss the basis of and primary sources of law. 10

Classifications of Law 4-11 Classifications of Law Substantive Defines and regulates legal rights and obligations Procedural Defines rules used to enforce substantive law LO 4.2. Discuss the classifications of law. 11

Classifications of Law (cont.) 4-12 Classifications of Law (cont.) Criminal Law involving crimes against state Civil Involves wrongful acts against persons People can sue another person, a business, or the government LO 4.2. Discuss the classifications of law. 12

Types of Criminal Law Felony Misdemeanor 4-13 Types of Criminal Law Felony An offense punishable by death or by imprisonment in a state or federal prison for more than one year Misdemeanor A crime punishable by fine or by imprisonment in a facility other than a prison for less than one year LO 4.2. Discuss the classifications of law. 13

Tort Liability Tort Tortfeasor 4-14 Tort Liability Tort A civil wrong committed against a person or property excluding breach of contract Must involve injury, damage to property, or deprivation of civil liberties May be intentional or unintentional Tortfeasor Person guilty of a tort LO 4.3. Define the concept of torts and discuss how the tort of negligence affects health care. 14

4-15 Intentional Torts LO 4.3. Define the concept of torts and discuss how the tort of negligence affects health care. Table 4-2 15

Question Tell whether the following statement is true or false. 4-16 Question Tell whether the following statement is true or false. A physician commits fraud when he tells staff members not affiliated with the case that a patient in his care has HIV/AIDS. True False LO 4.3. Define the concept of torts and discuss how the tort of negligence affects health care. Table 4-2 16

4-17 Answer False A physician commits invasion of privacy when he tells staff members not affiliated with the case that a patient in his care has HIV/AIDS. Fraud involves deceitful practices when depriving another of his rights. LO 4.3. Define the concept of torts and discuss how the tort of negligence affects health care. Table 4-2 17

Unintentional Torts: Negligence 4-18 Unintentional Torts: Negligence Charged when a health care practitioner fails to exercise ordinary care and a patient is injured Can also be charged to an institution What would/could a reasonably careful hospital do under similar circumstances? LO 4.3. Define the concept of torts and discuss how the tort of negligence affects health care. 18

Evidence of Medical Malpractice 4-19 Evidence of Medical Malpractice Expert testimony Existing federal and state laws Hospital bylaws Custom and community practice Accreditation standards LO 4.3. Define the concept of torts and discuss how the tort of negligence affects health care. 19

The Court System Federal courts Jurisdiction: power to hear a case 4-20 The Court System Federal courts Jurisdiction: power to hear a case State courts Local, trial, appellate, Supreme Court LO 4.3. Define the concept of torts and discuss how the tort of negligence affects health care. 20

Court Systems in the U.S. 4-21 LO 4.3. Define the concept of torts and discuss how the tort of negligence affects health care. Figure 4-4 21

Players in the Court Scene 4-22 Players in the Court Scene Plaintiff Person bringing charges Prosecution Government as plaintiff in criminal case Defendant Party against whom charges are brought LO 4.3. Define the concept of torts and discuss how the tort of negligence affects health care. 22

4 Essential Elements of Contracts 4-23 4 Essential Elements of Contracts Definition: voluntary agreement between two parties in which specific promises are made for consideration Agreement Consideration Legal subject matter Contractual capacity LO 4.4. List and discuss the four essential elements of a contract. 23

Types of Contracts Expressed contracts Implied contracts 4-24 Types of Contracts Expressed contracts Written or oral agreement in which all terms are explicitly stated Implied contracts Unwritten or unspoken agreement whose terms result from the actions of the parties involved LO 4.5. Differentiate between expressed contracts and implied contracts. 24

Termination of Contracts 4-25 Termination of Contracts Failure to pay for services Failure to keep appointments Failure to follow physician instructions Patient seeks services of another physician LO 4.5. Differentiate between expressed contracts and implied contracts. 25

Aspects of Physician/Patient Contract 4-26 Aspects of Physician/Patient Contract Third party payment contract Fair Debt Collection Practices Act Implied contracts Managed care plan contracts LO 4.5. Differentiate between expressed contracts and implied contracts. 26

Contractual Rights of Physicians 4-27 Contractual Rights of Physicians Make reasonable limitations on physician/patient relationship Set up a practice based on credentials Set up an office and determine hours Specialize Decide what services will be provided and how they will be provided LO 4.6. Discuss the contractual rights and responsibilities of both physicians and patients. 27

Patient Care Partnership/rights 4-28 Patient Care Partnership/rights Considerate and respectful care Information on diagnosis and treatment Information to give informed consent Right to refuse treatment Confidentiality Continuity of care Knowledge of hospital rules sub1 suba sub2 LO 4.6. Discuss the contractual rights and responsibilities of both physicians and patients. 28

Implied Duties of Patient 4-29 Implied Duties of Patient Follow physician instructions and cooperate as well as able Give all relevant information to the physician to form diagnosis Follow physician orders for treatment Pay fees for services rendered LO 4.6. Discuss the contractual rights and responsibilities of both physicians and patients. 29

Law of Agency Law governing relationship between principle and agent 4-30 Law of Agency Law governing relationship between principle and agent May be expressed or implied Agent: one who acts for another Respondeat superior: Physician is responsible for acts of employee LO 4.7. Relate how the law of agency and the doctrine of respondeat superior apply to health care contracts. 30

Question Tell whether the following statement is true or false. 4-31 Question Tell whether the following statement is true or false. Under the doctrine of respondeat superior, physicians are liable for the acts of their employees performed within the course and scope of employment. True False LO 4.7. Relate how the law of agency and the doctrine of respondeat superior apply to health care contracts. 31

4-32 Answer True Under the doctrine of respondeat superior, physicians are liable for the acts of their employees performed within the course and scope of employment if two elements are present. First, the employee must be engaged in furtherance of the master's business; and, second, he or she must be acting within the scope of the master's business. LO 4.7. Relate how the law of agency and the doctrine of respondeat superior apply to health care contracts. 32