Medical Law – Contracts & Related Concepts (Video)

Vocabulary flashcards covering contracts and related concepts from lecture notes.

Contract

A body of law that enforces promises between persons.

Offer

Expression of intent to make a deal.

Acceptance

Reciprocal intent to make a deal.

Consideration

Mutual obligations exchanged between parties.

Mutual Assent

Both parties must agree and have the same understanding.

Implied Contract

Created where none exists; prevents injustice; ER care example; physician entitled to payment on quantum meruit; amount determined by court.

Express Contract

Definite agreement between parties (e.g., buying a car, student loans).

Oral Contract

Enforceable but proof can be difficult.

Written Contract

Enforceable by its terms.

Physician’s Rights

May refuse to enter contract but cannot discriminate.

Agency

One person represents another.

Agent

Representative (e.g., MA/Surgical Tech) of physician.

Principal

Physician or medical office; employer of the agent.

Liability for Agent Mistakes

Mistakes by agent → liability on the physician/principal.

Capacity

Legal ability to form a contract; affected by disability, duress, or minority.

Legal Disability

Inability to enter contract due to status (e.g., minor).

Minors

Under 18; cannot contract; emancipated minors exceptions; HEW categories cover medical bills.

Emancipated Minor

Minor who is legally independent and can contract.

HEW Rule

Health, Education, Welfare; categories used to allocate responsibilities.

Spousal Responsibility

Spouses are responsible for each other’s medical bills.

Birthday Rule

If both parents have insurance, the spouse with the earliest birthday submits first.

Conservator

Oversees finances for an incompetent person.

Guardian

Oversees basic needs (food, shelter, medical care).

Incompetence

Declared by a judge; person cannot manage affairs.

Undue Influence

Unfair persuasion substituting one’s judgment (e.g., inheritance manipulation).

Healthcare Directives

Instructions for future medical decisions if a person cannot decide.

Termination of Contracts

Either party can end the doctor–patient relationship.

Patient cured

Reason for termination when the patient is cured.

Patient fires doctor

Reason for termination when the patient ends the relationship.

Doctor withdraws

Reason for termination when the doctor withdraws; requires proper notice.

Proper termination

Process: termination via certified mail; patient given time to find a new physician.

Termination Letter Contents

Statement of further treatment needs; records availability; termination date; recommendations for care.

Records Availability

Provider must give patient access to records.

Abandonment

Illegal refusal to treat without proper withdrawal.

Breach of Contract

One party fails to fulfill obligations; non‑breaching party entitled to damages.

Damages

Monetary compensation to make the non‑breaching party whole.

Compensatory Damages

Damages intended to compensate the harmed party; not punitive.

Statute of Limitations

Time allowed by law to file a lawsuit; varies by state; absolute defense.

Discovery Rule

Time clock starts when the plaintiff knew or should have known about the problem.

Personal Injury

2 years from the incident to file a claim.

Medical Malpractice

Liability from medical errors; typically 2 years from knowing; discovery rule may apply; varies by state.

Minor Plaintiffs

2 years from the 18th birthday; protects minors if parents didn’t sue; memories can fade.

Charity Care

Indigent patients may qualify for charity care.

Divorce Cases

Physician not bound by divorce judgments; offices may require the paying parent to bill for child.

Payment Restart Rule

Payments restart the 6‑year period; collection agencies exploit this.

Primary vs Secondary Insurance

Insurance coordination; primary payer pays first; secondary covers the rest.

Quantum Meruit

Reasonable value of services; used to determine payment when no contract exists.