Medical Organizations And An Exclusive Contract

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Hospitals or specialized medical organizations often enter into a contract that is “Exclusive” meaning that the person or people will be providing a specific service to that organization. Specialized medical organizations also known as ancillary service departments are “specialized” departments such as radiologists, anesthesiologist, and cardiologists. Exclusive contracts are often seen between these specialized departments such as in the case of nurse Oltz, an anesthesiologist for St. Peter’s Community Hospital. Nurse Oltz, provided 84% of the surgical services for St. Peter’s Community Hospital. The nurse was terminated after his competitor entered into an exclusive contract with the same hospital ultimately terminating his contract with…show more content…
87). All basic elements can be found in the case regarding nurse Oltz and St. Peter’s Community hospital. The contract remained in full effect until the second signing of a new contract omitting nurse Oltz. Nurse Oltz had performed 84% of the surgical services for St. Peter’s Community Hospital fulfilling his part of the contract. However, the hospital did not fulfill their part of the contract by remaining in an exclusive relationship with the nurse Oltz. Instead, the hospital signed a new contract with a competing group of anesthesiologists who negotiated lower prices to push nurse Oltz out of the market which in the monopolized their power and finally, nurse Oltz loss revenue after being terminated by St. Peter’s Community Hospital. It was concluded by the jury that the hospital conspired with the group of competing anesthesiologists to squeeze nurse Oltz out of the market in order to level the playing field so to speak. Consequently, St. Peter’s Community Hospital was in breach of its current contract with the anesthesiologist nurse Oltz. Moreover, there are several elements that should be viewed and discussed before entering a legal and binding exclusive contract.
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