Introduction to Tort Law and Contract Law

Introduction

Chapter 6 Background:

Focuses on tort law and the various causes of action that may be encountered in the healthcare and health information setting. Tort law’s unique role in safeguarding the rights of individuals and other legal entities is explained in terms of negligence, intentional torts, strict liability, and contract principles and the various causes of actions or claims. The chapter reviews the basis of liability, including defamation, invasion of privacy, breach of confidentiality, infliction of emotional distress, medical malpractice, and criminal conduct. Each of the causes of action related to a damages award claimed for injuries are discussed as are the various defenses a defendant may bring. While HIPAA is discussed in detail in chapters 9 and 10, this chapter does introduce some aspects of the rule. The chapter also focuses on issues relating to medical malpractice insurance and tort reform measures at the state and private insurance levels.

Chapter 7 Background:

Healthcare organizations must continually make business decisions that have legal implications. One decision is the legal form that an organization will take. Although small organizations may assume partnerships and sole proprietorships, a common form is the corporation. This chapter discusses the structure and legal status of a corporation and its associated legal obligations. Regardless of a healthcare organization’s form, individuals within the organization have some level of contracting authority. From a provider standpoint, the physician-patient relationship itself is a contract. From a business standpoint, the authority to enter into contracts is most often held by healthcare administrators, managers, and department directors. Among the many types of contracts are health information technology (HIT) contracts, which have proliferated in response to the federal government’s incentive program to adopt the electronic health record (EHR). In addition to contracting authority, decisions made by individuals in healthcare organizations may have antitrust implications. This chapter describes basic, yet significant, legal concepts that affect the healthcare organization as a business, including health information management and informatics-related functions.

Outcomes

By the end of this module, you will be able to:

Differentiate between the various types of torts.
Compare the legal theories of health institution liability.
Discuss liability of the health information professional
Contrast factors used to determine statues of limitation
Appraise situations when criminal liability applies to healthcare situations
Analyze the key differences between a for-profit and a not-for-profit corporation.
Articulate the key responsibilities of the governing board of a typical healthcare organization.
Describe the basic elements of a valid contract.
Discuss potential defenses against allegations of nonperformance (breach) of a contract.
Articulate key areas of risk associated with health information technology contracts.
Describe the physician-patient relationship as a contract.
Distinguish the parameters of three major federal antitrust statutes.
Explain contract and antitrust issues associated with medical staff.

Learning Activities

M4 Video Overview:

Read & Watch: Required Module Readings & Resources

Additional Resources

Videos:

Tort Law & Types of Torts:

Introduction to Tort Law YouTube, Alanis Business Academy, 2023 (4:38)

What are the types of torts YouTube, The Business Professor, 2016, (2:54)

Oachs Textbook: Chapter #2: Legal Issues in Health Information Management
Specific Attention to Key Terms
Check Your Understanding Answer Keys

Graded Assignments

M4 Graded Discussion: Hot Coffee Due 11/12/23
M4 Assignment: Vocabulary and Definitions Due 11/12/23
M4 Application Assignment: Ch. 6 - Scenario, Web Review, and Q/A Due 11/12/23
M4 Application Assignment: Ch. 7 Case Scenarios and Q/A Due 11/12/23
M4 Comprehensive Exam: Introduction to Tort Law and Contract Law Due 11/12/23

Tips for Success

To help in the completion of this Module, you should…

Complete all Required Reading and take notes during lectures.
Focus on Key Terms/Vocabulary - know the meanings, definitions, and context for the terms in each chapter
Know the due dates and deadlines of all assignments
Pay close attention to assignment requirements, including the naming conventions for saved/uploaded files
Don't forget to maintain your discussion boards! It's easy for students to lose points by not replying to their peers or maintaining posts from week to week and these missed points can add up in the overall grade for this course.
Don't lose your work - always save a back-up copy of all assignments including your discussion board content.
Ask for assignment clarifications as needed - your instructor is always available to help!