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Contract Case Summary

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Contract Case Summary
The case scenario starts off by stating that two employees of the hospital engaged in an exclusive contract. Since Ortiz agreement was to provide services to individuals in rural communities it ended up lowering the fees for the anesthesiologist so he decided to renegotiate his contract with the hospital which breached his original contract between the two of them causing the anesthetist services with the hospital. In turn leading to a lawsuit filed sharing that there was a violation made regarding the Sherman Antitrust Act, Section 1. This brings up much concern and questions such as: What individuals in a party should be made aware of when negotiating exclusive contracts? And which remedies are available when one of the parties breaches the contract by refusal to perform services that were originally agreed upon?
Five issues when negotiating a contract
There are five essential issues that a person, facility or organization should be made aware of when negotiating an agreement or a contract and they are as follows: scope of service, hospital policies, compensation structure, termination issues and obligation after termination. A contract is simply an agreement with two or more parties for an essential amount of service. When a hospital engages …show more content…
Otherwise problems will arise between the two providers as to which one should provide each service. Such as the problem between the nurse anesthetist and the anesthesiologist over the lowering of fees and the way the anesthesiologist undermined his authority by renegotiating the agreement that was first done amongst the two groups. Be vigilant in negotiating the contract to define the scope of services broadly, including all current and future services to be maintained making sure they are abreast with the skills that are required to perform what is dully need for the welfare and quality of the patients (Leone, A.M.,
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