Tip of the week: Protect your facility from apparent agency claims with these best practices

Under the apparent agency theory, a patient can sue a hospital for the negligence of a physician if the patient perceived that the physician was an employee or agent of the hospital at the time the care was rendered. Hospitals commonly contract with medical groups to provide certain services, so hospitals in states that subscribe to the apparent agency theory often use disclaimer forms to protect themselves from being included in a malpractice claim. If your hospital is in a state that upholds the apparent agency theory, use these best practices to clarify practitioners’ role with the organization:

• Ensure that the disclaimer form is written in plain, understandable language (multiple languages if necessary)
• Post signs throughout the facility explaining the practitioners’ relationship to the hospital and that patients will receive separate bills from the contracted medical group
• Require that contracted physicians wear name tags and uniforms distinct from those worn by licensed independent practitioners and employed practitioners who do not work under contract
• Require physicians to provide patients with a verbal disclosure summarizing what is stated on the form. Patients should then verbally acknowledge that they understand, and the physician should document the disclosure and acknowledgement in patients’ medical records

This week’s tip is adapted from “Are apparent agency disclaimers fair?” in the July issue of Credentialing and Peer Review Legal Insider.