Sample bylaw language for exclusive contracts

If a practitioner loses privileges or membership because the hospital offers an exclusive contract to another practitioner or specialty group, most institutions will not offer a fair hearing, and the action is not reported to the NPDB. Most hospitals have one or more exclusive contracts with members of the medical staff to ensure round-the-clock coverage for a particular service. Most institutions do not want to waste resources on fair hearings when they exclude physicians to comply with an exclusive contract. Nevertheless, physicians who find themselves ineligible to hold certain privileges as a result of an exclusive arrangement may choose to sue the hospital. Courts generally analyze the hospital’s medical staff bylaws and contracts to see whether the language supports an interpretation that a hearing is required. Therefore, it is advisable that medical staff bylaws address what hearing rights, if any, the hospital offers members who are affected by the initiation or ongoing existence of an exclusive contract. This sample bylaws language will help you get started.