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In: Nursing

Describe why exclusive contracts are so controversial in healthcare

Describe why exclusive contracts are so controversial in healthcare

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Expert Solution

Question: Describe why exclusive contracts are so controversial in healthcare?

  • Exclusive contracts are the agreements that are generally made between a Hospital and a physician/ anesthetist. A physician is required to provide specific and exclusive services to the hospital. He/ she in no circumstances is permitted to work for any organisations.
  • Exclusive contract allow organizations to contrat with physician and/ or medical groups to provide specific services to the organizations.
  • Exclusive contracts may also be effective in protecting a Hospital’s time and investment from imitators. Despite potential positive returns on exclusive contracts, negative effects are also possible and have been extremely prevalent in recent years.
  • Physicians who seek to practice at organisations in these ancillary areas but who are not part of the exclusive group have attempted to invoke the federal antitrust laws to challenge these exclusive contracts.

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