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.