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Contracts in the Medical Context

By Amy Kolczak
November 27, 2007

In addition to claims for medical negligence, medical professionals and the facilities for which they work may be exposed to claims for breach of contract based on a theory that patients are third-party beneficiaries of contracts between medical facilities and their physicians. Such actions may lead to liability for physicians who have no direct relationship with the patient at issue, but careful drafting of agreements between facilities such as nursing homes and hospitals and their physicians may prevent patients and their lawyers from bringing successful third-party beneficiary breach of contract claims.

Between Two Parties, or More?

The basic principles of contract law would not seem to allow a breach of contract action by someone who is not a party to the contract. Kaesemeyer v. Angiogenix Inc., 278 Ga. App. 434 (2006) ('It is axiomatic that a person who is not a party to a contract is not bound by its terms. In addition, [t]he doctrine of privity of contract requires that only parties to a contract may bring suit to enforce it.')

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