• CASE MODEL: Insurance Contract Capitulation Dilemma  

The dilemma that a medical provider will have to consider when facing the adverse effects of an Hold Harmless Clause is the prospective detriment to his/her practice if he/she does not capitulate to the managed care company’s demand to provide indemnification for a settled malpractice case. The provider has the option to fight the issue in court. But, this is not really a choice; it is a false or Hobson’s Choice.

In some cases, the provider may prevail, but it is likely to be a futile and expensive effort in most scenarios. In any event, if the provider does not indemnify the managed care company, most likely, he/she will find himself/herself de-selected from the panel. Such a de-selection is likely to create a domino effect of de-selection from other panels. Such events could destroy the medical provider’s practice.

-Anonymous Physician/Attorney



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