Healthcare Law Options in By

This allows for the maintenance of a Network price list, as stipulated in the Physicians version of this clause while still tying price (as well as incorporating the discounts) to standard physician charges, as stipulated by the Network. The Physicians current version of the compensation clause is untenable, however, as it limits the freedom of market forces to have their effect on price, which is unfair to the network and will most likely create higher costs to the network and its clients thus eliminating benefits to clients.

Again, the terms of the Physicians version are unacceptable to the Network as it will eliminate any benefit to clients. The affiliation of hospitals with the Network is a possible point of negotiation as long as other hospital services are not charged to the Network.

The Networks indemnity clause creates fair and equal liability, ensuring that physicians and only physicians will be liable for issues related to their care, while the Network and only the Network will be liable for issues related to its practice. This point is non-negotiable.

Without complete assurance of the long-term availability and performance of Network physicians, the Network cannot adequately provide assurance of care to its clients. Under the Physicians terms, they would also be far more free to compete than would the Network, creating an unfair situation and a pricing imbalance. This point is also non-negotiable.


Petersen, L.; Woodard, L.; Urech, T.; Daw, C. & Sookana, S. (2006). Does Pay-for-Performance Improve the Quality of Health Care? Annals.

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