The Effects of Law on a Medical Practice
A number of laws directly focus on medical practices. These laws can have profound effects on care delivery, paperwork processing methods and business practices within the health care industry. Each of these laws stem from different sources and has different levels of impact on a firm.
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Features
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Medical practices are subject to malpractice liability law. This means that medical practitioners can be sued for mistakes they might make while delivering medical care. In lawsuits that result in compensation, many medical firms must pay large sums to victims.
Size
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According to the Harvard Medical Practice Study, one in 15 patients who claim to receive medical care in a negligent manner are awarded compensation. As of 2009, insurance against malpractice lawsuits accounts for 3.2 percent of a medical practice's costs.
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Significance
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Medical practices are subject to a number of laws regarding drug policy. Oversight groups and law enforcement are responsible for making sure doctors and pharmacists disperse drugs in a professional and legitimate manner.
Considerations
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Privacy laws from the Health Insurance Portability and Accountability Act of 1996 require medical practices to follow certain medical and administrative procedures. Due to these additional activities, facilities must hire more employees, driving up business costs.
Effects
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Due to the volume of cases presented to the courts about medical malpractice and privacy, a medical practice needs to pay insurance to prevent a loss to the business, as well as keep a lawyer on retainer in the event of a lawsuit.
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