Gag Clause In Managed Care

A gag clause is a clause mainly familiar in managed health care organizations whereby it is included in a physician’s contract which bars him or her from being open with the patient about the terms of the patients’ therapeutic option and coverage terms
The gag clause is important in managed health care because the patient has to hold the physician harmless and not liable in case of anything happening. The gag clause provides for a mutual contact between the patient and the physician in which they will hold each other harmless in case of liability arising from their conduct. The option of deselecting of a physician in the gag clause makes the physician to be more focused to offer better treatment to patient lest they risk being fired.