Smith Vs Hosp Case Study

According Smith v. St. Francis Hosp., Inc., 1983, “Apparent authority results from a manifestation by the principal to a third person that another is his agent. The manifestation may be made directly to the third person or to the community at large by signs or advertising. But, "apparent authority exists only to the extent that it is reasonable for the third person dealing with the agent to believe the agent is authorized." Under the law, it is generally accepted that the principal or employer is liable for all the acts of the agent or employee even when someone who isn't legally an agent for organization is given authority by the principal to engage in actions for the organization. The principal or the organization will still be liable for …show more content…
It can be done by creating an environment where physicians can be productive and grow their practices by using a disciplined, formal and measurable program, measuring by tracking desired outcomes, such as referrals and physician satisfaction” (Rochell Pierce, vice president of physician relationship management at Aegis Health Group of Brentwood, Tenn.,)
• Align financial incentives and liability exposure for hospitals and physicians to improve physician accountability for appropriate use of hospital resources.
This will ensure that physicians are competent and uphold the goal-based incentives set forth by the hospital. For hospitals and physicians to collaborate well, there must be “trust”. Having physicians at the table making data-driven decisions is the key to foster their relationship; since they will hold each other accountable for those decisions and making it work together in a collaborative relationship and, ultimately, build a foundation of trust. (Debra Wood,