The Texas Hospital Association’s publication “The Scope” has published an article by Marc Gravely that highlights how Texas hospitals can benefit from contingency fee agreements.
The article, “Contingency Fee Agreements May Be the Right Prescription,” details ways these agreements can help a hospital’s bottom line in the event construction or insurance professionals fail to meet the standard of care.
In the article, Mr. Gravely discusses the recent surge in hospital expansions and the issues a hospital could face if something goes wrong during construction. But whether the issue is poor design, builders who cut corners or subcontractors who ignore specifications, Texas law does provide remedies.
While hospitals may resist litigation because of cost, he said, the law allows legal fees to be paid on a contingency basis. In other words, no fee will be paid unless the lawyer obtains a recovery for the hospital.
“The crucial aspect of this arrangement for both private and public entities is that it allows the hospital board and administration to pursue the remedies available under the law without affecting the facility’s budget,” writes Mr. Gravely. “Essentially, it is a treatment with minimal adverse side effects.”
To read the full article, click here.