What Is the Patient / Provider Healthcare Contract?

The authority to deliver healthcare services to a patient derives from a contract. This patient contract may be in the form of a signed consent-for-treatment form, or it can be as simple as a patient saying, “Please give me health care, and I will pay you.”

The healthcare contract may also be established via provider employment. For example, a paramedic who is employed by a health delivery system (EMS) has an implied contract with patients through his or her employment. However, this healthcare contract does not extend to non-working hours. Similarly, nurses employed by hospitals have the same automatic contract when performing their job duties.

A health care contract can be terminated at any time by either the patient or their legal agent. A legal agent is a person has the authority to act on behalf of the patient. This designation must be legally established through being assigned durable power of attorney for health care. Most states have laws or administrative rules delineating the process of making the assignment; and many states provide pre-printed forms. A court has the authority to terminate the contract.

Remember that caution must be exercised in regard to the patient’s ability to understand their actions. A disoriented patient may not fully understand the patient contract for which they are consenting, and thus may require protection from the health care provider. That is why assigning a trusted representative durable power of attorney for health care is the safest and most effective way to assure that the patient’s care is in accordance with what the patient wants.