Medical care businesses and practitioners enter into many contracts, including
leases and other property transactions. A common example is a contract of
employment between a managed care company and an individual medical care
practitioner. The employer promises to pay the employee a given amount and
promises to employ the person for some period of time unless the employee
performs unsatisfactorily. The employee agrees to provide certain services and
often agrees to not work for other managed care companies in the area for
some time after the termination of the employment agreement.
Civil litigation could be used for resolving disputes under this contact.
Employees who claim to be improperly terminated can sue for reinstatement
and lost pay. The employer can sue to enforce the contract and prevent the
employee from working for a competitor. In this case the court might pay the
employer a given sum of money to compensate it for the employee’s violation
of the anticompete agreement, or the court might prevent the employee from
continuing in the job.
Many contract disputes that involve the sale of goods or other commercial
transactions are governed by the Uniform Commercial Code (UCC), a set of
uniform laws adopted by all the states that facilitate the quick resolution of
simple business disputes. The UCC establishes the general terms of the
agreements for covered transactions and the measure of damages if the
agreement is not properly carried out. While patient care services are not
subject to the UCC, many ancillary transactions are.