ContractGuidelines 22
ContractGuidelines 22
ContractGuidelines 22
The following guidelines for contracts between medical travel facilitators (MTF), their clients
and providers are provided to make you aware of some of the important provisions that should be
included in such contracts. The lists of contract provisions set forth below are not intended to be
exhaustive. Please consult with an attorney to determine which of these provisions is appropri-
ate for your specific contract and for specific language addressing these and other provisions that
may be needed for your contract.
Client Informed Consent and Release. This agreement informs a client of the risks and benefits
associated with receiving medical care abroad, including risks and/or consequences of treatment
and traveling before and after treatment. In addition to standard contract provisions, a Client
Informed Consent and Release (Consent) should include the following clauses:
1.
General Provisions. The Consent should contain clear statements of what the MTF does
and does not provide so there is no misunderstanding of the scope of the coordination
services provided by the MTF. It should also recommend that the client seek independent
advice from a qualified heath care provider.
2.
Warranty Disclaimer. This clause provides that the MTF does not guarantee the services
performed by others, specifically those who provide travel, accommodations and direct
health care services.
3. Limited Liability. This provision provides that the MTF is not responsible for any losses
the client may incur that are caused by anyone outside the control of the MTF.
4.
Limited Damages. This clause provides that the MTF is not responsible for any money
claimed by a client for loss or injury, for any reason, beyond the amount actually paid to
the MTF for coordination services.
5. imitation on Actions. This provision requires a client to assert any claim against the
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MTF within a specified period of time so that the MTF can manage its risks.
6.
Governing Law. Where parties operate in different states or countries, there may be dis-
agreement about the interpretation of a contract. This clause is intended to address under
what law the Consent will be interpreted if a dispute arises.
7.
Dispute Resolution. Where parties operate in different states or countries, there may be
disagreement about where, and under what process, disputes will be resolved. This provi-
sion is intended to address where and how disputes between the parties will be resolved,
such as by the courts or by arbitration.
8. Venue and Jurisdiction. Where parties operate in different states or countries, there may
be disagreement about which courts will hear any claims. This clause addresses where and
in which courts such judicial action would take place.
9. Severability. This provision prevents the entire agreement from being unenforceable if
one provision is determined to be invalid or unenforceable.
10.
Attorneys Fees. This clause specifies who is responsible for paying attorneys fees in the
event a dispute arises.
Client Agreement. This agreement governs the commercial terms between the MTF and the cli-
ent. Because a client will have signed a Consent, it is not necessary to include in the Client Agree-
ment many of the protections contained in the Consent document, resulting in a simpler form
of Client Agreement. That said, in addition to standard contract provisions, a Client Agreement
should include the following clauses:
1. Payment. This provision addresses the amount and timing of all payments due to the
MTF.
2. Informed Consent. The client should specifically acknowledge entering into the Consent.
3.
Assignment. Most contracts are freely assignable, unless stated otherwise. This clause
provides that the Client Agreement may not be assigned to another party. For example,
the MTF may not want the Client to assign its rights and obligations under the agreement
to another party unless the MTF consents to such assignment.
4. Governing Law. Where parties operate in different states or countries, there may be dis-
agreement about the interpretation of a contract. This clause addresses under what law
the Client Agreement will be interpreted if a dispute arises.
Hospital Agreement. This agreement governs the commercial terms between the MTF and the
hospital. In addition to standard contract provisions, a Hospital Agreement should include the
following clauses:
1.
Representations and Warranties. These provisions should contain statements that estab-
lish and guarantee certain contract elements such as accreditation of hospital, licensure
of hospital, and that the parties are operating in compliance with all applicable laws and
regulations.
2.
Indemnification. An indemnification provision requires the hospital to defend the MTF
against any claims, and associated expenses, caused by the hospital. Indemnification pro-
visions can also be mutual, where each party will indemnify the other for any claims and
expenses caused by the other party.
3.
Dispute Resolution. Where parties operate in different states or countries, there may be
disagreement about where, and under what process, disputes will be resolved. This provi-
sion addresses where and how disputes between the parties will be resolved, such as by the
courts or by arbitration.
4.
Venue and Jurisdiction. Where parties operate in different states or countries, there may
be disagreement about which courts will hear any claims. This clause addresses where and
in which courts such judicial action would take place.
5.
Assignment. Most contracts are freely assignable, unless stated otherwise. This clause
describes any restrictions on the assignability of the contract. For example, the MTF may
not want the Hospital to assign its rights and obligations under the agreement to another
party unless the MTF consents to such assignment.
6.
Governing Law. Where parties operate in different states or countries, there may be dis-
agreement about the interpretation of a contract. This clause addresses under what law
the agreement will be interpreted if a dispute arises.
7. Insurance. A key component of risk management for any party is maintaining adequate
insurance coverage. This clause should specify the required types and amounts of insur-
ance.
8.
Severability. This provision prevents the entire agreement from being unenforceable if
one provision is determined to be invalid or unenforceable.
NOTICE
This outline was prepared by the law firm of Squire Sanders (US) LLP as a guide for developing
agreements between medical travel facilitators, their clients and the providers. The outline is not
intended to serve as legal advice relating to individual situations or as a legal opinion concerning
such situations, and does not constitute the rendering of legal advice or a legal opinion by Squire
Sanders (US) LLP to any Medical Tourism Association, Inc. (MTA) member or other person
or entity. Additionally, the use of the outline does not establish an attorney-client relationship
between any person or entity and Squire Sanders (US) LLP. Further, this outline is made available
to MTA members with the understanding that the MTA is not engaged in rendering legal or any
other professional advice.
This outline is subject to change without notice to MTA members. Neither MTA nor Squire
Sanders (US) LLP assume any liability for any errors or omissions or for how this outline is used
or interpreted or for any consequences resulting directly or indirectly from the use of this outline.
For legal advice or any other professional advice, please consult your personal lawyer or the ap-
propriate professional.