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A physician practicing in a medical institution such as a hospital or office shares malpractice liability with the facility in which he or she practices. Physicians in institutions are covered under their own private medical malpractice insurance, and also answer to the board of trustees through the hospital director or administrator. The representatives and owners of the hospital as a collective are also responsible for the physicians which work in their institutions.
Institutions liability comes into affect when a patient treated in a facility
is neglected or harmed by a negligent act on behalf of the institution itself.
This means that the act of harm must have been caused by a factor in the
facility other than the physician who was treating the patient. If a
physician causes injury to a patient through negligence or intent, he or she is
solely responsible and assumes the cost under his or her medical malpractice
insurance. However, in cases where direct fault cannot be attributed to
the physician-patient contact, the treating institution assumes liability,
covering the damages under its own liability insurance. It's important to
note that liability insurance for institutions is paid for directly by the
facility owner or board of trustees/shareholders.
Physicians in institutions operate under the principle of shared liability with their facilities. For example, the court in charge must review the case in order to determine whether or not a
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