What are the implications of “indemnification” or “hold harmless” clauses in managed care contracts?
Indemnification or hold harmless clauses usually contain language requiring the physician to indemnify and defend the MCO from and against all loss, damage, liability and expense, including reasonable attorney’s fees related to acts and omissions of the physician. Thus, if any claim is made against the physician that involves the MCO, the physician will have complete responsibility for any cost the MCO incurs, even if the physician ultimately has no liability. Physicians should be very wary of these clauses because most professional liability policies will not cover or defend a person who is not party to the policy and the physicians will be personally responsible for theses costs.
