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By: Ifunnya Denye Anyene

Hospitals are complex organizations that require careful planning and management to ensure their success. When setting up a hospital, it is essential to involve a lawyer from the inception to provide legal guidance and support. In this article, we will examine why a lawyer should be involved in the setting up of a hospital from its inception.

Legal Requirements for Hospital Formation

The formation of a hospital is a multifarious process that involves numerous legal requirements. Hospitals must comply with federal and state regulations, as well as local zoning laws. Particularly setting up a private hospital in Nigeria can be a bit tasking considering the regulatory requirements and specifications of the different regulatory bodies that oversee medical practice in the country.

Hospitals must also establish legal structures that define their ownership and management. This includes creating a board of directors, developing bylaws, and establishing policies and procedures. Failure to comply with legal requirements can result in penalties and fines, as well as legal liability for the hospital and its owners. This is where a lawyer steps in. By hiring a lawyer when setting up a hospital, the hospital is able to be aware of all legal requirements and comply with them.

Role of a Lawyer in Hospital Formation

A lawyer can play a critical role in the formation of a hospital from its inception. Lawyers specializing in healthcare law have the expertise and experience necessary to navigate the complex legal requirements involved in hospital formation. They can help hospitals establish legal structures that comply with federal and state regulations and protect the hospital’s interests. Here are some key reasons why lawyers are important in the process of starting a hospital:

1. Legal Compliance: Lawyers that specialize in health care law are well-versed in healthcare laws and regulations. They help navigate the complex legal landscape and ensure that the hospital meets all the necessary legal requirements, such as obtaining licenses, permits, and certifications. Compliance with healthcare regulations is essential to avoid penalties, legal disputes, and reputational damage.

2. Contract Drafting and Review: Hospitals engage in numerous contracts with various stakeholders, including vendors, suppliers, healthcare professionals, insurers, and government agencies. Lawyers assist in drafting and reviewing contracts to safeguard the hospital’s interests, negotiate favorable terms, and ensure compliance with applicable laws. They help protect the hospital from potential legal disputes arising from contract breaches or disagreements.

3. Liability and Risk Management: Healthcare facilities face potential liabilities and risks associated with patient care, medical malpractice, employee actions, privacy and data protection, and more. Lawyers work to minimize these risks by developing comprehensive risk management strategies, ensuring proper insurance coverage, and advising on legal protocols to protect patients, staff, and the hospital.

4. Medical Malpractice Defense: Hospitals are at risk of medical malpractice claims, which can be costly and damaging to their reputation. Lawyers specialized in medical malpractice defense can provide guidance on risk prevention, handle malpractice lawsuits, represent the hospital in court, and work towards a fair resolution.

5. Regulatory Compliance and Accreditation: Hospitals must adhere to various regulatory frameworks and accreditation standards to maintain quality patient care. Lawyers help hospitals understand and comply with regulations imposed by government agencies, such as healthcare licensing boards, the National Agency Food and Drug Administration and Control (NAFDAC), the National Centre for Disease Control (NCDC), and others. They assist in responding to audits, investigations, and compliance inquiries.

6. Employment and Labour Law: Hospitals have complex employment structures with various healthcare professionals, administrative staff, and support personnel. Lawyers provide guidance on employment law matters, including contract negotiations, employee benefits, labour disputes, disciplinary actions, and compliance with anti-discrimination laws.

7. Intellectual Property Protection: Hospitals may engage in research, develop new medical technologies, or create unique treatment methodologies. Lawyers specializing in intellectual property can help protect these innovations by securing patents, trademarks, copyrights, and trade secrets. They ensure that the hospital’s intellectual property rights are safeguarded and prevent unauthorized use or infringement.

8. Regulatory Changes and Legal Updates: Healthcare laws and regulations are subject to frequent changes. Lawyers stay updated with evolving legal requirements and assist hospitals in adapting to new regulations. They help interpret and implement legal changes, ensuring ongoing compliance and reducing legal risks.

Lawyers can also play a crucial role in advocating for patients’ rights and ensuring their interests are protected when a hospital is being established. Here are some ways in which lawyers can help patients during this process:

1. Patient Rights and Informed Consent: Lawyers can assist in ensuring that patient rights are upheld during the establishment of a hospital. They can review and advise on policies and procedures related to patient care, privacy, and informed consent. Lawyers can help develop protocols that prioritize patient autonomy, informed decision-making, and protection of sensitive health information.

2. Accessibility and Non-Discrimination: Lawyers can advocate for patients’ rights to access healthcare services without discrimination. They can help ensure that the hospital complies with laws and regulations related to accessibility for individuals with disabilities, language services for non-English speakers, and compliance with anti-discrimination laws. Lawyers can also address issues related to equitable healthcare delivery and fair treatment for all patients.

3. Patient Advocacy and Dispute Resolution: Lawyers can act as advocates for patients who may face challenges or disputes during the establishment of a hospital. They can help patients voice their concerns, navigate grievance procedures, and seek resolution for any disputes related to patient care, billing, or quality of services. Lawyers can represent patients in negotiations, mediation, or legal proceedings if necessary.

4. Privacy and Data Protection: With the increasing use of electronic health records and digital healthcare systems, patient privacy and data protection are critical concerns. Lawyers can ensure that the hospital implements robust privacy policies and safeguards patient data in compliance with applicable laws, such as the Health Insurance Portability and Accountability Act (HIPAA) or other data protection regulations. They can also advise patients on their rights regarding the collection, use, and disclosure of their health information.

5. Medical Billing and Insurance: Lawyers can assist patients in understanding medical billing practices, insurance coverage, and resolving disputes related to billing and reimbursement. They can review billing statements, negotiate with insurance providers, and help patients navigate complex insurance policies. Lawyers can also provide guidance on potential financial assistance programs or resources available to patients.

6. Medical Malpractice and Patient Safety: In the establishment of a hospital, lawyers can work to ensure that patient safety measures are in place and that the hospital adopts best practices to prevent medical errors and negligence. They can assist patients in cases of medical malpractice, helping them understand their rights, gathering evidence, and pursuing legal action if necessary.