Alegent, the owner of a hospital, staffed its emergency room by contracting with Premier Health, which supplied

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Alegent, the owner of a hospital, staffed its emergency room by contracting with Premier Health, which supplied ER physicians from New Century Physicians of Nebraska, each as independent contractors. Though the New Century ER physicians were “seamlessly integrated” in the Alegent health care system and, by all appearances (including their employee ID tags), looked to be part of Alegent, the agreement between Alegent and Premier Health was clear that the parties were independent entities contracting solely for the purposes of the agreed services and that “[n]either of the parties shall have the authority to bind the other or shall be deemed or construed to be the agent, employee or representative of the other.” Podraza’s appendix ruptured after treatment in Alegent’s ER, and Podraza and her husband began talks with Alegent about compensation. Premier Health and New Century did not participate in the settlement negotiations. Alegent and the Podrazas reached a settlement involving forgiveness of the hospital bill and payment of additional money in exchange for which the Podrazas released “the said Released Parties, and all others directly or indirectly liable or claimed to be liable” from all claims and demands. The Podrazas later sued New Century, and New Century moved for summary judgment on the ground that they were protected by the release as third-party beneficiaries. Was New Century correct?

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Related Book For  answer-question

Business Law The Ethical Global and E-Commerce Environment

ISBN: 978-1259917110

17th edition

Authors: Arlen Langvardt, A. James Barnes, Jamie Darin Prenkert, Martin A. McCrory

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