A lawsuit against your nursing home can cause many problems. Your nursing home could suffer major financial damage and the harm to your reputation may never be undone.
Being proactive when it comes to preventing potential lawsuits at your New York nursing home is extremely important.
There are many things you can do to reduce your risk of a lawsuit, and one of these is making sure you have a strong master service agreement.
What is a master service agreement?
A master service agreement is a contract used in situations where you have an open-ended relationship with the other party. Nursing homes have contracts with many other parties, including cleaning staff, medical staff, rehabilitation facilities and construction or maintenance companies.
The purpose of a master service agreement is to agree on terms that you will use for future transactions.
A master service agreement can save you time since when you do negotiate future dealings, you will already have some basic terms agreed upon.
Commonly agreed-upon terms in a master service agreement include ethics, dispute resolution methods, location, terms or warranties.
The best way to use your master service agreement is to create one that every contractor or person you do business with must sign.
Advantages of a master service agreement
A good master service agreement can protect your nursing home from a malpractice lawsuit by including indemnification language. This is language where one party agrees to reimburse the other party in the event of certain types of losses.
A master service agreement is not meant to replace contracts related to a specific project or plan. You will still draft and negotiate those contracts.
Your master service agreement works in conjunction with those contracts. Your basic language and terms are already in place through your master service agreement.
However, you must make sure that terms in your other contracts do not conflict with the terms in your master service agreement. It is best to have an attorney draft and review all of your nursing home contracts.