Quality Control, Enterprise Liability, and Disintermediation in Managed Care

Abstract

The authors examine the potential of enterprise liability for managed care organizations in light of current health-care finance realities. They conclude that, despite the recent trend toward more loosely structured managed care organizations, such as disintermediated or patient-directed plans, plan-based enterprise liability best serves the goal of reducing medical injury by permitting a focus on entities with sufficient scope to translate liability pressure into support for systemic risk-reduction measures. Advancing plan-based enterprise liability in an era of disengaged managed care organizations will require an extension of tort liability to firms with little control but much influence over their business partners.