Informed consent is a fundamental practice in the medical industry. Not only are medical practitioners required to share the benefits of medical procedures, but they must also share the risks. Additionally, patients must understand what they are agreeing to while being allowed to ask the necessary questions for a deeper understanding. Despite how important consent is, significant work must be done to ensure the practice is fully ingrained in the medical industry. This article explores the legal and financial implications of informed consent.
What Is Informed Consent?
It is of utmost importance to understand the legal ramifications of informed consent. However, informed consent is also rooted in ethical standards to safeguard patient autonomy. What is informed consent? It is a process that allows a doctor to share comprehensive details about a procedure or surgery with a patient, and then the patient must agree to the procedure utilizing a consent form. However, it is not as simple as it seems.
Comprehensive details must include the patient’s medical condition, the suggested treatments available, any risks involved, the potential benefits, and if there are any alternatives. This allows the patient to make an informed decision, which is ultimately the goal.
The legal ramifications for failing to obtain informed consent can be as severe as malpractice lawsuits and suspended medical licenses. Additionally, negligence claims can be tabled against doctors, especially where the desired outcome of a procedure has not been met.
Legal Risks With Consequences
Now that we understand informed consent and what it entails, we take a deeper look at some of the key risks and why they happen.
Negligence Claims
Negligence claims are the most common legal consequence of inadequate informed consent. This primarily occurs when a patient is harmed during a procedure they were not fully informed about, or they perceive the procedure as a failure if the desired outcome was not met. For example, a patient is scheduled for Lasik eye surgery with the perceived outcome to be that the patient will have improved, near-perfect vision. However, a known risk is that the surgery can weaken the eye, making it prone to injury. Once the procedure is completed, the patient hurts their eyes and once again struggles to see. This might make the patient think the doctor was negligent if the doctor did not explain this particular risk.
Battery Claims
While all claims are serious, battery claims are often even more worrying. These claims generally occur when a surgery or procedure is conducted without consent or beyond the initial scope. For example, a patient agrees to have their ear cleaned, but the doctor finds a growth and removes it without the patient’s permission.
Breach of Fiduciary Duty
Doctors have a fiduciary duty to act in the best interest of their patients. Fiduciary duty is defined as the legal responsibility to act solely in the best interest of another person. This duty includes providing optimal information so a patient can provide a doctor with the necessary consent.
Financial Implications and Consequences
While it may seem as though consent and finances have nothing in common, there is a direct correlation in the medical industry. When patients are unhappy with a procedure, as explained in some scenarios throughout this article, their first option is often to file a lawsuit. In doing so, the medical practitioner can suffer the following consequences.
Litigation Costs
Litigation is expensive and can become a severe financial strain when doctors must defend against informed consent claims such as negligence. Legal fees, court costs, and potential settlements can significantly impact a medical facility’s finances and ability to practice.
An Increase in Malpractice Insurance Premiums
In some instances, inadequate informed consent issues are deemed fraudulent claims by insurers, which can significantly increase malpractice insurance. Insurers assess the risk associated with the doctor and thoroughly evaluate their claims history. If repeated instances of inadequately informed consent claims arise, this could signal a risk that leads to a higher premium.
Tarnished Reputation Leading to Loss of Business
Word of mouth is a powerful tool in any industry. Medical practitioners and patients speak about experiences, and if said experience is lacking or unethical, this could severely damage the medical practitioner’s reputation. A tarnished reputation can and will most probably lead to fewer patients, ultimately leading to a loss of income.
Some Strategies To Consider
Not only is informed consent an ethical and legal requirement, but it is also a critical aspect of the entire patient care process. As a result, there are some risk management strategies to assist:
- Comprehensive documentation: In today’s technological world, paper-based documentation is unnecessary, leading to errors and other issues. Maintaining accurate patient documentation is paramount. For example, electronic health record-keeping systems are used to manage the entire patient documentation process. There are also financial services many medical facilities utilize and recommend. For instance, we recommend ABA billing if you have an ABA therapy facility. Through billing systems like this, consent forms can easily be created, stored, and signed by patients on these digital systems, aiding with billing.
- Effective communication: Be clear with patients and explain procedures in plain language, which will help them understand much more easily. Also, allow for questions and be sensitive to the fact that a patient might be nervous, which leads to more questions.
- Utilize visual and digital tools: Visual aids, such as brochures and videos, are a wonderful way to explain medical procedures.
- Allow patient decision-making: Give patients the autonomy to make a decision that works for them. Do not force them, but rather be sensitive to their concerns and support them in making an informed decision on their own.
- Stay informed: It is a good idea to stay up to date on medical malpractice statistics. This would give you an idea of where the industry is currently at and help you preempt any issues you might face.
Consent Is the Answer
Informed consent is a legal and ethical consideration for medical practitioners. Patients must feel empowered and educated before they agree to any medical procedure. Failure to obtain said consent leads to negligent and battery claims. However, the legal aspect is but one part to consider. The financial implications are astounding and can quite literally lead to a loss of reputation and business.