Difficult to Dispose of "Apparent Agency" Claims Against Hospitals

Following the recent decision by the Indiana Court of Appeals in Helms v. Rudicel, M.D., et al. (Ind. Ct. App. 2013), it remains extremely difficult to dispose of an "apparent agency" claim based on the actions of physicians who practice within a hospital as independent contractors - not employees. The Court of Appeals referenced the Indiana Supreme Court's decision in Sword, which establishes that,"A hospital will be able to avoid liability by providing meaningful written notice to the patient, acknowledged at the time of admission." Therefore, in order for a hospital to have the best opportunity to avoid liability based on apparent agency by providing "meaningful written notice," it's written notice to all patients should explicitly state that the hospital is not the provider of care, and that the care is being provided by a physician who is an independent contractor and not subject to the control or supervision of the hospital.