First Healthcare Compliance CONNECT September 2022
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
hold harmless or safe, harmless. So, let’s step back<br />
for a moment. So typically, first, before you draft an<br />
indemnification provision, you want to make sure<br />
that you have an appreciation of a variety of different<br />
state laws, whether it is derived from common law,<br />
or whether it is like California set forth in a statute.<br />
Typically, the way a lot of indemnification provisions<br />
are written are to indemnify defend and hold<br />
harmless. And if you don’t have that exact language,<br />
depending on the jurisdiction that you’re in, you may<br />
or may not have to defend someone and pay for<br />
those costs.<br />
You asked me how I would draft one of these. And<br />
it’s so specific to the facts and circumstances<br />
in general that I’m trepidatious just to throw out<br />
any language surrounding that, but I will say that<br />
it’s important to appreciate the significance of an<br />
indemnification provision and some indemnification<br />
provisions. I read and I’m like, “Oh my gosh, I would<br />
not advise anyone to sign that it’s because it’s so<br />
one sided, that only one party is held harmless.’ And<br />
in the event of a breach regardless of whether or not<br />
for example, a business associate cause the breach<br />
some of these endemic indemnification provisions<br />
read that the business associate is responsible for all<br />
of the costs. So that should be one of the provisions<br />
that any person reads very, very carefully, because<br />
it could contradict with your other contracts that you<br />
have in place.<br />
B, you could be shouldering all of the liability even if<br />
you’re not responsible for the breach or the bad act.<br />
When I write them, I typically make them mutual that<br />
if one is being indemnified, the other one’s going to<br />
indemnify if they’re at fault. So mutual defend is the<br />
key term that I discuss with the party. And typically,<br />
the party will go back to the other entity if they are<br />
in a negotiation. And oftentimes, they’ll say, “You<br />
know what, we’ll just agree to be responsible for<br />
Referral Appreciation Program<br />
Receive a $50 gift card* when you refer a client!<br />
<strong>First</strong> <strong>Healthcare</strong> <strong>Compliance</strong> is delighted to offer<br />
a Referral Appreciation Program to say thank you<br />
for helping us to continue to grow. For each new<br />
1st Professional or 1st Premium client originating<br />
from a referral, <strong>First</strong> <strong>Healthcare</strong> <strong>Compliance</strong> will<br />
provide a $50 gift card as a token of appreciation.<br />
LEARN MORE<br />
10<br />
Panacea <strong>Healthcare</strong> Solutions LLC © <strong>2022</strong>