The context of this article is the healthcare industry. The new healthcare reform, Affordable Care Act, requires that al healthcare organizations that receive reimbursements from the federal government require electronic medical documents. Currently, only approximately 17% of all medical records are electronic. (McVicker,2011, p.224) The implementation of the change from paper to electronic clinical documentation and the contracts between medical providers, software designers and IT consultants provide students with an authentic context where multiple parties are involved in a contractual relationship. (2011p.224) Students are put into teams to address possible issues of bread of contract, amend, or preserve the contract. This case study allowed the students to understand how contracts play a deciding role in the success of business partnerships. With the purpose of extending a business relationship students practice negotiation skills. These negation skills discussed performance clauses of the contract and considered effective amendments to that contact. The focus of the case study is Contract management electrohospital consulting services, inc. and sterling hospital the implementation of electronic medical records.
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Major Points.
Electrohosptial's project manager and legal consul reviewed the basic elements of the original contract with the hospital that contained the following points: .
Contract price: Seven million dollars ($7,000,000) to be paid in monthly installments based on applications for payment and percentage of work completed .
• Time of substantial completion: 16 months from date of commencement .
• Scope of work: Defined generally that Electrohospital would "implement the new software" to enable physicians to enter medical documentation directly to the new software (2011, p. 226) .
Sterling Hospital's Project Sponsor is claiming breach of contract based on breach of substantial performance and wants to rescind the contract.