IHS 3112 Chapter Notes - Chapter 8: Ultra Vires, False Advertising, Chief Executive Officer
Document Summary
Legal and ethical issues in the health care setting are being carefully scrutinized across the nation by state and federal regulatory agencies. The typical health care organization is incorporated under state law as a freestanding for-profit or not-for-profit corporation. Generally, the authority of a corporation is expressed in the law under which the corporation"s article of incorporation. The existence of this authority creates certain duties and liabilities for governing bodies and their individual members. Members of the governing body have both express and implied corporate authority. Express corporate authority: authority specifically delegated by statute. Health care corporations derive authority to act from the laws of the state in which they are incorporated. Implied corporate authority: authority to perform any and an acts necessary to exercise a corporation"s expressly conferred for which it was created. Generally, implied corporate authority arises where there is a need for corporate powers not specifically granted in the articles of incorporation.
