Contract management: legal issues in delegation and supervision

Whatever the justification, the decision of a hospital board to enter into a management agreement is a significant one not to be undertaken without careful deliberation. An important component in that decision is consideration of the managerial functions to be delegated, and this process raises potential legal issues for the hospital trustee. This article examines those issues, identifies questions that a hospital board should address, and suggests some steps that trustees can take to minimize problems.