Litigation by patients as third party beneficiaries of payor-provider contracts.

Abstract

"No third party beneficiaries" clauses, if drafted with care, can offer some measure of protection to providers. Although courts may give minimal weight to "boilerplate" clauses in determining contractual intent, a more detailed and substantive clause may be more persuasive. In drafting such clauses, however, care should be taken to clearly state the specific intentions of the parties, including the scope and purposes of the contract, the identity of the intended beneficiaries, and the classes of persons that are to be excluded as beneficiaries (e.g., HMO enrollees).