Orthodontists at an annual state meeting agreed to charge the parents of each child patient a
nonrefundable fee of $200 before beginning any treatment. They also agreed that the charge for an
orthodontia procedure would not be less than $2,000.
Analyze the legality of these agreements, citing the applicable law(s) and the appropriate legal analysis
under the applicable law(s) as developed by the courts. What are the possible sanctions if there are legal
violations? (25 points) (A 1- to 2-page response is required.)
Business Law
BUSINESS LAW 2
The Waiver and arbitration agreement of Orthodontist are that patients are supposed to
sign a contract before the beginning of any treatment. These contracts specify the rights the
patients have to recover in case of any damages caused during the process of treatment. However
this contracts at times limit the way that a patient can file a reasonable personal injury lawsuit.
Besides recovery for damages, the contracts also include the terms of payments. Most
Orthodontist will charge a non-refundable fee once records have been done (POULTON, et al.,
2005) . They also require payment in full before commencing treatment. Other times, the
treatment fee may fluctuate and this causes the payment of the patient to go high as well.
Cases of unfair billing practices have been reported. Where an Orthodontist deliberately
overcharges a patient or claims money from the insurance company and the individual. That also
besides the treatment malpractices can be included in them and it automatically entitles a victim
to damages (POULTON, et al., 2005) .
Dental fraud is an intentional act of deception and misinterpreting the facts about
treatment so as to gain unauthorized advantages. The billing for services not provided for is
unlawful and some dentists have become victims of copayments and waiving of coinsurance.
This makes insurance companies incur expenses they would not have (POULTON, et al., 2005) .
The premium costs for the policy holders also shoots up. Most insurance companies and the
government healthcare do not allow providers to waive patient’s deductibles.
The sanctions that the law gives incase of the violation of the normal methods of
treatment are, exclusion from the places of work and even in the health-care programs and
enormous fines. Since these are not crime violations, a jail term is not among the possible
sanctions. That the plaintiff obtains a standing to sue since they are entitled to damages
(POULTON, et al., 2005) .
BUSINESS LAW 3
BUSINESS LAW 4
References
POULTON, D., VLASKALIC, V. & BAUMRIND, S., 2005. Treatment outcomes in 4 modes of
orthodontic practice.. Journal of Am. J. Orthod. Dentofacial Orthop., 127(3), pp. 351-354.
