WHAT IMPACT WILL THE CORONAVIRUS (COVID-19) HAVE ON YOUR BUSINESS?
With the international spread of Coronavirus and the influx of local cases, individuals and companies must consider how their company may be impacted, as well as how they should prepare to handle this crisis. Among the issues to evaluate, are whether contractual obligations will be enforceable if it is not possible or practicable to perform.
Whether there is a state of emergency declared in your area, an infected employee at your company, or a self-quarantine policy in place, it is likely your business will be required to react to the crisis and develop alternative plans to continue your business and meet your company’s obligations. Depending on the language in your contracts, your performance may be excused. Many contracts contain a force majeure provision that excuses performance in the wake of unforeseeable events. Force majeure events historically included hurricanes, floods, earthquakes, and other “acts of God”, as well as war, terrorism, civil disorder, labor strikes, medical epidemics and outbreaks. However, not every category set forth is necessarily contained, or described specifically, in each contract. Therefore, it is important to analyze your existing contracts, and determine what steps, if any, you need to take to avoid the potential for litigation and/or liability. For example, if your business can continue with limited interruption by having employees work remotely, it may be beneficial to notify your customers that you are still able to fulfill their needs. Affirmatively notifying customers of your ability to perform the services is not just a wise step in maintaining customer relationships, but also an important step in potential litigation in a claim for breach of contract. Likewise, companies who cannot perform, may find themselves subject to a lawsuit and the need to navigate the language of a contract and advocate for excusal of performance. It is beneficial to have a knowledgeable attorney review your existing contracts and provide guidance on what you can do to mitigate your potential damages. It is also worthwhile to consider what changes should be made to your existing and/or future contracts to protect your interests.
HOW CAN YOU EVALUATE YOUR LIABILITY AND OBLIGATIONS FOR SUCH IMPACT?
It is without doubt that the Coronavirus has and will cause massive economic harm. In the event you cannot provide the services required of your customers, your company will sustain a loss of revenue. The inability to perform the services for your customers, may also stem from other parties’ inability to perform. For example, if you require supplies from a vendor who cannot deliver, you may not be able to perform your services and will suffer damages. The need for competent counsel familiar you’re your underlying business is mandatory. Frier Levitt attorneys understand the business of healthcare providers and the impact issues, such as Coronavirus, have on the business.
Business loss may include loss of patients, inventory, files, equipment, and the inability to continue operating the business. Other potential losses include the loss of payor contracts, adverse impact on wholesaler and distributor arrangements, licensing issues and prescription audits (including refill too soon discrepancy). Frier Levitt is best-suited to assist you in recovering from these losses.
How Frier Levitt Can Help
Reviewing contracts can be overwhelming and confusing. Frier Levitt has experience in examining contracts and challenging or enforcing them in Court. Navigating these issues should not be a distraction from healthcare providers’ primary role of providing care to patients. Frier Levitt can assist in determining how to proceed in the wake of this epidemic, including challenging or defending any contract disputes with payors, wholesalers, as well as any regulatory issues stemming from Coronavirus and other events.
Businesses must be aware of, and comply with, all filing deadlines, as well as compiling and producing all documents evidencing the loss.
For payor or regulatory issues, Frier Levitt can guide you on any disaster recovery practices you will need to implement in order to avoid losses of contracts and/or licensing issues. Many regulatory agencies and health insurance companies have announced certain changes aimed at mitigating the impact on providers and patients.
Frier Levitt is here to assist your recovery and maintain the success of your business. Frier Levitt will review your contracts at no cost, and often can handle your claims on Alternative Fee Arrangements. Contact us to learn how we can help you.
