NATURE OF LIABILITY OF HOSPITALS

Hospital is a facility devoted primarily to the diagnosis, treatment and

care of individuals suffering from illness, disease, injury or deformity, or in
need of obstetrical or other medical and nursing care. It shall also be
construed as any institution, building or place where there are facilities and
personnel for the continued and prolonged care of patients. 1 In the
Philippines, it may be either public, such as those governed by the State or
private maintained and operated by private individuals or corporations.
One of the difficulties in establishing liability in cases involving an injury to a
patient is that no law directly provides for the liabilities of the hospitals in
cases of medical negligence. Primarily, a hospital, while considered a
healthcare provider, is not a practicing medicine. While the Medical Act of
1959 describes and enumerates the obligations of a physician to a patient, it
does not however define the relationship of a hospital to a patient. Worthy to
note however, under the Department of Health Administrative order, for the
licensing requirements of a hospital, it recognize, under the general terms,
that hospitals have duties to mind the safety of their patients. 2
The prevailing principle in order to establish hospital liability is that a hospital
may be considered negligent if it has a duty and it has breached that duty
and that breach causes an injury to a patient. Proof of negligence remains a
crucial factor.
Many courts now allow claims for hospital vicarious liability under the
theories of respondeat superior, apparent authority, ostensible authority, or
agency by estoppel.3 This is brought about by an increase in hospital liability
for medical malpractice.

1 RA. 8344 Section 2(d)

2 Department of Health, Administrative Order No. 147, Series of 2004 Section 9
3 Levin, Hospital Vicarious Liability for Negligence by Independent Contractor
Physicians: A New Rule for New Times, October 17, 2005