Medical Center ABC is seeking a new group to provide anesthesia services for patients undergoing surgery at the medical center. It advertises in the American Journal of Anesthesia Groups and receives several proposals, including one from Anesthesia Group EFG. EFG proposes to provide all anesthesia services at ABC in exchange for ABC facilitating billing of patients served by EFG. When EFG and ABC meet to approve the final agreement, EFG learns that ABC’s definition of “anesthesia services” only includes physician services and that it plans to continue to hire some of its own Registered Nurse Anesthetists (CRNA). ABC instead contracts with the Pain and Sleep Medical Group (PSMG). Mary is a CRNA who is employed by PSMG and is paid $5,000 per month. Under her contract with PSMG, she provides anesthesia services for patients undergoing surgery at ABC. She is required to maintain her license and to maintain staff privileges at ABC. After several errors in the operating room, ABC revokes Mary’s staff privileges and thus, PSMG fires her. She is unable to find equivalent work for six months and instead takes a temporary job that pays $3,250 per month.
1. Using IRAC (Issue, Rule, Analysis, Conclusion), was a contract formed between ABC Medical Center and Anesthesia Group EFG?
2. Using IRAC (Issue, Rule, Analysis, Conclusion), was the firing of Mary by Pain and Sleep Medical Group a breach of contract?
3. Using IRAC (Issue, Rule, Analysis, Conclusion), assuming that Pain and Sleep Medical Group did breach its contract with Mary, what damages should she receive?