The provider contract between the Ocelot Health Plan and Dr. Enos Zorn, one of the health plan's participating providers, is a brief contract which includes, by reference, an Ocelot provider manual. This manual contains much of the information found in Ocelot's comprehensive provider contracts. The following statements are about Dr. Zorn's provider contract. Select the answer choice containing the correct statement.
A) All statements in the provider contract shall be deemed to be warranties, because all statements of facts contained in the contract must be true only in those respects material to the contract.
B) Because the provider manual is part of the contract, Ocelot must make sure that its provider manual is comprehensive and up-to-date.
C) Because the provider contract is a brief contract, Ocelot most likely is prohibited from amending the contract unilaterally, even if it gives Dr. Zorn advance notice of its intent to amend the contract.
D) Areas that should be covered in the provider manual, and not in the body of the contract, include any specific legal issues relevant to the contract.

Question

Quizplus · Accepted Answer

Since the provider manual is incorporated by reference into the contract, Ocelot has an obligation to ensure that the manual is comprehensive and up-to-date. This means that the manual must contain all the information necessary for Dr. Zorn to fulfill his obligations under the contract. If Ocelot fails to meet this obligation, it could be in breach of the contract.

A is incorrect because not all statements in the contract are warranties. Only statements of fact that are material to the contract are considered to be warranties.

C is also incorrect because the fact that the contract is brief does not necessarily mean that Ocelot is prohibited from amending the contract unilaterally. The extent to which Ocelot can amend the contract will depend on the specific terms of the contract itself.

D is incorrect because the provider manual is not the appropriate place to address specific legal issues. Legal issues should be addressed in the contract itself.

The Provider Contract Between the Ocelot Health Plan and Dr