Definition extracted with permission from American Academy of Family Physicians: Family Physicians and Managed Care
A clause frequently found in managed care contracts, whereby the HMO and the physician hold each other to be not liable for malpractice or corporate malfeasance if either of the parties is found to be liable. This language does not preclude a managed care company from being sued if one of its physicians is sued. It may also refer to language that prohibits the provider from billing patients in the event a managed care company becomes insolvent. State and federal regulations may require this language.