Laporan Penelitian_The impact of asymmetric information in medical services: A study in progressive law

Abstract

The relationship between doctors and patients is seen as a therapeutic contract. The medical practice should be based on good intentions, that is, to help patients using their knowledge underpinned by the Hippocratic Oath, the code of medical ethics, and professional standards. The dominant position of physicians leads to asymmetric information and professional misconduct called supplier-induced demand, which may harm patients. This research aimed to examine the implications of asymmetric information towards the doctor-patient relationship in medical services, the implications of asymmetric information towards therapeutic transactions between doctors and patients, and required measures to give protection to the loss party in therapeutic transactions. This study used the juridical-normative approach, secondary data as the main data, progressive legal theories, and principles and doctrines in the contract law. This research revealed that the doctor-patient relationship, which should reflect the mutual participation model, still reproduced paternalistic relationships which might interfere the enforcement of patient autonomy and violate the principle of duty-based ethics. Doctor moral hazard which reflects supplier-induced demand showed that doctors might persuade patients, leading to potentially inappropriate medical care. In the case of loss, breach of contract and an act against the law in the contract law could not be used because it occurred in the pre-contractual stage. Thus, the construction of abuse of circumstances was used so the doctrine of undue influence could be applied as a basis of contract cancellation. Keywords: Asymmetric Information, Therapeutic Contract, Doctor-Patient Relationship, Progressive Law