In H Carl McCall, Trustee of the New York Common Retirement

question 34

Multiple Choice

In H. Carl McCall, Trustee of the New York Common Retirement Fund, et al., Derivatively on Behalf of Columbia/HCA Healthcare Corporation v. Scott, suit was brought claiming a breach of fiduciary duties by the board with regard to alleged fraudulent billing practices. The board defended by citing the corporate charter, which limits the liability of directors for breach-of-duty claims as long as they did not act in bad faith. The court determined that:

• A) an inclusion in the charter limiting liability for fiduciary duties owed is void as it is against public policy.
• B) the board lacked the necessary experience to understand the nature of the practices but did not act in bad faith, so the charter inclusion would act to shield the board from liability.
• C) the board ignored direct and indirect signs pointing to the fact that fraudulent practices were occurring and its failure to investigate breached its duty of care.
• D) the shareholders suit was improper as a derivative action and needed to be filed as a direct action.

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Definitions:

Medication Usage

The act of using drugs or remedies to treat or manage diseases or medical conditions.

Medication Event Monitoring System (MEMS)

A technology used to record the time and date of opening a medication bottle, helping to monitor patient adherence.

Patient Self-Report

A method of data collection where patients provide information on their health, symptoms, and treatment outcomes, often via questionnaires.

Rate of Adherence

The extent to which a person's behavior in taking medication, following a diet, or executing lifestyle changes corresponds with agreed recommendations from a healthcare provider.