Methodist Hosp. v. Halat (Summary)

PHYSICIAN EMPLOYMENT TERMINATION

Methodist Hosp. v. Halat, No. 01-13-00121-CV (Tex. App. Oct. 10, 2013)

The Court of Appeals of Texas affirmed a lower court’s denial of a hospital’s motion to dismiss, finding that a physician’s claims of breach of contract and other claims related to his employment contract were not health care liability claims. The physician accepted a position with the hospital largely due to the benefits offered, including five weeks of paid vacation each year, which were summarized in an employment agreement. After multiple amendments to the employment agreement, the final version provided only one method of termination, a without cause provision that either party could exercise provided that 120 days’ advance written notice was given to the other party.

When the physician sent the hospital his resignation letter, he stated that he was providing 120 days’ notice to terminate the agreement without cause and that he was also applying 680 hours of his accrued paid time off to those 120 days, meaning he would not work any more shifts. In the letter, the physician explained his reasons for resigning, which included not being allowed to use his vacation time and thinking that the intensive care unit was poorly run. The day after the physician sent his letter of resignation, the hospital informed him that it was terminating his employment immediately, for cause, and that he would not receive any further compensation.  The physician sued for breach of contract and the hospital, characterizing the lawsuit as one involving health care liability claims, sought to have the suit dismissed because the physician had not filed an expert report as required by statute.

The court disagreed, holding that the physician’s claims were not health care liability claims, and therefore did not require the physician to file an export report within 120 days after filing suit. According to the court, the physician’s allegations did not concern the “treatment, lack of treatment, or other claimed departure from accepted standards of medical care, health care, or safety or professional or administrative services directly related to health care,” as was required by law for health care liability claims.