Sabit v. Abou-Samra – April 2015 (Summary)

ANTI-SLAPP

Sabit v. Abou-Samra, 2d Civil No. B249793 (Cal. Ct. App. Apr. 30, 2015)

The Court of Appeal for California affirmed a lower court’s dismissal of an intentional interference with a contract claim brought by a physician against a hospital. The plaintiff physician was employed at a private clinic and had privileges at the defendant hospital. The hospital summarily suspended the physician while it investigated an allegation that he did not render appropriate medical care to patients. The clinic terminated his employment. The physician brought suit against the hospital stating that the hospital intentionally interfered with his employment contract. The hospital filed a motion to strike the lawsuit under the state’s civil procedure code as a strategic lawsuit against public participation (“SLAPP”). The lower court granted the motion and the physician appealed.

The court affirmed the anti-SLAPP motion holding that this litigation was a challenge to the hospital’s protected free speech. The court explained that the hospital’s suspension of the physician was an activity and speech authorized by state law, and thus was protected activity. Additionally, the physician’s intentional interference with a contract claim failed because he had not established that the hospital knew of his employment contract with the clinic and it acted knowing that the contract would be disrupted.

Valfer v. Evanston Nw. Healthcare – April 2015 (Summary)

PEER REVIEW IMMUNITY

Valfer v. Evanston Nw. Healthcare, No. 1-14-2284 (Ill. App. Ct. Apr. 30, 2015)

The Appellate Court of Illinois affirmed a lower court’s dismissal of a breach of contract claim brought by a physician against a hospital, holding that the hospital is immune from liability pursuant to the state peer review statute. The hospital found that 50% of the physician’s cases lacked demonstrable indication for surgical intervention, and did not reappoint him due to patient safety concerns. The physician brought suit alleging breach of contract and sought monetary damages. The hospital argued that it followed its bylaws and that it was immune under the state’s peer review statute. The court agreed and dismissed the case. The physician appealed, arguing that the hospital was not immune because its acts were willful and wanton, thus it was not protected by the statute.

The court held that the physician failed to plead or prove some type of physical harm, as is required by the statute to prove willful and wanton conduct. The court explained the peer review statute shields a hospital from civil liability unless it acted willfully and wantonly. The statute explicitly defines willful and wanton as a deliberate action that shows a disregard for a person’s safety. Here, the physician failed to plead that his, or any patients’, safety was threatened, thus he failed to show that the hospital’s conduct satisfied the statutory definition of willful and wanton.

Mullen v. Chester Cnty. Hosp. – April 2015 (Summary)

ADA

Mullen v. Chester Cnty. Hosp., Civil Action No. 14-2836 (E.D. Pa. Apr. 30, 2015)

The United States District Court for the Eastern District of Pennsylvania denied a hospital’s motion to dismiss an Americans with Disabilities Act (“ADA”) claim brought by a nurse, holding that a jury could reasonably find that the hospital discriminated against her on the basis of her disability and that it retaliated against her when she filed a lawsuit. The plaintiff nurse suffered from Lupus and a congenital heart defect which occasionally caused her to become dizzy, lightheaded and faint. During one of these instances, the nurse was put into an empty bed and given an I.V. without a physician’s order. The nurse alleged that she was unable to deny this treatment, even though it violated the hospital’s protocol and the state nursing practice guidelines. The hospital investigated the incident and determined that the nurse may have asked for the I.V. or at least consented to the treatment. After the hospital’s investigation, it terminated the nurse’s employment. A month later, the nurse requested paperwork for a lawsuit and the very same day the hospital reported the nurse to the state’s nursing board. The nurse brought suit alleging that she was discriminated against due to her disability and that the hospital retaliated against her by reporting her to the nursing board in violation of the ADA. The hospital moved to dismiss the case.

The court denied the motion and held that this case was to be decided by a jury. The court explained that a reasonable jury could find that the nurse was discriminated against because the hospital’s motivation for terminating her was its belief that she was too sick to work. Furthermore, a jury could find that she was discriminated against because the nurses who administered the care were not terminated. Additionally, the court held that a jury could find that the hospital reported her to the nursing board in retaliation of her starting a lawsuit. The court explained that the timing of both could allow a jury to find that the hospital violated the ADA’s retaliation provision.

Hall v. Flannery – May 2015 (Summary)

PEER REVIEW PRIVILEGE

Hall v. Flannery, Case No. 3:13-cv-914-SMY-DGW (S.D. Ill. May 1, 2015)

The United States District Court for the Southern District of Illinois ruled against a hospital that argued that audit logs for a patient’s medical records were protected by the state’s peer review statute. The plaintiff patient alleged that she received two different medical charts in her medical record during discovery. The plaintiff then requested the audit log of her medical record to determine who had the ability to edit her records. The defendant hospital argued that the medical record’s audit logs are protected by the state’s peer review statute.

The court ordered the hospital to turn over the audit log because audit logs are created in the hospital’s ordinary course of business and not specifically for a peer review committee.

Whitney v. Franklin Gen. Hosp. – April 2015 (Summary)

SEXUAL HARASSMENT/RETALIATORY DISCHARGE

Whitney v. Franklin Gen. Hosp., No. C 13-3048-MWB (N.D. Iowa Apr. 21, 2015)

The U.S. District Court for the Northern District of Iowa granted in part and denied in part a hospital’s motion for summary judgment against claims filed by one of its former employees, a medical records receptionist. The receptionist sued the hospital for sexual harassment, retaliation, and discrimination alleging that the hospital’s medical director had subjected her to sexual harassment over a period of approximately three years, culminating in her termination from the hospital. The receptionist did not report the alleged sexual misconduct while it was occurring, but she did take 12 intermittent weeks of Family and Medical Leave Act (“FMLA”) leave in order to obtain treatment for anxiety, depression, and symptoms of post-traumatic stress disorder. The medical director was eventually fired by the hospital after an investigation revealed that he had sexually harassed at least eight other women. Following his termination in June 2012, the receptionist reported to her superiors that she had been harassed by the medical director as well, from 2006 through 2009, although she had initially characterized their relationship as being a “consensual” one and only two months later reported that the medical director had sexually harassed her.

Following her return from her most recent FMLA leave, the receptionist requested a reduced schedule due to her anxiety and depression. The hospital permitted her to work half days, but did not excuse her additional absences. The hospital explained that the receptionist had not provided enough information about her condition or about her need for additional accommodations. In defense of its actions, the hospital explained that the receptionist had repeatedly displayed issues with attendance, productivity, and professionalism in the workplace. She had received repeated warnings prior to her termination and was even presented with a Performance Action Plan in an attempt to correct the problems before she was ultimately terminated in December 2012. The hospital emphasized that it had no knowledge of the sexual harassment against the receptionist until well after the medical director was terminated, and also insisted that it had legitimate, non-retaliatory reasons for terminating the receptionist.

The court granted summary judgment in favor of the hospital against the receptionist’s sexual harassment claims finding that no reasonable person could conclude that disciplinary actions, including her termination, constituted sexual harassment rather than retaliation, sufficient to render her sexual harassment claims within the relevant 300-day statute of limitations. However, the court denied the remainder of the hospital’s motion, concluding that the receptionist had presented enough evidence to create a genuine dispute of material fact over her remaining claims alleging retaliatory discharge, disability discrimination, and FMLA discrimination and permitted those claims to proceed to trial.

U.S. ex rel. Bellevue v. Universal Health Servs. of Hartgrove, Inc. – April 2015 (Summary)

FALSE CLAIMS ACT

U.S. ex rel. Bellevue v. Universal Health Servs. of Hartgrove, Inc., No. 11 C 5314 (N.D. Ill. Apr. 24, 2015)

The United States District Court for the Northern District of Illinois granted a psychiatric hospital’s motion to dismiss an action alleging violations of the False Claims Act. A therapeutic counselor filed the lawsuit on behalf of the federal government and the State of Illinois, alleging that the hospital had violated both federal and state law when it submitted certain reimbursement claims to Medicaid.

According to the counselor, the hospital knowingly and repeatedly billed Medicaid for patients that exceeded its authorized capacity. Among other things, the counselor stated that he had personally observed adolescents sleeping in the dayroom on rollaway beds instead of being admitted to a regular patient room. The counselor argued that an individual room is an essential part of the treatment provided by the psychiatric hospital, and argued that failure to provide this room was a complete abdication of the obligation to treat patients.

The court disagreed and held that the counselor had failed to provide sufficient evidence to support his contention that an individual room was essential to treatment. The court ruled that even if the hospital had falsely certified that it was giving individual rooms to patients who were actually sleeping in a common room, those facts alone would not be sufficient to establish liability under the False Claims Act. According to the court, absent an allegation that the failure to provide a patient room destroyed the effectiveness of the rest of the treatment provided, the counselor’s allegation that certain patients were deprived of that particular aspect of the services that they were entitled to cannot serve as the basis of a False Claims Act claim. For these reasons, and others, the court granted the hospital’s motion to dismiss the counselor’s complaint.

Mackey v. Sarroca – April 2015 (Summary)

PHYSICIAN-PATIENT RELATIONSHIP/ON-CALL PHYSICIANS

Mackey v. Sarroca, No. 3-13-0219 (Ill. App. Ct. Apr. 27, 2015)

The Appellate Court of Illinois, Third District, reversed a trial court’s dismissal of claims, finding that an on-call urologist’s advice given to the emergency department physician created a physician-patient relationship, giving rise to a professional duty of care.

The on-call urologist was responsible for giving urology advice to emergency room physicians. He was called by the emergency department physician to render advice on a patient who presented to the ED with a 6mm kidney stone. After the emergency room physician informed the urologist of the specifics of the patient’s case, the urologist prescribed a medication to help pass the stone, and ordered a follow-up appointment two days subsequent. The urologist did not admit the patient and did not prescribe antibiotics. A few days later, the patient developed numerous health conditions, including severe septic shock, renal failure, and multisystem organ failure. The patient initially sued only the hospital and emergency department physician, but later added the urologist as an additional defendant, alleging that her conditions were a result of the urologist’s failure to order treatment that would have prevented septic infection.

The court first addressed the urologist’s argument that the claim was not timely filed, finding that the patient did file within two years of discovering the urologist’s breach of professional duty. It was only during a deposition with the emergency department physician that the patient learned of the urologist’s involvement at the emergency department level and his alleged failure to address antibiotic treatment during that consultation. The court determined that the patient had no reason to know of the urologist’s alleged breach of a professional duty of care before that time. Because she filed within two years of discovering the urologist’s involvement, the claim was considered timely.

The court then addressed the issue of what, if any, duty of professional care the urologist owed to the patient. The court determined that the urologist’s level of involvement in the patient’s case fell in the realm of an actual physician-patient special relationship. The urologist was responsible for consultations with the emergency department physician, was compensated for his consultation, was consulted specifically on the diagnosis and medical advice regarding this patient’s case, and was responsible for making decisions over her care. Given these factors, the court concluded that the urologist did engage in a physician-patient relationship that gave rise to a professional duty of care toward the patient. The court reversed the trial court’s granting of a motion to dismiss on these claims and remanded for further proceedings.

Ashkenazi v. S. Broward Hosp. Dist. – April 2015 (Summary)

AGE DISCRIMINATION IN EMPLOYMENT ACT (ADEA)

Ashkenazi v. S. Broward Hosp. Dist., No. 13-15061 (11th Cir. Apr. 23, 2015)

The United States Court of Appeals for the Eleventh Circuit affirmed a district court’s grant of summary judgment in favor of a hospital district regarding age discrimination claims brought by an independent contractor surgeon.

The surgeon provided on-call services at several emergency rooms within the hospital district. In 2012, the hospital district revoked his major surgical privileges and reported him to the Florida Board of Medical Examiners. The surgeon then sued the hospital district, alleging that his privileges had been revoked due to his age, which was a violation of the federal Age Discrimination in Employment Act. However, his assertions were largely dismissed because he was an independent contractor rather than a hospital district employee. The surgeon appealed this determination, arguing that there was a genuine issue of material fact regarding whether he was an employee of the hospital district, and therefore he should be able to bring claims of discrimination and retaliation. He also argued that a Florida law allowed independent contractors to bring retaliation claims, and that the hospital district interfered with his employment relationships with other parties.

The court first reaffirmed the lower court decision that the surgeon was working as an independent contractor for the hospital district. The court disagreed with the surgeon’s assertions that the hospital district maintained a level of control and oversight over his medical services. The surgeon had his own practice, and his services to the hospital district only made up approximately 10% of his practice. Additionally, the surgeon’s written contract with the hospital district expressly stated that he worked as an independent contractor, and was not to be treated as an employee. The court also determined the surgeon’s state law claims were barred by a Florida statute that grants hospital districts immunity in lawsuits arising out of credentialing and peer review processes and that the surgeon could not prevail in this claim that the hospital district interfered with his relationship with third parties, as his claim offered only speculation about a potential relationship with a private party. Because there was not an actual and specific relationship that the district could have interfered with, the court affirmed the dismissal of this claim.

Geisinger Clinic v. Radziewicz – April 2015 (Summary)

RESTRICTIVE COVENANTS

Geisinger Clinic v. Radziewicz, No. 505 MDA 2014 (Pa. Super. Ct. Apr. 24, 2015)

The Superior Court of Pennsylvania reversed a lower court’s ruling and imposed a preliminary injunction on a physician that prevented him from practicing medicine for six months and three weeks within a 15-mile radius of the medical clinic where he had previously been employed. Plaintiff, a medical clinic, hired defendant, a physician, to practice medicine for its family medicine group. The parties’ employment contract contained a non-compete clause that stated that the physician will not practice medicine for two years within a 15-mile radius of the clinic if he terminated the agreement. The physician left the clinic and obtained employment outside of the restricted area for 18 months. The physician’s new employer then transferred him to a location that was within the 15-mile radius. The clinic sued the physician, seeking a preliminary injunction to enforce the non-compete clause until the two years had been satisfied or until the issue had gone to trial. The court denied the clinic’s request, ruling that the clinic could be adequately compensated by monetary damages, that the clinic would not likely prevail at trial, and that a greater injury – the loss of the physician’s livelihood – would occur if it imposed the injunction.

On appeal, the trial court decision was reversed and the preliminary injunction was imposed. The court stated that the clinic would not be adequately compensated through monetary damages because the non-compete clause was entered into to prevent a potential loss, rather than an actual loss, and this intent must be complied with by enforcing the agreement. Next, the court explained that there was a valid agreement between the parties, and the physician clearly breached that agreement, thus the clinic would likely prevail at trial. Lastly, the court held that no greater harm would result if it imposed the injunction because the physician had already worked outside the area for a year and a half, and failed to show why that arrangement could not continue.

Click Here to read Dissenting Opinion

Ass’n for Disabled Ams. Inc. v. Reinfeld Anderson Family, Ltd. – April 2015 (Summary)

ADA – ACCESSIBILITY ISSUES

Ass’n for Disabled Ams. Inc. v. Reinfeld Anderson Family, Ltd., No. 1:12-CV-23798 (S.D. Fla. Apr. 21, 2015)

The United States District Court for the Southern District of Florida denied a physician’s motion to dismiss an Americans with Disabilities Act (“ADA”) lawsuit filed by a former patient finding that the patient had standing to sue and was entitled to discovery to prove that he was retaliated against when the physician terminated their patient-physician relationship. Plaintiff, a disabled, wheelchair-bound patient, visited the private offices of defendant, a physician. The patient alleged that the physician’s office was not handicap accessible and sued, seeking permanent injunctive relief under the ADA that would require the physician to make his office ADA-compliant. After the patient filed the lawsuit, the physician terminated the patient-physician relationship, informing the patient that the lawsuit he filed created a conflict of interest such that the physician could no longer treat him. The trial court initially dismissed the lawsuit, finding that because the physician-patient relationship had been terminated, the patient did not have standing to seek the injunctive relief as the patient no longer had any intent of returning to the physician’s office. Subsequently, however, the patient amended his complaint to add an allegation of retaliation under the ADA on the basis of the termination of the physician-patient relationship.

Upon reconsideration, the court denied the physician’s motion to dismiss and allowed the patient’s claims to move into discovery. The court explained that it had been error to dismiss the suit due to lack of standing given that the issue of standing is reviewed when a complaint is filed, and that the patient-physician relationship had not been terminated until after the filing of the complaint. Additionally, under the ADA, a plaintiff must only intend to return to the alleged non-compliant building in the future in order to seek an injunction, which is a very liberal standard. The court also determined that the patient properly pled that he was retaliated against under the ADA when the physician terminated their patient-physician relationship. The patient only had to allege that the termination of the patient-physician relationship was not “wholly unrelated” to his ADA protected activity, the filing of his lawsuit, which can be shown by a temporal proximity. The court did note that discovery may ultimately show that their patient-physician relationship was terminated due to a non-retaliatory reason – the conflict of interest created by the ongoing lawsuit – but at this point in the litigation the claim could not be dismissed.