Concord Med. Grp., Inc. v. Dallam-Hartley Cntys. Hosp. Dist. — Nov. 2015 (Summary)

BREACH OF CONTRACT – RESTRICTIVE COVENANT

Concord Med. Grp., Inc. v. Dallam-Hartley Cntys. Hosp. Dist.
No. 07-14-00297-CV (Tex. App. Nov. 24, 2015)

The Court of Appeals of Texas reversed summary judgment that had been granted to a hospital in a lawsuit brought by its previous ED group. The contract between the hospital and the ED group contained a provision restricting the hospital’s ability to allow the group’s physicians to work with the hospital independent of the medical group. Nevertheless, when that contract ended, the hospital allowed physicians who had worked under that contract to continue to work at the hospital pursuant to a different contract executed between the hospital and another group. The ED group alleged that this constituted breach of contract.

In overturning summary judgment for the hospital, the court rejected the hospital’s emphasis on whether the doctors were employed by the hospital – noting that the language of the contract demonstrated that it applied not only to employment of the physicians, but also to any “work” performed in the hospital.