Disability Rights N.C. v. Moses H. Cone Mem’l Hosp. Operating Corp. (Summary)

PEER REVIEW PRIVILEGE

Disability Rights N.C. v. Moses H. Cone Mem’l Hosp. Operating Corp., No. 1:11CV812 (M.D. N.C. Jan. 17, 2013)

The United States District Court for the Middle District of North Carolina denied a hospital’s motion to dismiss a lawsuit that had been brought by a state-designated disability advocacy organization, which was seeking injunctive and declaratory relief from the court, to force the hospital to provide it with the medical and peer review records involving a mental health patient who died while restrained.  The advocacy organization was conducting an investigation of the patient’s death pursuant to the authority granted to it by the federal Protection and Advocacy for Individuals with Mental Illnesses Act (“PAIMI”).  The Act provided the advocacy organization with the authority to access records in the course of investigating allegations of abuse or neglect of individuals with mental illness.

The hospital supplied some of the requested records to the advocacy organization, but refused to provide internal investigation reports, claiming the peer review privilege provided under state law protected such reports from discovery and that privilege was not preempted by the PAIMI.  The court rejected the hospital’s arguments, holding that the peer review privilege did not apply at all in this circumstance since it involved an investigation by a federally-authorized agency, rather than a civil action against the hospital.  Second, the court noted that a number of federal appeals courts had interpreted the PAIMI to preempt state peer review statutes and there was no reason for this court not to follow suit.  Noting the unambiguous statutory language of the PAIMI, the court held that it preempted the state peer review statute.  Accordingly, peer review records would be discoverable and, in turn, the hospital’s motion to dismiss was denied.