Gentilello v. Univ. of Tex. S.W. Health Sys. (Summary)

SOVEREIGN IMMUNITY

Gentilello v. Univ. of Tex. S.W. Health Sys., No. 05-13-00149-CV (Tex. App. Mar. 24, 2014)

The Court of Appeals of Texas affirmed a trail court’s ruling that a hospital had sovereign immunity in a physician-employee’s claim alleging that adverse personnel actions were taken in retaliation for his good faith report about the hospital’s billing practices that allegedly violated Medicaid patient care requirements.

The physician held multiple titles and positions at the hospital, and contended that after he brought concerns regarding the hospital’s billing practices to its attention, he was stripped of his positions and received an unsatisfactory review and a pay cut.  The physician brought federal and state qui tam actions against the hospital, both of which were settled, and under the terms of the settlement agreement, the physician was allowed to reserve his right to maintain his retaliation claim under state law.

After the settlement, the hospital asserted that since it is a state entity, the physician’s retaliation claim is barred by sovereign immunity, and the trial court agreed.  On appeal, the physician’s contention was that the language of the settlement agreement indicated that the hospital waived its sovereign immunity; however, the appeals court found that the agreement did “not contain clear and unambiguous language waiving sovereign immunity.”  The physician also argued that the hospital waived sovereign immunity by its “extraordinary, egregious, and inequitable” conduct; however, the appeals court also declined to conclude that a state entity, such as the hospital, could waive sovereign immunity by its conduct.