McDonnell v. Cardiothoracic & Vascular Surgical Assoc.

PHYSICIAN RECRUITMENT

McDonnell v. Cardiothoracic & Vascular Surgical Assoc.,
No. 04-4151, 04-4509 (6th Cir. Jan. 31, 2006)

The United States Court of Appeals for the Sixth Circuit
affirmed summary judgment in favor of a hospital and physician group that were
sued for fraud, breach of an employment agreement and intentional interference
with contractual relationships by a physician who had been recruited by the
physician group. The recruit claimed that the defendants had fraudulently induced
him to sign the employment agreement by failing to inform him that he would
also be required to sign a physician recruitment agreement and promissory note.
The court rejected the physician’s claim that the physician recruitment agreement
violated the Stark Law and the Antikickback Statute, agreeing with the federal
district court that it would have been illegal for the hospital to provide
recruitment assistance to the group without such a recruitment agreement and
promissory note.