[Source: Health Lawyers Weekly, May 30, 2008 (Vol. 6, Iss. 21) - AHLA]
A federal district court ruled May 19 that it lacked subject matter jurisdiction over a physician’s breach of contract and related claims against a hospital that suspended his medical staff privileges following a peer review audit of patient records.
In granting the plaintiff-physician’s motion to remand the case back to state court, the U.S. District Court for the Eastern District of Tennessee concluded the hospital’s potential defense that its actions complied with the federal Health Care Quality Improvement Act (HCQIA), 42 U.S.C. §§11101 et seq., did not confer federal question jurisdiction over the case.
Continue reading
MacManus v. Chattanooga-Hamilton County Hosp. Auth., No. 1:08-cv-96 (E.D. Tenn. May 19, 2008).
Saturday, May 31, 2008
TN Supreme Court addresses the issue of hospital vicarious liability under apparent agency theory
[Sources: Health Lawyers Weekly, May 30, 2008 (Vol. 6, Iss. 21) - AHLA]
Two hospitals in separate medical malpractice actions may be liable for the alleged negligence of certain independent contractor physicians based on an apparent agency theory, the Tennessee Supreme Court ruled recently.
Reversing appeals court decisions granting summary judgment in the hospitals’ favor, the high court found material issues of fact as to whether the hospitals provided the patients in question with adequate notice that the physicians were independent contractors rather than employees.
The opinions noted the issue of a hospital’s vicarious liability for the actions of independent contractor physicians under an apparent agency theory was one of first impression for the high court.
The high court therefore looked to case law in other jurisdictions and eventually adopted the analysis derived from the Restatement (Second) of Torts § 419, which requires a plaintiff in such cases to show (1) the hospital held itself out to the public as providing medical services; (2) the plaintiff looked to the hospital rather than to the individual physician to perform those services; and (3) the patient accepted those services in the reasonable belief that they were provided by the hospital or a hospital employee.
The high court noted a key issue in resolving vicarious liability actions against a hospital will often turn on whether it provided “meaningful” notice.
Although the patients in both cases at issue signed consent forms indicating the physicians providing the medical services were independent contractors, the high court found material issues of fact as to whether this constituted “meaningful” notice. Continue reading
Boren v. Weeks, No. M2007-00628-SC-R11-CV (Tenn. May 6, 2008).
Dewald v. HCA Health Servs. of Tenn., No. M2006-02369-SC-R11-CV (Tenn. May 12, 2008).
Two hospitals in separate medical malpractice actions may be liable for the alleged negligence of certain independent contractor physicians based on an apparent agency theory, the Tennessee Supreme Court ruled recently.
Reversing appeals court decisions granting summary judgment in the hospitals’ favor, the high court found material issues of fact as to whether the hospitals provided the patients in question with adequate notice that the physicians were independent contractors rather than employees.
The opinions noted the issue of a hospital’s vicarious liability for the actions of independent contractor physicians under an apparent agency theory was one of first impression for the high court.
The high court therefore looked to case law in other jurisdictions and eventually adopted the analysis derived from the Restatement (Second) of Torts § 419, which requires a plaintiff in such cases to show (1) the hospital held itself out to the public as providing medical services; (2) the plaintiff looked to the hospital rather than to the individual physician to perform those services; and (3) the patient accepted those services in the reasonable belief that they were provided by the hospital or a hospital employee.
The high court noted a key issue in resolving vicarious liability actions against a hospital will often turn on whether it provided “meaningful” notice.
Although the patients in both cases at issue signed consent forms indicating the physicians providing the medical services were independent contractors, the high court found material issues of fact as to whether this constituted “meaningful” notice. Continue reading
Boren v. Weeks, No. M2007-00628-SC-R11-CV (Tenn. May 6, 2008).
Dewald v. HCA Health Servs. of Tenn., No. M2006-02369-SC-R11-CV (Tenn. May 12, 2008).
Friday, May 16, 2008
News Updates
More hospitals requiring payment before treatment
In a front-page story, the Wall Street Journal (4/28, A1, Martinez) reports that many "[h]ospitals are adopting a policy to improve their finances: making medical care contingent on upfront payments." According to the American Hospital Association, "[u]ncompensated care cost the hospital industry $31.2 billion in 2006, up 44 percent from $21.6 billion in 2000." Meanwhile, approximately "77 percent of nonprofit hospitals are in the black, compared with 61 percent of for-profit hospitals," data from the American Hospital Directory indicate. Hospitals claim that the figures are "driven by a larger number of Americans who are uninsured" or underinsured, and that "among those with adequate insurance, deductibles and co-payments are growing so big that" even some "insured patients also have trouble paying hospitals." The Journal notes that even though federal law "requires hospitals to treat emergencies, such as heart attacks or injuries from accidents," that "law doesn't cover conditions that aren't immediately life-threatening."
[Health and Life Sciences Law Daily, April 28, 2008 - AHLA]
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U.S. Court In Tennessee Finds Incident Reports Sought By Plaintiff In Malpractice Action Not Privileged Under State Laws
Certain incident reports and other documents requested by the estate of a deceased nursing home resident in a medical malpractice action are not privileged under state peer review and health data reporting laws, a federal district court in Tennessee ruled April 14.
Continue
Brown v. Sun Healthcare Group Inc., No. 3:06-CV-240 (E.D. Tenn. Apr. 14, 2008).
[Health Lawyers Weekly, May 2, 2008 - AHLA]
>>>
Tennessee Senate passes long-term care legislation
The AP (5/2) reported that the Tennessee Senate voted 32 to 0 to approve the Long-Term Care Community Choices Act of 2008 (SB 4181), legislation that would direct roughly half of TennCare's budget toward "home-based care over the next decade." Currently, TennCare "spends almost all of its annual $1.2 billion long-term care budget on nursing homes."
In an op-ed for the Tennessean (5/4), State Sen. Lowe Finney (D-Jackson) noted that the bill would address the Tennessee "system from the top down, from services that are offered, licensure of care providers, expansion of community-based alternatives to quality assurance." Sen. Finney concluded, "We are integrating these long-term care services into our existing managed-care system, which is funded by federal and state dollars," and "[t]his helps us manage growth within our existing resources."
[Health and Life Sciences Law Daily, May 5, 2008 - AHLA]
In a front-page story, the Wall Street Journal (4/28, A1, Martinez) reports that many "[h]ospitals are adopting a policy to improve their finances: making medical care contingent on upfront payments." According to the American Hospital Association, "[u]ncompensated care cost the hospital industry $31.2 billion in 2006, up 44 percent from $21.6 billion in 2000." Meanwhile, approximately "77 percent of nonprofit hospitals are in the black, compared with 61 percent of for-profit hospitals," data from the American Hospital Directory indicate. Hospitals claim that the figures are "driven by a larger number of Americans who are uninsured" or underinsured, and that "among those with adequate insurance, deductibles and co-payments are growing so big that" even some "insured patients also have trouble paying hospitals." The Journal notes that even though federal law "requires hospitals to treat emergencies, such as heart attacks or injuries from accidents," that "law doesn't cover conditions that aren't immediately life-threatening."
[Health and Life Sciences Law Daily, April 28, 2008 - AHLA]
>>>
U.S. Court In Tennessee Finds Incident Reports Sought By Plaintiff In Malpractice Action Not Privileged Under State Laws
Certain incident reports and other documents requested by the estate of a deceased nursing home resident in a medical malpractice action are not privileged under state peer review and health data reporting laws, a federal district court in Tennessee ruled April 14.
Continue
Brown v. Sun Healthcare Group Inc., No. 3:06-CV-240 (E.D. Tenn. Apr. 14, 2008).
[Health Lawyers Weekly, May 2, 2008 - AHLA]
>>>
Tennessee Senate passes long-term care legislation
The AP (5/2) reported that the Tennessee Senate voted 32 to 0 to approve the Long-Term Care Community Choices Act of 2008 (SB 4181), legislation that would direct roughly half of TennCare's budget toward "home-based care over the next decade." Currently, TennCare "spends almost all of its annual $1.2 billion long-term care budget on nursing homes."
In an op-ed for the Tennessean (5/4), State Sen. Lowe Finney (D-Jackson) noted that the bill would address the Tennessee "system from the top down, from services that are offered, licensure of care providers, expansion of community-based alternatives to quality assurance." Sen. Finney concluded, "We are integrating these long-term care services into our existing managed-care system, which is funded by federal and state dollars," and "[t]his helps us manage growth within our existing resources."
[Health and Life Sciences Law Daily, May 5, 2008 - AHLA]
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