Allegiant Physicians Services, Inc. v. Sturdy Memorial Hospital

926 F. Supp. 1106, 1996 U.S. Dist. LEXIS 6805
CourtDistrict Court, N.D. Georgia
DecidedApril 15, 1996
Docket1:95-cv-01741
StatusPublished
Cited by17 cases

This text of 926 F. Supp. 1106 (Allegiant Physicians Services, Inc. v. Sturdy Memorial Hospital) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allegiant Physicians Services, Inc. v. Sturdy Memorial Hospital, 926 F. Supp. 1106, 1996 U.S. Dist. LEXIS 6805 (N.D. Ga. 1996).

Opinion

ORDER

HULL, District Judge.

This diversity action is before the Court on Defendants’ Motion to Dismiss for lack of personal jurisdiction [6-1],

I. FACTS

Plaintiff is a Delaware Corporation that provides anesthesia services to hospitals and physicians’ groups throughout the United States and has its principal place of business in Atlanta, Georgia. Since May 24, 1991, Plaintiff has been registered to do business in Massachusetts and, as of February, 1995, has maintained a regional office in North Dartmouth, Massachusetts.

Defendant Sturdy Memorial Hospital (the “Hospital”) is a Massachusetts non-profit corporation with its principal place of business in Attleboro, Massachusetts. Defendant Hospital operates a satellite health center in Mansfield, Massachusetts, which is close to Attleboro. Defendant Hospital does not have any offices in Georgia and conducts no business in Georgia. Defendant physicians are residents of either Massachusetts or Rhode Island and all work for Defendant Hospital. Defendants Durnan, Alenson, Pauliukonis, Pollan, Spletzer, and Bhimani are all medical doctors licensed to practice in Massachusetts. Defendant Dunlap is a certified registered nurse anesthetist licensed to *1110 practice in Massachusetts. None of the individual Defendants has ever been licensed to practice in Georgia.

A.PLAINTIFF CONTACTED DEFENDANT HOSPITAL

As part of its regular direct mail marketing effort to numerous hospitals, Plaintiff publishes and distributes a bimonthly newsletter called “Business & Medicine Today.” Included in the newsletter are business reply cards for readers seeking more information about Plaintiff and its services. In early 1990, Plaintiff received one of these business reply cards from Dr. Richard Shea of Defendant Hospital, requesting additional information about Plaintiffs services. In response, one of Plaintiffs employees contacted Dr. Shea to discuss Plaintiffs services and Defendant Hospital’s anesthesia needs. At Dr. Shea’s request, Plaintiff sent him an information package that included a brochure, past issues of Business & Medicine Today, and a questionnaire.

Several months later, Plaintiff received the completed questionnaire from Dr. Shea. In January, 1991, Plaintiff sent Dr. Shea a letter regarding Plaintiffs provision of anesthesiology services to Defendant Hospital.

Between January and March, 1991, Plaintiff and Defendant Hospital negotiated the details of an anesthesiology agreement (the “Anesthesiology Agreement”). These negotiations were conducted by phone, by mail, and during in-person meetings between Defendant Hospital and Plaintiffs representative at Defendant Hospital in Massachusetts.

Defendant Hospital’s attorneys drafted the Anesthesiology Agreement in Massachusetts and sent it to Plaintiffs offices in Atlanta, Georgia for review and approval. After more negotiations, Plaintiff signed the Anesthesiology Agreement on March 4, 1991. On March 6, 1991, Plaintiff received an executed copy of the Anesthesiology Agreement from Defendant Hospital.

The Anesthesiology Agreement included a choice of law provision that read in relevant part:

This Agreement has been executed and delivered in, and shall be interpreted, construed, and enforced pursuant to and in accordance with the laws of the Commonwealth of Massachusetts.

(Anesthesiology Agreement, Defendants’ exhibit “A” to Shyavitz’s affidavit). The Anesthesiology Agreement’s original term was for five years, beginning on May 1, 1991.

B.DEFENDANT HOSPITAL’S CONNECTION WITH GEORGIA

Pursuant to the Anesthesiology Agreement, Plaintiff was the exclusive provider of anesthesia and related administrative services at Defendant Hospital. Once a month, Plaintiff sent Defendant Hospital a bill for services rendered, and Defendant Hospital sent Plaintiff a check drawn on a Massachusetts bank. Until February, 1994, Defendant Hospital sent its checks to Atlanta, Georgia; after February, 1994, Defendant Hospital sent its checks to Dayton, Ohio. In addition to the regular monthly billing, the parties communicated with one another on a wide range of topics, including personnel matters, billing questions, staffing requirements, bonuses, medical malpractice premiums, and other issues relating to Plaintiffs management of anesthesiology services at Defendant Hospital. These communications occurred several times a month.

No Hospital employee ever traveled to Georgia in connection with the Anesthesiology Agreement. Defendant Hospital has no affiliation with Georgia: it has never owned or leased property in Georgia, it has no operations in Georgia, it renders no services in Georgia, and it receives no revenue or income from Georgia. The sole contacts between Defendant Hospital and Georgia were telephone and written communications between Defendant Hospital and Plaintiff about matters pertaining to the Anesthesiology Agreement.

C.PLAINTIFF’S CONTACT WITH DEFENDANT PHYSICIANS

To fulfill its obligations under the agreement with Defendant Hospital, Plaintiff hired *1111 permanent and locum tenens 1 physicians as needed to fill existing vacancies in the anesthesiology group at the Hospital. Plaintiff conducted its recruiting efforts for permanent and locum tenens physicians from its offices in Atlanta, Georgia.

Defendant physicians were all permanent physicians hired to work exclusively at Defendant Hospital in Massachusetts. Each permanent physician signed a professional service contract, also referred to as a physicians retention agreement, to serve as an independent contractor with an entity called “Premier Anesthesia of Attleboro.” Defendant Hospital is located in Attleboro, Massachusetts. The text of the service contracts explains that “Premier Anesthesia of Attleboro” is the assignee of Plaintiffs rights and duties under the Anesthesiology Agreement. Though not clear in the record, “Premier Anesthesia of Attleboro” appears to be a professional corporation under the control of Plaintiff.

From its offices in Atlanta, Plaintiff also recruited and signed Dr. Pollan to serve as medical director of the anesthesiology at the Hospital. Dr. Pollan replaced Dr. Bhimani, who was serving as acting medical director when the Anesthesiology Agreement was signed. Drs. Pollan and Bhimani both signed contracts with Premier Anesthesia of Attleboro (“P.A.”).

As part of its responsibilities to Defendant physicians, P.A. ensured that Defendant physicians were properly trained and certified, and P.A. maintained the Defendant physicians’ training and certification throughout the course of the agreement. P.A. also billed and collected for the services performed by the Defendant physicians. According the physician retention agreements, P.A. retained the Defendant physicians exclusively and paid them gross compensation, from which the Defendant physicians were responsible for paying their taxes. P.A. also shared a percentage of the profits it earned from the Defendant physicians’ services at the Hospital. P.A.

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Cite This Page — Counsel Stack

Bluebook (online)
926 F. Supp. 1106, 1996 U.S. Dist. LEXIS 6805, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allegiant-physicians-services-inc-v-sturdy-memorial-hospital-gand-1996.