Burns v. Universal Health Services, Inc.

603 S.E.2d 605, 361 S.C. 221, 23 I.E.R. Cas. (BNA) 303, 2004 S.C. App. LEXIS 277
CourtCourt of Appeals of South Carolina
DecidedSeptember 27, 2004
Docket3869
StatusPublished
Cited by19 cases

This text of 603 S.E.2d 605 (Burns v. Universal Health Services, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burns v. Universal Health Services, Inc., 603 S.E.2d 605, 361 S.C. 221, 23 I.E.R. Cas. (BNA) 303, 2004 S.C. App. LEXIS 277 (S.C. Ct. App. 2004).

Opinion

ANDERSON, J.

Katherine Burns appeals the trial court’s decision granting Universal Health Service’s (Universal) motion for a judgment notwithstanding the verdict (JNOV) on Burns’ action for *226 breach of the implied covenant of good faith and fair dealing. In addition, Burns argues the trial court erred in refusing to admit evidence of the deterioration and quality of patient care at the hospital after Universal purchased the hospital and took over the management thereof. We reverse and reinstate the jury verdict.

FACTUAL/PROCEDURAL BACKGROUND

This action arises out of Universal’s termination of Burns’ employment. The issue before this Court is Burns’ contention that certain hospital policies and procedures created an employee contract which altered the at-will employment relationship.

Burns began her employment with Aiken Regional Medical Centers in February 1989. Universal purchased Aiken Regional Medical Centers from Hospital Corporation of America in July of 1995. For approximately eight years, Burns remained employed with the hospital as a nurse. On January 21, 1997, Universal terminated Burns’ employment due to her “insubordinate refusal to meet with the Hospital to discuss a confidential patient care issue.” Burns claims her termination was the result of tension between Universal and herself after she expressed concern regarding the quality of health care services being provided by the hospital after Universal purchased the hospital in July 1995.

Upon employment with the hospital in 1989, Burns received an employee handbook. On February 27, 1989, she signed an acknowledgment card indicating she read and understood the acknowledgment card and agreed to read the employee handbook. The acknowledgment card provided in part:

I understand that the purpose of this Handbook is to provide employees of the Hospital with general information regarding the policies and procedures the Hospital attempts to follow in most cases but that neither this handbook nor any provision of this handbook is an employment contract or any other type of contract.....
I understand and agree that my employment at HCA Aiken Regional Medical Centers is for an indefinite term and is terminable at any time at the will of either myself or the Hospital for any reason.

*227 (emphasis in original). Additionally, Burns signed a Confidentiality Statement in 1989 declaring she understood that violating patient confidentiality was grounds for immediate termination. In 1993, Burns signed another acknowledgment card and receipt for handbook, which stated in part:

The purpose of this Handbook is to provide associates of the Hospital with general information regarding the personnel guidelines the Hospital attempts to follow in most cases, but NEITHER THIS HANDBOOK NOR ANY PROVISION OF THIS HANDBOOK IS AN EMPLOYMENT CONTRACT NOR ANY OTHER TYPE OF CONTRACT.....
All associates at Aiken Regional Medical Centers are employed for an indefinite term, and employment may be terminated, with or without cause, at any time, at the will of either the associate or the Hospital.

During her employment with Aiken Regional Medical Centers, Burns received Form Number HR116, which set forth the procedures for disciplinary actions. Universal adopted HR116 in July of 1995 and amended HR116 on August 3,1997. Form Number HR116, as amended by Universal, is titled “DISCIPLINARY ACTIONS” and articulates:

I. PURPOSE
To establish definitive policies for the initiation of disciplinary and corrective actions and termination of employment.
II. POLICY
Disciplinary actions must be administered in accordance with established Human Resources policies, procedures and guidelines, and without regard to race, sex, age, religion, national origin or disability.
Employment may only be terminated with the prior approval of the Director of Human Resources or authorized designee.
III. TYPES OF DISCIPLINARY ACTIONS
A. Aiken Regional Medical Centers has developed the following progressive disciplinary approach which may be utilized when violations of hospital policy or practice of Service Excellence standards occur. The following progressive steps should generally be followed when an associate has disciplinary problem(s):
*228 1. Written counseling session.
2. Written warning (Win Win).
3. Final warning.
4. Discharge.
The attached document, Rules of Conduct, gives general guidelines for administering disciplinary actions for common infractions. These guidelines should be used whenever possible to ensure that associates receive fair and consistent treatment in performance and disciplinary related problems. Disciplinary problems which are not addressed in the Rules of Conduct, or those involving extenuating circumstances may be addressed with the Director of Human Resources or an authorized designee. In any given case, the circumstances of the specific incident will dictate the severity of the disciplinary actions, and nothing in this policy should be construed, [sic] otherwise Aiken Regional Medical Centers reserves the right to administer disciplinary action up to and including termination as it deems appropriate.
All terminations must be reviewed and approved by the Director of Human Resources or authorized designee prior to termination.
Disciplinary actions should be recorded on an Associate Management Record form or in memo form, provided that all points are adequately explained.
B. For the documentation to be complete, the following points should be noted:
1. A specific date, time and location of incident(s).
2. A complete description of the negative performance or behavior exhibited by the associate — the problem. (Use additional paper as an attachment if necessary to adequately describe the problem.)
3. Consequences of that action or behavior on the associate’s total work performance and/or operation of the associate’s work unit.
4. Reference to prior discussion(s) with the associate.
5. Disciplinary action to be taken and specific improvement expected.
*229 6. Consequences, if improvement is not made.
7. The associate’s reaction to the disciplinary action, and an offer to submit a written rebuttal.
8. Note witnesses, if appropriate.
C.

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Bluebook (online)
603 S.E.2d 605, 361 S.C. 221, 23 I.E.R. Cas. (BNA) 303, 2004 S.C. App. LEXIS 277, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burns-v-universal-health-services-inc-scctapp-2004.