Carl A. Lindblad v. Parkridge Health System

CourtCourt of Appeals of Tennessee
DecidedOctober 16, 2003
DocketE2003-00221-COA-R3-CV
StatusPublished

This text of Carl A. Lindblad v. Parkridge Health System (Carl A. Lindblad v. Parkridge Health System) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carl A. Lindblad v. Parkridge Health System, (Tenn. Ct. App. 2003).

Opinion

IN THE COURT OF APPEALS OF TENNESSEE AT KNOXVILLE October 16, 2003 Session

CARL A. LINDBLAD, M.D., v. PARKRIDGE HEALTH SYSTEM, INC., ET AL.

Appeal from the Circuit Court for Hamilton County No. 99C2383 W. Neil Thomas, III, Judge

No. E2003-00221-COA-R3-CV

The Plaintiff resigned his position as Director of the hospital’s emergency services. Parkridge Health System, Inc. d/b/a East Ridge Hospital, [hereafter “the hospital” or “Defendant”] accepted his resignation and terminated his staff privileges in accordance with an employment Agreement. The hospital’s bylaws required notice and hearing, which were not followed. The Plaintiff filed this action asserting that in failing to observe its bylaws the hospital breached its contract with him since the bylaws were an integral part of the contract. The Chancellor granted the hospital’s motion for summary judgment, holding that the Agreement, which provided for termination of staff privileges controlled the issue. We affirm.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Circuit Court Affirmed

WILLIAM H. INMAN , SR. J., delivered the opinion of the court, in which HERSCHEL P. FRANKS and CHARLES D. SUSANO, JR., JJ, joined.

Larry L. Crain, Brentwood, Tennessee, attorney for appellant, Carl A. Lindblad.

Sue E. Scruggs and C. Eugene Shiles, Chattanooga, Tennessee, attorneys for appellee, Parkridge Health Systems, Inc. d/b/a East Ridge Hospital.

OPINION

At relevant times the Plaintiff was a licensed physician, and the Director of the Defendant hospital’s emergency room. He was the sole shareholder of a corporation styled Associates in Emergency Medicine [hereafter “Associates”], chartered in 1995. His practice was limited to providing emergency medical treatment at the hospital; he had no private patients, and he neither sought nor obtained admitting or attending privileges at the hospital.

In July 1999, he ordered, apparently sub rosa, a quantity of narcotic drugs from Henry Schein, Inc., a distributor of medical supplies and medications, which were delivered to him, by parcel post, at the hospital.1 The package was discovered by hospital personnel who opened it, and examined the contents which were later delivered to the Plaintiff.

Narcotic drugs are closely regulated by state and federal law, as well as by hospital policy which prohibits the acquisition or dispensing of drugs except in strict compliance with the applicable laws, regulations, and policies of the hospital.

For the purpose of ascertaining from the plaintiff the purpose and intended use of these drugs a meeting was held, on August 13, 1999, with members of the hospital’s Pharmacy and Therapeutics Committee in attendance. Present were Brenda Waltz, (CEO of the hospital); Dr. America Jones, (Director of Pharmacy); Dr. Donald Hartsfield, who was the Chair of the Committee, and the Plaintiff. The Plaintiff was informed that an explanation of the matter was necessary because, inter alia, the quantity of the drugs delivered to him exceeded the amount of the same drugs in the pharmacy’s inventory, and his acquisition of these drugs was violative of hospital policy.

The Plaintiff stated that he bought the drugs “to keep around the house for family, friends”, as well as neighbors. Dr. Hartsfield testified that Dr. Lindblad said that he had obtained the drugs to do his friends a favor. It developed that Dr. Lindblad had previously purchased drugs from the same source. He admitted in his deposition that he did not establish a doctor-patient relationship with family, friends or neighbors prior to dispensing drugs/medications and did not maintain any documentation of his dispensation of drugs. According to Dr. Hartsfield, when the Plaintiff was informed by the Director of Pharmacy that he could not take delivery of controlled substances at the hospital, he became defensive and stated that “as a physician he could do what he wanted to with the drugs.” Dr. Jones described Plaintiff’s response as “belligerent, very angry, defensive and [he] threatened me.” Dr. Hartsfield testified that “[h]e didn’t give us a clear sense that he was not going to cease getting controlled substances.” Dr. Jones was concerned because, as she testified, “. . . Joint Commission for Accreditation of Hospitals makes me solely responsible for every medication that flows through the hospital”, including samples brought by doctors from their offices.

The Plaintiff’s response and the hospital’s concern about the large quantity of drugs ordered by the Plaintiff and delivered to the hospital resulted in Ms. Waltz informing the Plaintiff that he should find other physicians to take his shifts until the drug situation was clarified, but Associates continued to provide exclusive services to the hospital’s emergency department. The Plaintiff did not protest arrangements and agreed that he would not work. Apparently, this temporary arrangement did not constitute disciplinary action under the bylaws but was taken pursuant to and consistent with ¶ 1.4 of the Professional Services Agreement [“Agreement”], hereafter discussed.

On the same day of the Committee meeting, Ms. Waltz contacted Dr. Gary Olbrich, the Medical Director of the Medical Foundation Physicians Health Program, more commonly known as the “Tennessee Impaired Physician’s Program”, who agreed to confer with the Plaintiff, and did

1 The drugs includ ed 500 X anax 200 mg. tab lets, a Schedule IV drug, 500 hydro cod one ASA P tab lets, a Schedule II drug, one pint of hydrocodone syrup, and one pint of hydrocodone with homatropine syrup.

-2- so, six days later. The initial assessment by Dr. Olbrich included a psychosocial evaluation, as well as an addiction medicine evaluation, but with no actual drug screening. Dr. Olbrich testified that he found the Plaintiff to be forthcoming and not an immediate risk to return to work; he testified that he routinely asks hospitals to give physicians within the program “a medical leave of absence pending review of the circumstances.” To form a reasoned opinion about the Plaintiff’s conduct and perhaps facilitate his return to the hospital, Dr. Olbrich had the following discussion with the Plaintiff:

Q. What did you tell Dr. Lindblad as far as your understanding to get back to the hospital administration?

A. I asked him - well, we discussed several options. As I told him, that based on the information that I had been able to obtain from him, I saw no particular reason to tell that we had any collating [sic] information to indicate that he might be a substance abuser or have a chemical dependency. There was, however, the allegation that he had received a large amount of mood-altering drugs, for what purpose, we don’t know and that it would be in his best interest to help resolve the difficulty and preserve his reputation if we could establish that beyond just my word and our interview that there was no evidence of chemical dependency. I don’t know – I honestly don’t remember specifically what I discussed with Dr. Lindblad, but the options usually are to ask them – they – someone like this who has a low level of suspicion, I would offer them the opportunity to do random urine drug screens over a period of time, usually a year, to determine – and almost without question if someone is chemically-dependent, we will catch them with the use of – an inappropriate use of a mood-altering drug during that time. An extreme form would be – you know, the ultimate form actually is to go into a 3-5 day residential evaluation where you have a team of assessors. And I’m certain based on the information I received that I did not say he needed that unless he might need that to satisfy people who were concerned about him.

Questions hovered nevertheless, not only about whether Dr.

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Bluebook (online)
Carl A. Lindblad v. Parkridge Health System, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carl-a-lindblad-v-parkridge-health-system-tennctapp-2003.