Central States v. Fla. Soc. of Pathologists

824 So. 2d 935, 2002 WL 1482684
CourtDistrict Court of Appeal of Florida
DecidedJuly 12, 2002
Docket5D01-501
StatusPublished
Cited by4 cases

This text of 824 So. 2d 935 (Central States v. Fla. Soc. of Pathologists) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Central States v. Fla. Soc. of Pathologists, 824 So. 2d 935, 2002 WL 1482684 (Fla. Ct. App. 2002).

Opinion

824 So.2d 935 (2002)

CENTRAL STATES, SOUTHEAST & SOUTHWEST, etc., Appellants,
v.
FLORIDA SOCIETY OF PATHOLOGISTS, etc., et al, Appellees.

No. 5D01-501.

District Court of Appeal of Florida, Fifth District.

July 12, 2002.
Rehearing Denied September 4, 2002.

Denis L. Durkin and Robert W. Thielhelm, Jr. of Baker & Hostetler, L.L.P., Orlando, for Appellants.

David L. Evans and David C. Willis of Mateer & Harbert, P.A., Orlando, and Jack R. Bierig, Richard D. Raskin and Scott D. Stein of Sidley, Austin, Brown & Wood, P.A., Chicago, for Appellees.

*936 THOMPSON, C.J.

Central States, Southeast and Southwest Areas Health and Welfare Fund ("Central States") appeals a summary judgment in favor of Florida Society of Pathologists, Ameripath Florida, and Ruffolo, Hooper & Associates (collectively "the pathologists"). Central States is a multi-employer/employee health and welfare plan with its principal place of business in Chicago and has members who reside in Orange County and elsewhere in Florida. Fasig v. Florida Society of Pathologists, 769 So.2d 1151 (Fla. 5th DCA 2000).[1] Florida Society of Pathologists is the largest professional organization of pathologists in Florida, and Ameripath and Ruffolo Hooper are pathology practices whose pathologists provide laboratory services for patients throughout the state. Id. The pathologists sued Central States, seeking injunctive relief and damages for unfair trade practices and interference with business relationships, after Central States communicated to many of its members that it did not think the pathologists appropriately billed the members for services. We reverse.

Through brochures, the pathologists informed hospital patients of the following:

It you receive two statements for your laboratory work, one will be from the pathologist and the other from the hospital or facility where the work was performed. The pathologist's bill will cover his or her professional services in examining and analyzing your blood, cells, tissue, or other specimens, reporting the findings, and consulting with your physician when it is appropriate. The bill from the hospital or other facility represents the cost of furnishing and equipping the laboratory and providing pathology services.

Actually, hospital patients who had pathology services received a bill from the hospital, along with one from the pathologist associated with the hospital, even if the pathologist never "examin[ed] or analyz[ed] [the patient's] blood, cells, tissue, or other specimens," and even if the pathologist never reviewed the results of the testing, which is done for the most part by machine and technician. See id.

Notwithstanding the claim of patient-specific, direct services made in the pathologists' publications, the pathologists claim in the instant case that they are entitled to bill patients for a non-patient-specific "professional component" of pathology services. Professional component charges are fees for testing specimens drawn from patients, although the specimens are not drawn by pathologists and are tested by machines, rather than pathologists. Id. According to the pathologists, clinical pathology is not limited to the direct, hands-on review of particular test results, but involves deciding whether to offer, modify, or discontinue a clinical test, evaluating or designing protocols for new procedures, evaluating the normal range of test results in light of the specific patient population, overseeing calibration of the equipment, and teaching treating physicians how to evaluate the test results. Pathologists must be available 24 hours a day and seven days a week to address questions about specific results for specific patients, and may need to consult with the treating physician or research an unusual case. They must review results that deviate from the norm and determine whether the deviation is attributable to the patient or to error. "Collectively," the pathologists state in their brief, "the services of pathologists in directing the medical laboratory to assure the timeliness, reliability, and usefulness of *937 test results for specific patients are known as the `professional component' of clinical pathology."

Central States pays the hospitals' pathology charges, but contended successfully in federal court that its plan does not cover bills for the professional component because its plan covers "treatment," and the "hands-off" aspects of the professional component—i.e. calibrating the machines and the like—does not constitute treatment. Moreover, Central States told its members that they should not pay any bills they might receive for the professional component. The position of Central States was that it had paid all a member owed when it paid the hospitals' pathology charges. If the pathologists had submitted any bills for professional services specifically directed at a particular member, such as blood analysis or consultation with the treating physician, it would have paid the bills. Central States thinks that if the pathologists want to be paid for the professional component, they should seek payment from the hospitals at which they perform their oversight of the laboratory.

Central States sent letters to the pathologists setting forth its position. It sent copies of these letters to its members, and the pathologists allege that the letters contain false statements and material omissions, and constitute unfair and deceptive trade practices. The pathologists further contend that this "letter campaign" has tortiously interfered with the pathologists' business relationships with members of Central States. The letters state that Central States paid the hospitals for the laboratory services, but denied payment for the pathologists' professional component in the absence of evidence that the pathologist performed a specific, identifiable service for the individual patient who was charged for the professional component.

The letters further state:

Furthermore, if you prosecute Central States' participants to collect "professional component" charges not supported by the provision of patient-specific services, Central States will ensure that its participants are represented by able counsel—at Central States' expense. The United States District Court for the Northern District of Illinois has found that because the pathologist has not performed a patient-specific service, "the charge for the professional component is therefore unreasonable...." Although the U.S. Court of Appeals for the Seventh Circuit held ... that Central States is not entitled to a refund for professional component charges it has paid in the past, the Court of Appeals did not disturb the trial court's ruling that the professional component charge should not be covered by Central States and is unreasonable.

The federal cases to which the letters refer are Central States v. Pathology Laboratories of Arkansas, P.A., 1994 WL 362187 (N.D.Ill.1994), and Central States v. Pathology Laboratories of Arkansas, P.A., 71 F.3d 1251 (7th Cir.1995) (hereafter Central States). The letters do not mention the seventh circuit's statement that the patients in that case had "contractual commitments" to pay the professional component fees, commitments which were unaffected by the fact that the plan did not cover professional components. Central States, 71 F.3d at 1253.

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Bluebook (online)
824 So. 2d 935, 2002 WL 1482684, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-states-v-fla-soc-of-pathologists-fladistctapp-2002.