Cytryn v. Cardiovascular Associates of Chambersburg Ltd.

15 Pa. D. & C.4th 376, 1992 Pa. Dist. & Cnty. Dec. LEXIS 246
CourtPennsylvania Court of Common Pleas, Franklin County
DecidedFebruary 14, 1992
Docketno. A.D. 1991-541
StatusPublished

This text of 15 Pa. D. & C.4th 376 (Cytryn v. Cardiovascular Associates of Chambersburg Ltd.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Franklin County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cytryn v. Cardiovascular Associates of Chambersburg Ltd., 15 Pa. D. & C.4th 376, 1992 Pa. Dist. & Cnty. Dec. LEXIS 246 (Pa. Super. Ct. 1992).

Opinion

KAYE, J.,

The instant proceeding arises out of an action for declaratory judgment brought by Richard A. Cytryn against Cardiovascular Associates of Chambersburg Ltd. in which the court is asked to interpret various aspects of an employment agreement dated January 30, 1991, between Dr. Cytryn and Cardiovascular Associates. We specifically are asked to determine if Dr. Cytryn is entitled to a bonus of 30 percent of Cardiovascular Associates’ net income in excess of $498,0821 and whether a restrictive covenant and liquidated damages clause contained therein are enforceable.

[377]*377In connection with the foregoing proceeding, plaintiff caused a subpoena duces tecum and deposition notice to issue on Norman Epstein, president of Chambersburg Hospital. The subpoena and deposition notice seek to compel Mr. Epstein to provide the following documents and data:

(1) all minutes (including attachments) of the Cardiac Services Task Force for the past 24 months;

(2) copies of all documents provided to the Cardiac Services Task Force in the past 24 months.

(3) all notes and paperwork of the Cardiac Services Task Force concerning complaints by physicians involving cardiology services for the past 24 months;

(4) all notes and documents prepared in the last 24 months concerning why local physicians refer patients to cardiologists outside the Chambersburg Area;

(5) Chambersburg Hospital staffing plan for cardiology services; and

(6) all minutes for the past 24 months of the Family Practice Group.

Thereafter, a motion was filed in behalf of Mr. Epstein, in his capacity as president of Chambersburg Hospital, and by Chambersburg Hospital, seeking relief in the nature of a protective order and stay of proceedings relative to the subpoenaed data. A hearing was held in this matter on January 29,1992, at which time testimony was given by Mr. Epstein, and argument was presented. Counsel for the parties have provided memoranda of law relative to their respective positions, and the matter is before the court for decision. For the reasons hereafter set forth, we will grant Mr. Epstein and Chambersburg Hospital the relief sought in their motion for a protective order.

[378]*378As is apparent from the foregoing, neither Mr. Epstein nor Chambersburg Hospital, is a party to this litigation, and Mr. Epstein made it abundantly clear in his testimony of the neutrality of himself and the hospital in the instant litigation. Nonetheless, plaintiff seeks to compel the disclosure of certain studies commissioned and/or conducted by Chambersburg Hospital regarding the health care needs in the Chambersburg Hospital service area. Plaintiff asserts that these data are relevant to the matter sub judice due to a holding of the Pennsylvania Supreme Court which, inter alia, considered the enforceability of a non-competition agreement contained in a physician’s employment contract:

“One of the factors to be considered in reviewing the issuance of an injunction enforcing an anti-competitive employment covenant is the effect of the action upon the interests of society as a whole. Consequently, when the courts of other jurisdictions have been presented with this question, their analysis has focused upon the number of practitioners in the area involved.
“In an era where the availability of and the rising cost of medical services are matters of national concern, the law must consider the impact of the enforcement of these non-competitive, clauses upon the problem. Paramount to the respective rights of the parties to the covenant must be its effect upon the consumer who is in need of the service. This is of particular significance where equitable relief is being sought and the result of such an order or decree would deprive the community involved of a desperately needed service.” New Castle Orthopedic Associates v. Burns, 481 Pa. 460, 469, 392 A.2d 1383, 1387-1388 (1978).

Plaintiff asserts that the studies conducted or commissioned by Chambersburg Hospital would be relevant to [379]*379assist the fact-finder in assessing the applicability of the considerations set forth in New Castle, supra, in the instant litigation. Defendant argues that New Castle is not binding precedent because it was not a majority decision; the information sought is available elsewhere; and in fact plaintiff has stated that he had already received affidavits from at least 12 physicians attesting to a shortage of cardiologists in the area, thus making the information in the reports merely corroborative.

The hospital asserts that the reports either are non-discoverable “trade secrets” or are the subject of protection under the “Peer Review Protection Act,” 63 P.S. §425.1 et seq.

Prior to considering these matters, we think it appropriate to set forth our belief that in the instant proceeding, defendant does not have standing to assert an objection in its own right to disclosure of the hospital’s studies.2 While the court ultimately may be called upon to determine if the hospital data are indeed relevant to the issues presented, we think defendant can no more object to plaintiff’s efforts to obtain discovery than it could prevent plaintiff from conducting any other legitimate investigation to attempt to prepare its case for trial. At this juncture in the litigation, we believe the sole consideration is whether the hospital has asserted a privilege cognizable by the law which will preclude disclosure.

In connection with its motion, the hospital’s president and CEO, Norman Epstein, testified that the hospital has undertaken an effort to bring about a consensus regarding [380]*380future planning for the development of Chambersburg Hospital’s mission in the community that it serves. In this connection, a one and one-half day retreat was held to formulate a mission statement, and for the discussion of key factors to be addressed in the future. A number of group discussions were held, and it was agreed that confidentiality would be maintained to assure candor in the discussions.

Mr. Epstein further testified that the process is an ongoing one, and that the Hospital Board of Directors’ Planning Committee has established a Cardiology Task Force to conduct a study of the current and future needs in that area of medical specialization. The task force still exists, continues to meet, and has not yet arrived at any conclusion as whether the number of cardiologists currently in practice in the hospital is adequate to fill the community needs. The only conclusion reached to date by the task force is that application should be made to the State Department of Health to establish a heart catheterization program at Chambersburg Hospital.

The task force employed, at significant cost to the hospital, professionals to assist it as facilitators and in data-gathering in areas such as the demographic characteristics of the area, need for services, market share information, etc. In the course of the process, numerous private interviews were conducted with physicians regarding cardiac services.3 Mr. Epstein testified that the physicians who participated in this process were assured of confidentiality [381]*381in order that they would participate with candor.

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Related

Sanderson v. Frank S. Bryan, M.D., Ltd.
522 A.2d 1138 (Supreme Court of Pennsylvania, 1987)
New Castle Orthopedic Associates v. Burns
392 A.2d 1383 (Supreme Court of Pennsylvania, 1978)

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Bluebook (online)
15 Pa. D. & C.4th 376, 1992 Pa. Dist. & Cnty. Dec. LEXIS 246, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cytryn-v-cardiovascular-associates-of-chambersburg-ltd-pactcomplfrankl-1992.