Dr. Lalitha Madhav Janaki v. Christus Spohn Hospital - Corpus Christi and Christus Spohn Hospital Corpus Christi - Shoreline

Court of Appeals of Texas·Decided April 8, 2021·No. 13-20-00126-CV·Published

Opinion

NUMBER 13-20-00125-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS CORPUS CHRISTI – EDINBURG

DR. LALITHA MADHAV JANAKI, Appellant, v.

C.H. WILKINSON PHYSICIAN NETWORK D/B/A CHRISTUS PHYSICIAN GROUP, Appellee.

On appeal from the 319th District Court of Nueces County, Texas.

NUMBER 13-20-00126-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS CORPUS CHRISTI – EDINBURG

DR. LALITHA MADHAV JANAKI, Appellant, v.

CHRISTUS SPOHN HOSPITAL – CORPUS CHRISTI AND CHRISTUS SPOHN HOSPITAL CORPUS CHRISTI – SHORELINE, Appellees.

On appeal from the 319th District Court of Nueces County, Texas.

NUMBER 13-20-00127-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS CORPUS CHRISTI – EDINBURG

DR. LALITHA MADHAV JANAKI, Appellant, v.

CHRISTUS SPOHN CANCER CENTER – CALALLEN AND CHRISTUS SPOHN CANCER CENTER – SHORELINE, Appellees.

On appeal from the 319th District Court of Nueces County, Texas.

OPINION

Before Chief Justice Contreras and Justices Hinojosa and Silva Opinion by Justice Silva

Appellant Dr. Lalitha Madhav Janaki brought suit against appellees C.H. Wilkinson d/b/a Christus Physician Group (CPG); Christus Spohn Hospital – Corpus Christi, Christus Spohn Hospital Corpus Christi – Shoreline (collectively, the Hospitals); and Christus Spohn Cancer Center – Calallen, and Christus Spohn Cancer Center – Shoreline (collectively, the Cancer Centers) for retaliation against Dr. Janaki for reporting potential Medicare fraud. Appellees each filed a motion for summary judgment, asserting that the statutory relief sought by Dr. Janaki was inapplicable to each party as a matter of law. The trial court granted each appellee’s motion for summary judgment. By three issues, one applicable to each set of appellees, Dr. Janaki asserts the trial court erred by granting the motions for summary judgment because appellees should be treated as a “single integrated enterprise,” thus allowing the statutory relief pleaded. We affirm.

I. BACKGROUND

Dr. Janaki, a radiation oncologist, was employed by CPG as a physician providing cancer treatment to patients at the Hospitals and Cancer Centers. Dr. Janaki’s employment contract with CPG began on June 27, 2014, and, throughout her employment, she maintained privileges1 with the Hospitals and Cancer Centers. In December 2016, Dr. Janaki began raising concerns with CPG and the Hospitals regarding the Hospitals’ use of Medicare physician billing numbers and services for physicians who no longer provided services at the Hospitals. 2 On August 18, 2017, Dr. Janaki was called

1 Privileges, as used in a medical setting, refers to a physician’s ability to admit patients to a particular hospital or facility and use their resources to treat admitted patients. See 42 U.S.C. § 11151(3); see also Tenet Health Ltd. v. Zamora, 13 S.W.3d 464, 470–72 (Tex. App.—Corpus Christi–Edinburg 2000, pet. dism’d w.o.j.).

2 In order to provide services under Medicare, physicians must apply for and receive a unique identifier which is used to bill for services covered by Medicare. See U.S. DEP’T OF HEALTH & HUMAN SERVS.,

into a meeting with a representative from CPG and a human resource official from the Hospitals. At the meeting, CPG informed Dr. Janaki that it was terminating her employment because of her behavior and quality of patient care.

On August 30, 2017, Dr. Janaki’s then-counsel received a letter from CPG’s regional counsel stating that “[t]he hospital informed CPG that it no longer wanted Dr. Janaki to provide services under the CPG contract.” Dr. Janaki subsequently filed a petition against appellees, alleging they retaliated against her in violation of Texas Health and Safety Code § 161.134, which prohibits retaliation against an employee of a hospital, mental health facility, or treatment facility for reporting violations of law. See TEX. HEALTH & SAFETY CODE ANN. § 161.134.

Each appellee filed a traditional motion for summary judgment. CPG sought summary judgment on the basis that § 161.134 only protects against retaliation by “hospitals, mental health facilities, and treatment facilities” none of which described CPG. Id. § 161.134(a). The Cancer Centers and Hospitals sought summary judgment on the basis that § 161.134 only provides relief for employees of hospitals and treatment facilities and that Dr. Janaki was not an employee of any of their facilities or businesses. See id. In response, Dr. Janaki alleged that CPG, the Hospitals, and the Cancer Centers operated as “a single, integrated enterprise” as set out by the Fifth Circuit in discrimination cases under Title VII of the Civil Rights Act of 1964. See Trevino v. Celanese Corp., 701

Medicare Enrollment Application CMS 8551 (effective Dec. 1, 2018), https://www.cms.gov/Medicare/CMS- Forms/CMS-Forms/Downloads/cms855i.pdf (last visited March 1, 2021).

A hospital or other provider may submit a claim for services provided by a physician under a contractual arrangement between the physician or physician group and the hospital. See CTR. FOR MEDICARE & MEDICAID SERVS., Medicare Claims Processing Manual, § 30.2.7 (2020), https://www.cms.gov/Regulations-and-Guidance/Guidance/Manuals/Downloads/clm104c01.pdf (last visited March 1, 2021).

F.2d 397, 403–04 (5th Cir. 1983) (noting that “superficially distinct entities may be exposed to liability upon a finding that they represent a single, integrated enterprise”).

After a hearing, the trial court asked each side to provide the court with supplemental briefing. Following the submission of each party’s supplemental briefing, the trial court granted each appellee’s motion for summary judgment and entered a take- nothing judgment in favor of appellees. This appeal followed.

II. STANDARD OF REVIEW We review the trial court’s summary judgment de novo. Provident Life & Accident Ins. v. Knott, 128 S.W.3d 211, 215 (Tex. 2003). “When reviewing a summary judgment, we take as true all evidence favorable to the nonmovant, and we indulge every reasonable inference and resolve any doubts in the nonmovant's favor.” Id. When the trial court’s order does not specify the grounds for its summary judgment, “we must affirm the summary judgment if any of the theories presented to the trial court and preserved for appellate review are meritorious.” Id. at 216. “[T]he party moving for summary judgment bears the burden to show that no genuine issue of material fact exists and that it is entitled to judgment as a matter of law.” Id. (citing TEX. R. CIV. P. 166a). “A fact is ‘material’ only if it affects the outcome of the suit under the governing law.” W. Trinity Props., Ltd. v. Manhattan Mortg. Corp., 92 S.W.3d 866, 869 (Tex. App.—Texarkana 2002, no pet.); see also Garrigues v. Hardie, No. 13-18-00418-CV, 2020 WL 4812636, *8 (Tex. App.— Corpus Christi–Edinburg Aug. 13, 2020, no pet.) (mem. op.). “A movant who conclusively negates at least one essential element of a cause of action is entitled to summary judgment on that claim.” IHS Cedars Treatment Ctr. of DeSoto, Tex., Inc. v. Mason, 143 S.W.3d 794, 798 (Tex. 2004).

III. APPLICABLE LAW A. Retaliation Texas is an at-will employment state. Ritchie v. Rupe, 443 S.W.3d 856, 885 (Tex.

2014). At-will employment allows both employers and employees to “terminate their relationship at any time for any reason unless they contractually agree otherwise.” Hillman v. Nueces County, 579 S.W.3d 354, 358 (Tex. 2019) (citing Ritchie, 443 S.W.3d at 885– 86). However, there are exceptions to at-will employment. See Cont’l Coffee Prods. Co. v. Cazarez, 937 S.W.2d 444, 453 (Tex. 1996); see, e.g., Sabine Pilot Serv., Inc. v. Hauck, 687 S.W.2d 733, 735 (Tex. 1985) (creating the at-will employment exception prohibiting employers from terminating employees for refusing to commit illegal acts) see also Word v. N. Jones Reg’l Health Sys., No. 05-06-00881-CV, 2007 WL 2421500, at *4 (Tex. App.— Dallas Aug. 28, 2007, no pet.) (mem. op.) (“Statutes protecting workers from retaliatory discharge are exceptions to the common law doctrine of employment at will.”). One exception to at-will employment is that:

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