Eusterman v. Northwest Permanente, P.C.

129 P.3d 213, 204 Or. App. 224, 2006 Ore. App. LEXIS 138
CourtCourt of Appeals of Oregon
DecidedFebruary 8, 2006
Docket0004-03269; A120010
StatusPublished
Cited by16 cases

This text of 129 P.3d 213 (Eusterman v. Northwest Permanente, P.C.) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eusterman v. Northwest Permanente, P.C., 129 P.3d 213, 204 Or. App. 224, 2006 Ore. App. LEXIS 138 (Or. Ct. App. 2006).

Opinion

*226 ORTEGA, J.

Plaintiff, a physician, appeals a summary judgment in favor of defendants Northwest Permanente, P.C. (Northwest), plaintiffs former employer, and Kaiser Foundation Health Plan of the Northwest (Kaiser), a provider of managed care services. In essence, plaintiffs theory is that Northwest terminated his employment because of defendants’ concerns about his approval of time off for injured workers, his changes in other doctors’ diagnoses, and his efforts to obtain an osteopathic treatment for a patient, and that such concerns were motivated by finances, not medical judgment. Plaintiff claims that Northwest wrongly discharged him because he fulfilled public duties relating to patient care and that Kaiser tortiously interfered with his employment contract with Northwest. Because we conclude that plaintiff failed to establish an essential element of each of his claims— the existence of a public duty to support his wrongful discharge claim and the existence of improper means or an improper motive to support his claim for intentional interference with economic relations — we affirm.

This appeal arises from a summary judgment, so we view the facts and inferences in the light most favorable to plaintiff, the nonmoving party. ORCP 47 C. The record, viewed in the light most favorable to plaintiff, contains the following facts.

Northwest is a professional corporation of medical doctors. It had a contractual relationship with Kaiser, under which Northwest was exclusively responsible for the provision of all medical services that Kaiser required. As relevant here, Kaiser, in turn, contracted with employers and insurers to have Northwest physicians provide medical care services for injured workers.

Plaintiff was one of the physicians who provided those occupational health services. Plaintiff was a locum tenens physician, which meant that he did not have patients of his own but filled in and provided outpatient care when a patient’s primary physician was unavailable. He worked for Northwest for 14 months under a series of term contracts that, among other provisions, allowed for his termination *227 without cause on 30 days’ notice or with 30 days’ pay. The contract also gave Northwest medical staff the right to determine the manner in which plaintiff would provide treatment.

The vast majority — about 90 to 95 percent — of plaintiff s patients were seeking treatment for workplace injuries covered by workers’ compensation insurance. When an injured worker was unable to return to work for a period of time, Northwest doctors were to approve time off or “time loss days.” Kaiser uses information about time loss days authorized by its associated physicians to sell its managed care services to insurers such as the State Accident Insurance Fund (SAIF). Defendants communicated to plaintiff and other Northwest doctors that a low incidence of time loss days was financially advantageous for Kaiser. For example, about six months before plaintiffs employment ended, plaintiff and others, including Kaiser case managers, attended a meeting in which, according to the minutes, they were told that “our time loss days have again increased,” making Kaiser less competitive with other managed care organizations.

Because of the attention that defendants paid to time loss, plaintiff felt pressured to release workers to return to work earlier than he deemed appropriate. Kaiser case managers automatically became involved when a doctor approved time loss of more than 10 or 20 days. During his employment, plaintiff was given a memo (dated three years before the start of his employment) that announced a contract between Kaiser and SAIF for managed care services and stated, “We are now at FINANCIAL RISK for the time loss we authorize. Please authorize time off work only if it is MEDICALLY NECESSARY.” (Emphasis in original.) Kaiser sent monthly reports to all Northwest physicians that summarized each doctor’s time loss authorizations. An explanation at the top of the reports states:

“This is routine information we are providing for our SAIF Corporation [managed care] contract. Every month all clinicians who have seen SAIF covered workers and who have authorized time loss will receive this report. We are not attempting to assess medical appropriateness of these [time loss days] but are providing the information so you can assess it. Please authorize only medically necessary *228 time loss. Rapid return to work speeds recovery and reduces costs. If the worker can be released to light duty, please do so. Thanks.”

Plaintiff perceived these reports as a form of pressure. On occasion, plaintiff told some of his colleagues that he felt that money was too much of a concern.

Plaintiff also was involved in some disputes regarding the appropriate diagnoses and treatment plans for patients. He and other doctors disagreed about whether one patient had a degenerative, employment-related condition and about when another patient’s finger splint should be removed. Plaintiff was once told that he would not be allowed to see a particular patient unless he agreed not to change the patient’s diagnosis or treatment plan, although he did eventually see the patient despite his refusal to assent to such an agreement. On another occasion, plaintiff changed another doctor’s diagnosis from tendinitis to carpal tunnel syndrome; plaintiff believed that objections to that change in diagnosis were motivated by anger about the additional time loss. In e-mail messages regarding two patients, Kaiser employees wrote to plaintiffs superiors at Northwest to question his diagnoses and treatment plans.

Plaintiff also was involved in disputes regarding the use of a procedure called osteopathic manipulative treatment (OMT). Although Northwest’s and Kaiser’s written policies did not prohibit the use of OMT, plaintiffs superiors, Drs. Thiessen and McDonald, eventually instructed him not to use it. Plaintiff s superiors had a negative view of OMT and believed it could be dangerous for plaintiff to perform it. Plaintiff acknowledges that Northwest could forbid his performance of OMT, and he did not use the procedure after being told not to do so. Nevertheless, plaintiff wanted to refer a patient to an external doctor of osteopathy for OMT and was frustrated when his superiors told him that, if a patient could be seen internally, the patient could not be referred externally. Plaintiff knew of no one within Northwest who provided OMT.

Shortly before plaintiffs termination, he met with Thiessen and McDonald to discuss OMT. Soon after the *229 meeting, Thiessen and McDonald decided to terminate plaintiffs contract. Their decision was ratified in a meeting of an occupational medicine group that included Kaiser employees, and plaintiffs employment was terminated the next day. According to plaintiff, when McDonald informed plaintiff of his termination, he stated that one or two Kaiser case managers had insisted that plaintiff be terminated, even though McDonald thought plaintiff was an excellent doctor and had tried to keep him on.

In response to his termination, plaintiff asserted tort claims against Northwest and Kaiser, and they filed motions for summaiy judgment.

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Cite This Page — Counsel Stack

Bluebook (online)
129 P.3d 213, 204 Or. App. 224, 2006 Ore. App. LEXIS 138, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eusterman-v-northwest-permanente-pc-orctapp-2006.