Fred Holland v. Mercy Health

CourtCourt of Appeals for the Sixth Circuit
DecidedJuly 15, 2022
Docket21-3980
StatusUnpublished

This text of Fred Holland v. Mercy Health (Fred Holland v. Mercy Health) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fred Holland v. Mercy Health, (6th Cir. 2022).

Opinion

NOT RECOMMENDED FOR PUBLICATION File Name: 22a0285n.06

Case No. 21-3980

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT FILED Jul 15, 2022 ) DEBORAH S. HUNT, Clerk FRED W. HOLLAND, M.D. ) Plaintiff - Appellant, ) ) v. ) ON APPEAL FROM THE UNITED ) STATES DISTRICT COURT FOR THE MERCY HEALTH; MERCY HEALTH – ) NORTHERN DISTRICT OF OHIO ST. VINCENT, ) Defendants - Appellees. ) )

Before: GIBBONS, WHITE, and NALBANDIAN, Circuit Judges.

JULIA SMITH GIBBONS, Circuit Judge. Fred W. Holland, M.D., appeals the district

court’s grant of summary judgment in favor of Mercy Health – St. Vincent’s Medical Center (“St.

Vincent”), one of his two former joint employers. Dr. Holland asserted national origin and race

discrimination claims under Title VII, 42 U.S.C. § 2000(e), and 42 U.S.C. § 1981, as well as state-

law claims against St. Vincent. Holland, a cardiothoracic surgeon, alleged that St. Vincent’s then-

Senior Vice President and Chief Physician Executive Officer, Dr. Imran Andrabi, and its then-

Medical Director of Cardiothoracic Surgery, Dr. Fayyaz Hashmi, who are both of Pakistani origin,

discriminated against him because he is an American-born Caucasian. We affirm the district

court’s grant of summary judgment. No. 21-3980, Holland v. Mercy Health

I

The Toledo Clinic (“TC”) and St. Vincent jointly employed Holland as a cardiothoracic

surgeon operating from St. Vincent’s facilities.1 Before hiring Holland, TC did not have any

cardiothoracic surgeons on staff and believed that adding one to whom its cardiologists could refer

patients would be economically advantageous. At the same time, St. Vincent’s cardiothoracic

surgery department had an opening for a third surgeon. To serve these mutual interests, St. Vincent

and TC signed a Services Agreement in December 2012 to create an employment structure for a

new surgeon.

The Services Agreement provided that TC would hire a cardiothoracic surgeon and assign

him to perform his work at St. Vincent and that St. Vincent would provide the facilities, equipment,

and personnel for the surgeon. St. Vincent and TC agreed that St. Vincent would pay TC a set

yearly rate for five years to compensate for the surgeon’s salary, benefits, and other related

expenses; TC would, in turn, pay the surgeon. The Services Agreement had a term of five years,

“unless terminated sooner.” DE 129-51, Services Agreement, Page ID 13000. Either St. Vincent

or TC could terminate the Services Agreement after one year without cause by giving the other

party ninety days prior written notice. St. Vincent and TC worked together to recruit a surgeon to

serve their agreement and hired Holland in January 2013. Holland and TC entered into an

Employment Agreement. Unlike the Services Agreement between St. Vincent and TC, the

Employment Agreement did not have any specific end date; instead, either party could terminate

the employment at any time, and for any reason, with ninety days’ notice.

1 In Holland v. Mercy Health, 495 F. Supp. 3d 582, 592 (N.D. Ohio 2020), the district court granted Mercy Health summary judgment, finding Mercy Health—the grandparent entity of St. Vincent and an initial defendant in this lawsuit—was not Holland’s joint employer. -2- No. 21-3980, Holland v. Mercy Health

Cardiologists who referred patients to St. Vincent for treatment could specify which

surgeon would treat the patient. Holland, like St. Vincent’s other cardiothoracic surgeons, received

referrals that were directed to him. For referrals that were not surgeon-specific, St. Vincent had a

system for distributing the referrals. This system is explained in a 2013 email by Dr. Jim Burdine,

another cardiothoracic surgeon in the department at that time. That email stated that the surgeon

present or on call at the time the referral came in would determine which surgeon would treat the

patient, unless the referring physician requested a particular surgeon. Holland contests whether

St. Vincent followed this procedure. Instead, he alleges that Andrabi, through his control of

Hashmi, and Hashmi, through his role as Medical Director of the department, discriminatorily

controlled the referral system by having St. Vincent’s office manager divert referrals to Hashmi or

by having the referring physicians call Hashmi directly. Notably, Hashmi stepped down as

Medical Director around August 2015; he was replaced by Dr. Christopher Phillips, a Caucasian

American who joined St. Vincent’s cardiothoracic surgery department. The record is devoid of

evidence that Holland’s referral volumes changed significantly after Phillips became Medical

Director.

While practicing at St. Vincent, Holland often complained to St. Vincent officials and

personnel about the fact that Hashmi received many more referrals than he did and offered his

views that Hashmi was a poor surgeon. By late 2014, Holland shifted his focus to developing a

cardiothoracic surgery practice at another local Mercy hospital, Mercy Health – St. Anne (“St.

Anne”).2 Holland also continued performing some surgeries at St. Vincent.

2 St. Vincent and St. Anne are wholly owned subsidiaries of Mercy Health. Holland, 495 F. Supp. 3d at 591. -3- No. 21-3980, Holland v. Mercy Health

On November 28, 2016, after operating under the Services Agreement for almost four

years, St. Vincent decided to terminate it based on Holland’s failure to build a practice at St.

Vincent and his poor relationships with his fellow surgeons, particularly Hashmi. Prior to

terminating the Agreement, St. Vincent’s then-interim President, Thomas J. Arquilla, met with his

executive team to discuss Holland’s future with St. Vincent. The group included Andrabi, who

had been promoted to CEO of Mercy Health’s Toledo region, Brad Bertke, St. Anne’s President,

and Katrine English, General Counsel. The Services Agreement with TC regarding Holland was

due for possible renewal in a year or so. During the group’s meetings, they decided that the

Services Agreement “no longer benefited the business purposes of Mercy.” DE 64, Arquilla Dep.,

Page ID 1581. The Services Agreement had been in effect for nearly four years, and Arquilla

believed Holland failed “to get enough support to eventually, in [Arquilla’s] opinion, be successful

and that the volume needed to grow at St. Anne’s was not happening fast enough.” Id. Arquilla

further explained that the Services Agreement had been an “experiment” designed to strengthen

the relationship between St. Vincent and TC and result in TC cardiologists referring their patients

to St. Vincent cardiothoracic surgeons. DE 117-10, Arquilla Dep., Page ID 10205–08. But

Holland’s “relationship[s]” with “his partners” were not “working,” and St. Vincent “no longer

could be a party to an agreement with the Toledo Clinic when the guy that they had chosen couldn’t

get along with the other guys, particularly Hashmi.” DE 64, Arquilla Dep., Page ID 1642, 1644.

Arquilla testified that he did not recommend terminating the Services Agreement because Holland

failed to generate any income for St. Vincent, but because the “relationship” between the clinics

was not working—in part due to Holland himself—and “[w]e had to have our own employed

cardiac surgeon.” DE 117-10, Arquilla Dep., Page ID 10205–06. Arquilla gave TC the required

-4- No.

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Fred Holland v. Mercy Health, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fred-holland-v-mercy-health-ca6-2022.