Hackett v. METROPOLITAN GENERAL HOSP.

465 So. 2d 1246
CourtDistrict Court of Appeal of Florida
DecidedJanuary 30, 1985
Docket84-523
StatusPublished
Cited by1 cases

This text of 465 So. 2d 1246 (Hackett v. METROPOLITAN GENERAL HOSP.) 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
Hackett v. METROPOLITAN GENERAL HOSP., 465 So. 2d 1246 (Fla. Ct. App. 1985).

Opinion

465 So.2d 1246 (1985)

Robert E. HACKETT, M.D. and Robert E. Hackett, M.D., P.A., Appellants,
v.
METROPOLITAN GENERAL HOSPITAL, a Florida Corporation, Appellee.

No. 84-523.

District Court of Appeal of Florida, Second District.

January 30, 1985.
Rehearing Denied March 22, 1985.

*1248 William C. Ballard of Fisher & Sauls, P.A., St. Petersburg, for appellants.

Charlie Luckie, Jr. of Dayton, Sumner, Luckie & McKnight, P.A., Dade City, for appellee.

LEHAN, Judge.

I. Summary of Issues, Facts and Holding

In this antitrust case plaintiff, a doctor, appeals from a final judgment determining after a nonjury trial that no violation of section 542.18, Florida Statutes (1981) (the counterpart of section 1 of the Sherman Act) was established from the refusal by defendant, a hospital, to grant staff privileges at the hospital to plaintiff. We affirm.

The sufficiency of the complaint was established in Hackett v. Metropolitan General Hospital, 422 So.2d 986 (Fla. 2d DCA 1982). Plaintiff, who is a medical doctor specializing in urology, contended that he was refused staff privileges at the hospital "by reason of a conspiracy between the hospital through its board of trustees and the osteopathic physicians on the staff to perpetuate a monopoly for the one staff member practicing urology and to limit the staff to osteopathic physicians, thereby insulating them from competition by medical doctors." Id. at 987. He also contended that there was a violation of section 395.0653, Florida Statutes (1981), prohibiting hospitals from refusing staff privileges to a physician on the sole basis of whether the physician is licensed as a doctor of medicine or a doctor of osteopathy. The trial court disagreed with his contentions and denied his request for an injunction requiring his admission to the staff. His appeal addresses only the antitrust contentions.[1]

*1249 Plaintiff's application for staff privileges at the hospital was rejected by the hospital's staff and by the hospital's board of trustees. He was advised that the basis for his rejection was that the hospital already had adequate urology coverage. There was testimony that the hospital had received no complaints about inadequate urology services. He then contacted the office of Hospital Licensure and Regulation of the Florida Department of Health and Rehabilitative Services (HRS) and a newspaper reporter who had been writing a series of articles on hospital staff privileges, claiming that he had been unlawfully excluded from the staff. Thereafter he followed further procedures under the hospital's bylaws and appeared successively before the Executive Committee of the staff and the Board of Trustees, each of which rejected his application. The board then gave as its basis that plaintiff "would be a disruptive force on the staff." That latter basis for the rejection appears to have derived from plaintiff's actions in contacting HRS and the newspaper, complaining of his rejection. The hospital contends that plaintiff had a lawyer and knew or should have known at the time he contacted HRS and the newspaper that further procedures were available to him under the bylaws. Plaintiff contends he was unaware of those procedures and had been advised by the hospital, following his first rejection by the board, that the decision was final. Included within the evidence in this regard was evidence that prior to contacting HRS and the newspaper plaintiff had consulted his lawyer about his efforts to gain admittance to the hospital staff.

In its final judgment for the defendant the trial court disagreed with the hospital's initial basis for refusing staff privileges to plaintiff, finding that there was a need for a urologist with the qualifications of plaintiff at the hospital. Nonetheless, the trial court concluded that the board sincerely felt that the hospital's urology needs were being fulfilled and that the board was justified in finding that plaintiff would be a disruptive influence. The court found that the rejection of plaintiff's application was not based upon the fact that he was a medical doctor, noting that other medical doctors had been admitted to the staff. The court further found that the decision to deny plaintiff staff privileges was not based upon a desire to create a closed shop or to stifle competition.

Our reasoning for affirming the judgment for defendant can be summarized as follows: Although per se concepts of antitrust liability based upon the group boycott doctrine might on the surface seem to apply, we believe that doctrine is inapplicable here. It is inappropriate to strictly apply the group boycott doctrine, which was created with reference to commercial conduct, to determinations like those in this case involving the composition of a hospital's professional staff. Although there is authority stating that, to impose antitrust liability under the rule of reason, a showing of either anticompetitive purpose or unreasonable anticompetitive effect is sufficient, we believe that in a case like this there should not be liability without a clear showing that the dominant purpose of excluding a physician from a hospital's staff was anticompetitive. We conclude that the record does not establish the existence of a dominant anticompetitive purpose in the decision to exclude plaintiff in this case. In any event, even if a showing of unreasonable anticompetitive effect alone were sufficient to establish a rule of reason violation, *1250 we conclude that the record does not establish an unreasonable restraint on competition in the relevant market.

That reasoning is further explained below.

II. Background

This type of lawsuit has originated only in recent years. The genesis apparently was Goldfarb v. Virginia State Bar, 421 U.S. 773, 95 S.Ct. 2004, 44 L.Ed.2d 572 (1975), to the effect that the learned professions are not exempt from the antitrust laws. In Goldfarb the Supreme Court in a footnote nonetheless indicated that certain practices on the part of those engaged in professions might be lawful even though the same practices would be unlawful in a commercial context:

The fact that a restraint operates upon a profession as distinguished from a business is, of course, relevant in determining whether that particular restraint violates the Sherman Act. It would be unrealistic to view the practice of professions as interchangeable with other business activities, and automatically to apply to the professions antitrust concepts which originated in other areas. The public service aspect, and other features of the professions, may require that a particular practice, which could properly be viewed as a violation of the Sherman Act in another context, be treated differently. We intimate no view on any other situation than the one with which we are confronted today.

Id., 421 U.S. at 788-89 n. 17, 95 S.Ct. at 2013 n. 17, 44 L.Ed.2d at 585. Yet in National Society of Professional Engineers v. United States, 435 U.S. 679, 696, 98 S.Ct. 1355, 1367, 55 L.Ed.2d 637, 653 (1978), the Supreme Court said that the foregoing footnote from Goldfarb "cannot be read as fashioning a broad exemption under the Rule of Reason for learned professions." Thereafter the Supreme Court in Arizona v. Maricopa County Medical Society,

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465 So. 2d 1246, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hackett-v-metropolitan-general-hosp-fladistctapp-1985.