Joseph v. Hospital Service District No. 2 of the Parish of St. Mary

805 So. 2d 400, 2001 La.App. 1 Cir. 1951, 2001 La. App. LEXIS 3151, 2001 WL 1659446
CourtLouisiana Court of Appeal
DecidedDecember 28, 2001
DocketNo. 2001 CA 1951
StatusPublished
Cited by9 cases

This text of 805 So. 2d 400 (Joseph v. Hospital Service District No. 2 of the Parish of St. Mary) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Joseph v. Hospital Service District No. 2 of the Parish of St. Mary, 805 So. 2d 400, 2001 La.App. 1 Cir. 1951, 2001 La. App. LEXIS 3151, 2001 WL 1659446 (La. Ct. App. 2001).

Opinion

UGONZALES, Judge.

In this appeal, a hospital service district and its chief executive officer challenge a trial court judgment rendered in an open meetings law enforcement action.

FACTUAL AND PROCEDURAL BACKGROUND

The SMA Anesthesia Contract and the Change in Lakewood Medical Center Administration

In December of 1990, Hospital Service District Number 2 of the Parish of St. Mary d/b/a Lakewood Medical Center (Lakewood) entered into a contract with St. Mary Anesthesia Associates, Inc. (SMA) to provide round-the-clock anesthesia services at Lakewood Medical Center (LMC) in Morgan City, Louisiana. Under the contract, which automatically renewed on an annual basis from 1990 through the year 2000, SMA was the exclusive anesthesia services provider at LMC. The contract allowed SMA to terminate the agreement with notice for any reason and allowed Lakewood to terminate the agreement for cause. In 1998, Lakewood contracted with Dr. Willie J. Joseph, III, an anesthesiologist and the president of SMA, to be the Medical Director of Anesthesia Services at LMC for a three-year period. The latter contract with Dr. Joseph was terminable upon the termination of the anesthesia services contract with SMA.

Effective May 1, 2000, Our Lady of the Lake Hospital (OLOL) entered into an agreement with Lakewood to manage, operate, and administer LMC. Under the agreement, Mr. Clifford Broussard became the chief executive officer (CEO) of LMC. Lakewood’s Board of Commissioners (Board) retained full authority and ultimate control of LMC and was responsible for establishing general operating policies to be implemented by Mr. Broussard as CEO.

Mr. Broussard testified at trial that, upon his arrival at LMC, he became aware that the hospital had been losing money for several years. He further discovered there was internal turmoil on the medical staff and that there was a need for cohesiveness if LMC was to survive in the competitive market. He began to search for ways to improve LMC from a performance improvement standpoint.

1¿Review of the SMA Contract and Events That Followed

In June of 2000, Mr. Broussard reviewed the anesthesia services contract between Lakewood and SMA. His impression was that the contract benefited SMA, which allowed the corporation to cancel at its discretion at the end of any term, but that Lakewood did not have a similar option and could only terminate the contract for cause. He was also concerned that the contract was automatically renewable for an indeterminate term. He submitted the contract to Lakewood’s legal counsel for review. Soon thereafter, Mr. Broussard [402]*402met Dr. Joseph and expressed his concern regarding the SMA contract. He requested that Dr. Joseph, as Medical Director of Anesthesia Services, take a leadership role in a performance improvement ad hoc committee that had'been formed to review anesthesia services at LMC. Dr. Joseph refused to participate, indicating that this committee was merely the resurrection of a prior attempt by certain members of LMC’s medical staff to re-write the hospital’s anesthesia policy manual and that such was not necessary. Mr. Broussard later directed Dr. Joseph to participate in the committee, and Dr. Joseph again refused.

In light of what Mr. Broussard perceived as an “inability of Dr. Joseph to work in an administrative organization fashion,” because he had already decided the SMA contract was not in Lakewood’s interest, and in an effort to improve LMC’s business environment, Mr. Brous-sard decided that termination of the SMA contract was necessary.

Over the following months, several events involving anesthesia services at LMC occurred. In July of 2000, criticism of the hospital’s anesthesia services was expressed at a meeting attended by Doctors Anthony Sáleme and Murali Davuluri, pediatricians who practiced at LMC. In response, Drs. Sáleme and Davuluri wrote a letter to Mr. Broussard and to Mr. James Broussard, Chairman of the Board, communicating their concern over the criticism. The pediatricians indicated their impression that the “present anesthesia service has been a stable force within the hospital over the past decade” and urged the recipients of the letter to “be careful and cautious in attempting to solve the problem” and to “listen to all sides of the story before deciding on a solution.”

Ifiln August of 2000, Dr. Joseph was required to respond to a report received by the administration that obstetric nurses were allegedly being required to perform anesthesia-related procedures beyond the scope of their duties. Dr. Joseph denied the allegations and requested, on his behalf and for Dr. Brumfield, that the source of the accusations be made known to them. According to Dr. Joseph, no response was ever received. Further, a flier introduces into the record indicates that, at the time this inquiry was being conducted, a nurses’ workshop on the management of epidural analgesia was being offered at LMC.

On October 13, 2000, an incident occurred at LMC whereby Dr. Michelle Brumfield, the SMA anesthesiologist on call, was contacted regarding a pregnant patient requesting epidural anesthesia. Dr. Brumfield consulted with Dr. Rand Dooley, the obstetrician on call, a pain management plan was put into place, and the patient’s medical records were ordered from the hospital where she had received prior care. By the time Dr. Brumfield received the relevant information, Dr. Dooley was in the process of delivering the patient’s child.

By letter dated October 24, 2000, Mr. Broussard requested that Drs. Joseph and Brumfield appear before the Board on the following day to discuss the October 13, 2000 incident. After Drs. Joseph and Brumfield requested that the issue be addressed in open session, they were notified by Mr. Broussard, on October 25, 2000, that the matter had been deferred to LMC’s Medical Executive Committee and that the Board would address the matter after receiving the committee’s recommendation. Mr. Broussard admitted that he discussed the October 13, 2000 incident with several Board members.

The Executive Sessions and Termination of the SMA Contract

At an executive session of the Board on October 25, 2000, Mr. Broussard informed [403]*403the Board of his intent to terminate the SMA contract. In a letter to Mr. James Broussard, dated October 30, 2000, Mr. Broussard recommended personally and on behalf of OLOL “that should the Board decide on a course of action to address the issues surrounding [SMA] that (1) it decide to address the viability of the contract under Louisiana law concerning contracts of indeterminate duration and (2) ... that this issue be ^handled by a law firm of sufficient expertise and resources to give the service district adequate representation.” Mr. Broussard also stated that he and OLOL would “follow the direction of the Board nonetheless and assist in the direction it chooses to go,” but merely wished to give a statement of their position.

On November 1, 2000, the Board held a special meeting, at which several items of business, not including the SMA contract, were discussed in open session. Toward the end of the meeting, the Board went into executive session to discuss strategic planning. There is no evidence in the minutes of the meeting, or otherwise in the record, to reflect what particular matter was discussed in the executive session.

By letter dated November 1, 2000, and received by Dr. Joseph on November 6, 2000, Mr.

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805 So. 2d 400, 2001 La.App. 1 Cir. 1951, 2001 La. App. LEXIS 3151, 2001 WL 1659446, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joseph-v-hospital-service-district-no-2-of-the-parish-of-st-mary-lactapp-2001.