Kessel v. Monongalia County General Hospital Co.

600 S.E.2d 321, 215 W. Va. 609, 21 I.E.R. Cas. (BNA) 618, 2004 W. Va. LEXIS 32
CourtWest Virginia Supreme Court
DecidedMay 19, 2004
Docket31547, 31548
StatusPublished
Cited by14 cases

This text of 600 S.E.2d 321 (Kessel v. Monongalia County General Hospital Co.) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kessel v. Monongalia County General Hospital Co., 600 S.E.2d 321, 215 W. Va. 609, 21 I.E.R. Cas. (BNA) 618, 2004 W. Va. LEXIS 32 (W. Va. 2004).

Opinion

MAYNARD, Chief Justice:

We are called upon to answer a certified question from the Circuit Court of Mononga-lia County. In the exercise of our discretion, *613 we reformulate the certified question as follows: 1

May a public or quasi-public hospital enter into an exclusive contract with a medical service provider that has the effect of completely excluding physicians who have staff privileges at the hospital from the use of the hospital’s medical facilities. 2

For the reasons that follow, we answer the question in the negative. 3

I.

FACTS

The plaintiffs below, Dr. James W. Kessel, Dr. Richard M. Vaglienti, and Dr. Stanford J. Huber, are anesthesiologists who have been granted staff privileges 4 at defendant Monongalia General Hospital (hereafter “Mo-nongalia General” or “the hospital”), a 207-bed acute facility which provides surgical services to patients. The plaintiffs were employees and shareholders of Monongalia Anesthesia Associates, Inc. (hereafter “MAA”) which originally entered into a contract with Monongalia General in 1975 for the provision of anesthesia services. This contract extended indefinitely, with a termination clause upon sufficient advance notice.

In 1987; Monongalia General entered into an exclusive contract with another medical service provider to provide cardiac anesthesia services. At that time, MAA remained the primary provider of all other types of anesthesia services. In 1989, contract negotiations between the hospital and MAA failed to produce an extension of the contract, apparently due in part to the hospital’s desire to add a contractual provision that tied staff privileges of MAA anesthesiologists to the exclusive contract. As a result, MAA continued to provide the primary non-cardiac anesthesia services for the hospital for approximately the next decade without a contract.

In 1999, Monongalia General entered into an agreement with Dr. Mark Bennett and Bennett Anesthesia Consultants, PLLC, defendants below, to exclusively provide all anesthesia services for orthopedic patients at the hospital. Thereafter, the hospital sought a provider for all, save cardiac and orthopedic, general anesthesia services.

At that point, MAA asserted that such actions constituted a reduction in privileges previously granted to its physicians for reasons unrelated to clinical competency in violation of the medical staff bylaws. A hearing was held before the Fair Hearing Panel as provided in the bylaws. 5 The Panel recommended, inter alici^ approval of contracting for anesthesiology services, since the privileges of MAA doctors had not been compromised. MAA appealed the recommendations to the Hospital Board of Directors which essentially accepted the recommendations.

Thereafter, the hospital entered into a contract with Professional Anesthesia Services, Inc., which granted it the exclusive right to provide all other general anesthesia services at the hospital, with the exception of cardiac and orthopedic surgery patients. As a result, even though the plaintiffs maintain privileges at the hospital, they no longer are permitted to provide operative and orthopedic anesthesia in the hospital. 6

*614 The plaintiffs subsequently sued the Hospital, Dr. Bennett, Bennett Anesthesia Consultants, and Professional Anesthesia Services alleging tortious interference with business relationships; due process violation/failure to provide a fair hearing; restraint of trade; breach of contract; and breach of covenants of good faith and fair dealing. The hospital sought summary judgment on every count but the alleged antitrust violation. The circuit court, finding the matter was controlled by a question not yet addressed by this Court, certified the question, set forth above, as dispositive of the hospital’s motion for summary judgment.

II.

STANDARD OF REVIEW

“The appellate standard of review of questions of law answered and certified by a circuit court is de novo.” Syllabus Point 1, Gallapoo v. Wal-Mart Stores, Inc., 197 W.Va. 172, 475 S.E.2d 172 (1996).

III.

DISCUSSION

The plaintiffs argue, first, that Monongalia General’s medical staff bylaws constitute a contract between the plaintiffs and the hospital which the hospital breached. We disagree. “The fundamentals of a legal ‘contract’ are competent parties, legal subject-matter, valuable consideration, and mutual assent. There can be no contract, if there is one of these essential elements upon which the minds of the parties are not in agreement.” Syllabus Point 5, Virginian Export Coal Co. v. Rowland Land Co., 100 W.Va. 559, 131 S.E. 253 (1926). In the instant case, the essential element of valuable consideration is absent. This Court has held that “[t]he doing by one of that which he is already legally bound to do is not a valuable consideration for a promise made to him, since it gives to the promisor nothing more than that to which the latter is already entitled.” Syllabus Point 2, Thomas v. Mott, 74 W.Va. 493, 82 S.E. 325 [1914].” Pursuant to 64 C.S.R. § 12-7.2.1.1 and 7.2.1.1.2 (July 1, 1994), concerning hospital licensure, “[t]he governing authority [of a hospital] shall adopt and amend bylaws which require it to ... [a]pprove the bylaws and regulations of the medical staff[.]” In addition, pursuant to 64 C.S.R. § 12-14.1.4, “[t]he medical staff shall initiate and, with the approval of the governing board of the hospital, adopt rules, bylaws and regulations governing its professional organization and functional work.” Because the hospital was already bound by law to approve the bylaws of the medical staff, and the medical staff was bound to initiate and adopt bylaws, neither party conferred on the other any more than what the law already required. Thus, we conclude that the medical staff bylaws do not constitute a contract. See Gianetti v. Norwalk Hosp., 211 Conn. 51, 557 A.2d 1249 (1989) (ruling that medical staff bylaws, by themselves, do not constitute enforceable contract between hospital and medical staff because hospital board had legal duty to adopt bylaws); Virmani v. Presbyterian Health Services, 127 N.C.App. 71, 488 S.E.2d 284 (1997) (finding that mere enactment of a set of bylaws pursuant to a statute is a preexisting duty and cannot itself constitute consideration for the formation of a contract); O’Byrne v. Santa Monica-UCLA Medical Center, 94 Cal.App.4th 797, 114 Cal.Rptr.2d 575 (Cal.Ct.App.2001) (determining that there was no consideration given for bylaws where hospital had a statutory duty to appoint medical staff, and medical staff had a statutory duty to adopt bylaws and abide by them). 7

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Segal v. Dinsmore & Shohl, LLP
N.D. West Virginia, 2023
Barcus v. Austin
N.D. West Virginia, 2020
Billiter v. Jones
S.D. West Virginia, 2020
Sara v. Saint Joseph Healthcare System, Inc.
480 S.W.3d 286 (Court of Appeals of Kentucky, 2015)
Medical Staff of Avera Marshall Regional Medical Center v. Marshall
857 N.W.2d 695 (Supreme Court of Minnesota, 2014)
Medical Staff of Avera Marshall Regional Medical Center v. Avera Marshall
836 N.W.2d 549 (Court of Appeals of Minnesota, 2013)
Williams v. University Medical Center
688 F. Supp. 2d 1134 (D. Nevada, 2010)
Wahi v. Charleston Area Medical Center, Inc.
562 F.3d 599 (Fourth Circuit, 2009)
Levy v. Clinton Memorial Hospital, Ca2007-05-027 (12-28-2007)
2007 Ohio 7077 (Ohio Court of Appeals, 2007)
Kessel v. Monongalia County General Hospital Co.
648 S.E.2d 366 (West Virginia Supreme Court, 2007)
Wahi v. Charleston Area Medical Center
453 F. Supp. 2d 942 (S.D. West Virginia, 2006)
Nelson v. State Board of Veterinary Medicine
863 A.2d 129 (Commonwealth Court of Pennsylvania, 2004)

Cite This Page — Counsel Stack

Bluebook (online)
600 S.E.2d 321, 215 W. Va. 609, 21 I.E.R. Cas. (BNA) 618, 2004 W. Va. LEXIS 32, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kessel-v-monongalia-county-general-hospital-co-wva-2004.