Levine v. Central Florida Medical Affiliates, Inc.

72 F.3d 1538, 1996 WL 5609
Court of Appeals for the Eleventh Circuit·Decided January 23, 1996·No. 94-3145·Published·Cited by 22 cases

Opinion

CARNES, Circuit Judge:

Dr. Scott Levine, the plaintiff, appeals from the district court’s grant of summary judgment in favor of the defendants on his state and federal antitrust claims. The four defendants are Healthchoice, Inc., a preferred provider organization (“PPO”); Central Florida Medical Affiliates, Inc. (“CFMA”), a physicians’ advocacy group organized to supply physician providers to the Healthchoice PPO; Sand Lake Hospital; and Orlando Regional Healthcare System, Inc. (“ORHS”), the hospital’s parent corporation. The incidents giving rise to the lawsuit are Dr. Levine’s unsuccessful attempt to gain provider membership in Healthchoice and CFMA and the temporary suspension of his staff privileges at Sand Lake Hospital. Because we conclude that there is no genuine issue of material fact about Dr. Levine’s failing to establish any anticompetitive effect resulting from being denied membership in Healthchoice and CFMA or from his hospital suspension, and that the defendants are accordingly entitled to judgment as a matter of law, we affirm the district court’s grant of summary judgment in their favor.

*1542 I. BACKGROUND

Because the case has come to us on appeal of summary judgment, we construe the facts in the light most favorable to the nonmovant, in this case Dr. Levine. Forbus v. Sears Roebuck & Co., 30 F.3d 1402, 1403 n. 1 (11th Cir.1994), cert. denied, — U.S. -, 115 S.Ct. 906, 130 L.Ed.2d 788 (1995). The following is a summary of the facts as viewed in the light most favorable to Dr. Levine.

Dr. Scott D. Levine is an internist. In 1989, a year after completing his residency in California, Dr. Levine moved to Orlando, Florida to begin private practice. Although Dr. Levine explored opportunities to join established medical practices as a salaried employee, 1 he ultimately decided to become a sole practitioner. He began his practice in the summer of 1989.

When Dr. Levine began his practice, he sought, and was granted, provisional staff privileges at the ORHS hospitals. 2 ORHS is a nonprofit organization that owns and operates five Orlando area hospitals: Orlando Regional Medical Center (“ORMC”); Arnold Palmer Hospital for Children and Women; Sand Lake Hospital; St. Cloud Hospital; and South Seminole Hospital (ORHS owns only half of it). Dr. Levine primarily exercised his staff privileges at Sand Lake Hospital because it is located across the street from his office. Around October of 1990, after Dr. Levine had successfully exercised his provisional staff privileges for more than a year, ORHS granted him full active staff privileges. During 1990 and 1991, Dr. Levine also applied for, and was granted, staff privileges at several other Orlando area hospitals: the Florida Hospital system, which operates five hospitals; Glenbeigh Hospital; Charter of Orlando South Hospital; and Health Central.

When Dr. Levine acquired provisional staff privileges at Sand Lake Hospital, he agreed to have his name put on the emergency room (“ER”) call list. Each day doctors of various specialties would be “on call” in the ER, which means that if a patient came to the ER and needed to see, for example, an internist, the hospital would contact the internist whose name appeared on the call list for that day. Dr. Levine found that being on the ER call list provided an effective means of building his new practice, and so during his early years in Orlando, he asked to be placed on the list as often as possible. Many of the patients Dr. Levine treated in the ER would continue to see him as their internist after leaving the hospital. In addition, these patients would often refer Dr. Levine new patients. Dr. Levine’s strategy proved lucrative; in 1990, his first full year of private practice, Dr. Levine’s pre-tax net earnings were $553,176 — more than twice the average earnings of Florida internists in private practice that year, according to studies conducted by the American Medical Association.

A. THE DENIAL OF HEALTHCHOICE PPO MEMBERSHIP TO DR. LEVINE

In addition to being on the ER call list, another method of building his practice that Dr. Levine explored was the possibility of becoming a physician provider of Health-choice 3 and CFMA. 4 Healthchoiee is a PPO, which is a form of managed health care coverage in which physicians agree to accept no more than a maximum allowable fee for services rendered to plan enrollees in exchange for a potentially higher volume of patients. CFMA is a physicians’ advocacy group that was organized to supply the Healthchoiee PPO with a panel of physician providers. Dr. Levine had heard that Healthchoiee was one of the largest PPOs in the Orlando area, and he believed that Healthchoiee patients accounted for approximately twenty percent of some member physicians’ practices. Dr. Levine had also heard *1543 that Healthchoice physicians were, in his words, “very pleased with what they’re getting as reimbursement.”

Dr. Levine sought physician provider membership with Healthchoice several times between 1989 and 1990, but Healthchoice denied his request for membership each time, explaining that it did not need any more internists in his geographical area. Believing (incorrectly) that in order to be a member of Healthchoice, one had to be a member of CFMA, Dr. Levine also inquired about membership in CFMA. However, Dr. Levine’s telephone call to CFMA was answered by a Healthchoice employee, and Dr. Levine was again told that it did not need any more internists in his area.

During his first few years of practice, Dr. Levine pursued provider memberships in three other Orlando area PPOs — Health Advantage, Alta, and Aetna. He joined the Health Advantage PPO because it was part of the group health coverage he had purchased for himself and his office staff. When his own health coverage administrators switched to the Alta PPO, Dr. Levine then joined Alta as well. Dr. Levine also applied to become a physician provider of Aetna at the request of a patient, but Aetna denied his application for the same reason that Health-choice had — Aetna already had enough internists in Dr. Levine’s area. Although Dr. Levine received numerous solicitations from other area PPOs inviting him to become a physician provider, he turned down each of those offers.

In January of 1991, Dr. Levine’s practice was so busy that he placed an advertisement in a medical journal to hire a physician as a salaried employee. However, because of events that transpired at Sand Lake Hospital that same month, Dr. Levine decided not to hire another physician for his practice.

B. THE SUSPENSION OF DR. LEVINE’S STAFF PRIVILEGES AT SAND LAKE HOSPITAL

In January of 1991, Cathy Canniff-Gilliam, the Executive Director of Sand Lake Hospital, removed Dr. Levine from the ER call list. A few days later, the executive committee of Sand Lake Hospital voted to suspend Dr. Levine’s remaining staff privileges pending investigation of various patient care concerns. 5

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Levine v. Central Florida Medical Affiliates, Inc., 72 F.3d 1538, 1996 WL 5609 (11th Cir. 1996).

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