Lyons v. Saint Vincent Health Center

731 A.2d 206, 1999 Pa. Commw. LEXIS 343
CourtCommonwealth Court of Pennsylvania
DecidedApril 22, 1999
StatusPublished
Cited by5 cases

This text of 731 A.2d 206 (Lyons v. Saint Vincent Health Center) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lyons v. Saint Vincent Health Center, 731 A.2d 206, 1999 Pa. Commw. LEXIS 343 (Pa. Ct. App. 1999).

Opinion

PELLEGRINI, Judge.

Saint Vincent Health Center (St. Vincent) appeals from an order of the Court of Common Pleas of Erie County (trial court) denying its motion for post-trial relief from a decree nisi that restored the clinical privileges of Carol Ann Lyons, M.D. (Lyons), a board-certified radiologist, to St. Vincent’s radiology department.

*207 St. Vincent, located in Erie, Pennsylvania, is a general hospital organized as a private non-profit corporation. In October 1988, St. Vincent entered into an exclusive contract 1 with Clinical Associates in Radiology (CAR), a professional corporation, for it to provide all of the radiology services at St. Vincent as an independent contractor. This contract specifically provided that only CAR physicians would have clinical radiology privileges at St. Vincent and that once any of its physicians left CAR’s employ, those clinical privileges would be forfeited. 2

In December 1984, Lyons was hired as a full-time staff physician with CAR. In March 1985, she applied for and was granted appointment to St. Vincent’s associate medical staff, and concurrent with her appointment, she was granted clinical privileges in St. Vincent’s radiology department. Eventually, Lyons was made a full active medical staff member and was re-appointed to the active medical staff in March 1987, January 1988 and January 1989.

Sometime in 1986, Lyons’ employment with CAR changed from full-time to part-time 3 but in July 1989, it returned to full-time; however, the arrangement only lasted for one week due to unsuccessful negotiations concerning the terms of her employment contract and, effective January 11, 1990, Lyons left CAR’s employment. 4 She then started Professional Building Radiology (PBR), a corporation she had formed while employed by CAR, and began providing a wide range of diagnostic services, including mammograms, ultrasounds and various other procedures.

When Lyons resigned, CAR notified St. Vincent that she was no longer in its employ. In accordance with the terms of its contract with CAR, when Lyons sought to renew her clinical privileges, the St. Vincent’s Board of Trustees (Board) declined to do so; however, her status as a full active medical staff member remained unaffected. Lyons then challenged St. Vincent’s decision not to renew her clinical privileges by invoking the appeal procedures provided under St. Vincent’s Medical *208 Staff By-laws (By-laws). 5 After hearings, the Board re-affirmed the decision to deny Lyons clinical privileges. 6

In August 1991, Lyons then filed an equity action requesting, inter alia, restoration of her clinical privileges. 7 In January 1992, Lyons also commenced a separate breach of contract action 8 asserting that St. Vincent had violated its By-laws by terminating her clinical privileges for reasons not delineated within the By-laws, i.e., the termination of her employment with St. Vincent’s exclusive provider, CAR. Lyons requested damages for loss of earnings as a result of her inability to practice radiology at St. Vincent or its affiliates. Both actions were consolidated for all purposes except trial.

St. Vincent defended both actions contending that its decision not to renew Lyons’ clinical privileges had not violated its By-laws because (1) her clinical privileges were derived from and contingent upon her employment contract with CAR, which was incorporated by reference into the provision of the exclusive contract between St. Vincent and CAR; (2) its decision to withdraw Lyons’ clinical privileges was in accord with the By-laws; and (3) Lyons had not suffered irreparable harm. 9 Ultimately, the case went to trial but all issues of monetary relief, whether at equity or at law, were reserved and deferred. 10

■ Lyons presented witnesses who testified that she was harmed as a result of St. Vincent’s withdrawal of her clinical privileges because she would not have available to her the latest technologies to be able to maintain her skill as a radiologist; her ability to treat patients admitted to St. Vincent would be limited because she could not consult with the admitting physician, which, in turn, adversely affected the patient’s continuum of care; her ability to receive referrals from and establish professional relationships would be impaired; and her ability to recruit an associate would be hindered. Lyons also presented *209 the testimony of Thomas Bradshaw (Bradshaw), vice president of professional services at Saint Joseph’s Hospital in Atlanta, Georgia, as an expert witness in health care administration. He testified that an open staff was the preferred model in hospital administration because of the benefits of competition that it would bring, i.e., that referring physicians would have the option of choosing a radiologist or group that they preferred for the given service. Bradshaw further stated that an open staff provided better coverage for the referring physician. 11

On its behalf, St. Vincent also presented the testimony of a number of witnesses. In general, they testified that the restoration of Lyons’ clinical privileges would be devastating because it would ruin the continuum of care, and create a disruptive force at St Vincent’s in the “complexity of scheduling” when attempting to satisfy the demands for one new physician compared to the demands of the competing group, CAR. They stated that this disruption would preclude cooperation from CAR, making the overall retention of staff, professional and non-professional recruitment difficult. They concluded that Lyons was not injured by the loss of her clinical privileges because her expertise in women’s health would enable her to generate a significant referral base, and she had already developed such a base through her employment relationship with the Imaging Center. 12

After the proceedings, the trial court found that St. Vincent had breached its By-laws by not renewing Lyons’ clinical privileges based upon her leaving CAR’s employ because that was not a criteria contained in the reappointment provisions of the By-laws. It also held that Lyons had suffered irreparable harm because she was unable to use St. Vincent’s radiology equipment or perform in-patient services. As a result, it entered a decree nisi that St. Vincent was “permanently enjoined from impairing, terminating, restricting or attempting to terminate, impair or restrict [Lyons’] privileges in the Department of Radiology at [St. Vincent], and all affiliates thereof, in a manner inconsistent with the *210 adjudication, order, and decree of this Court.” St.

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Bluebook (online)
731 A.2d 206, 1999 Pa. Commw. LEXIS 343, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lyons-v-saint-vincent-health-center-pacommwct-1999.