Martin v. Memorial Hospital at Gulfport

881 F. Supp. 1087, 1995 U.S. Dist. LEXIS 9992
CourtDistrict Court, S.D. Mississippi
DecidedMarch 1, 1995
Docket1:90-cv-00491
StatusPublished

This text of 881 F. Supp. 1087 (Martin v. Memorial Hospital at Gulfport) is published on Counsel Stack Legal Research, covering District Court, S.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Martin v. Memorial Hospital at Gulfport, 881 F. Supp. 1087, 1995 U.S. Dist. LEXIS 9992 (S.D. Miss. 1995).

Opinion

MEMORANDUM OPINION AND ORDER

PICKERING, District Judge.

This matter is before the Court on Motion for Summary Judgment filed on behalf of the Defendants. The Court having reviewed the Motion, the Response, the Briefs of counsel, the authorities cited and being otherwise fully advised in the premises finds as follows, to wit:

*1090 FACTUAL BACKGROUND

This is a complex case involving a fight between two doctors and a hospital. It involves one of the most hotly debated issues of our times, medical costs and competition. The Plaintiff, Dr. James Martin, has sued Memorial Hospital at Gulfport and the members of the Board of Trustees of the hospital contending that they have wrongfully precluded him from providing chronic kidney dialysis treatment in Memorial’s Chronic Dialysis Units for the treatment of End Stage Renal Disease, or ESRD. End Stage Renal Disease units or ESRD units are kidney dialysis units where chronic renal dialysis is performed, generally on an out-patient basis. Chronic ESRD units are defined under Mississippi law as “healthcare facilities,” Miss.Code Ann. § 41-7-173(h)(v), and as such are regulated by the Mississippi State Department of Health. Chronic ESRD units cannot be established, expanded or relocated unless a certificate of need is obtained from the State Department of Health. See Miss. Code Ann. § 41-7-191. Memorial has the certificate of need for chronic ESRD units in Biloxi, Gulfport, and Bay St. Louis, Mississippi.

Memorial Hospital began operation of its chronic ESRD units in 1981 after control of the units were transferred to Memorial by the Singing River Hospital System. 1 After assuming operation of the ESRD units, Memorial entered into a medical director contract with Dr. Douglas Lanier of Gulfport, which it later interpreted to be an exclusive contract.

In 1986, Memorial Hospital assisted Dr. Lanier in recruiting the plaintiff, Dr. Martin, to come to Gulfport to practice with Dr. Lanier. Upon joining practice with Dr. La-nier, Dr. Martin obtained full medical staff privileges at Memorial Hospital and full access to Memorial’s chronic ESRD units. In his practice with Dr. Lanier, Dr. Martin’s practice encompassed internal medicine and nephrology including chronic dialysis in Memorial’s ESRD units. Nephrology is an internal medicine subspecialty dealing with the kidneys. Chronic renal dialysis falls within the nephrology practice. Dr. Lanier is board certified in nephrology, Dr. Martin is not.

In November 1988, Dr. Lanier terminated Dr. Martin and Dr. Martin began practicing medicine separately from Dr. Lanier. Dr. Martin made no attempt to perform chronic dialysis at any of Memorial’s chronic ESRD units until March 1989 when he sought to admit a patient for chronic dialysis to the Gulfport facility. Dr. Martin was not allowed to perform the chronic dialysis because of the contract between Memorial and Dr. Lanier.

The Defendants assert that the medical director contract provided that only Dr. La-nier or someone “in association with him” had the right to perform chronic dialysis in Memorial’s ESRD units. The original contract, however, actually provides that either Dr. Lanier or “his designated representative” could perform dialysis in the chronic ESRD units. During the course of this controversy, Dr. Lanier agreed to designate Dr. Martin as his representative, however, the Board of Trustees of the Hospital entered a resolution which they characterized as reaffirming the exclusive medical director contract with Dr. Lanier which limits the use of the facilities to Dr. Lanier or someone “who is in association with Dr. Lanier and who works under the supervision and control of Dr. Lanier and for whose actions Dr. Lanier accepts full responsibility.” 2

*1091 After being denied access to the chronic ESRD unit at Gulfport, Dr. Martin wrote Memorial asserting that he had a right to treat patients in Memorial’s chronic ESRD units. After receiving Dr. Martin’s complaints the Defendants re-evaluated Dr. La-nier’s contract and on June 26, 1989, passed the previously mentioned resolution reaffirming the exclusive medical director contract with Dr. Lanier.

Dr. Martin contends that the exclusive contract between Memorial and Dr. Lanier is, 1) the result of a conspiracy in restraint of competition and, 2) infringes on his ability to practice medicine in his subspecialty of ne-phrology and therefore restricts his staff privileges. The Defendants assert that they have in no way reduced the medical staff privileges that Dr. Martin enjoys at Memorial Hospital. In fact his medical staff privileges were renewed in November 1990 and he currently retains full medical staff privileges at Memorial Hospital.

On September 28, 1990, Dr. Martin filed the instant action contending that Memorial and the Board of Trustees violated federal antitrust laws, deprived him of his constitutional due process rights, violated his rights under color of state law (§ 1983 claims), interfered with his contractual relationships with patients and violated the Mississippi antitrust laws. Defendants assert that Plaintiffs claims fail as a matter of law because they are entitled to immunity from the federal antitrust claims under the state action doctrine; that they are entitled to immunity under the Local Government Antitrust Act, 15 U.S.C. §§ 34, 36; that Dr. Martin has not been deprived of a property right without due process of law; that Defendants have acted in accordance with state law in entering into and maintaining the exclusive contract with Dr. Lanier and that such actions did not violate the Mississippi antitrust laws; and that the Board members are entitled to qualified immunity on Dr. Martin’s constitutional due process and state law claims.

Dr. Lanier was initially named as a defendant. Along the way, Dr. Lanier and Dr. Martin entered a settlement agreement. Consequently, only the hospital and its board members remain as defendants.

Memorial Hospital is a community hospital existing under Miss.Code Ann. § 41-13-10 et seq. It is jointly owned by the City of Gulfport and the Gulfport-West Harrison County Hospital District, making it a subdivision of the State of Mississippi or a municipal corporation thereof. See Enroth v. Memorial Hospital at Gulfport, 566 So.2d 202, 206 (Miss.1990).

STANDARD OF REVIEW

The Federal Rules of Civil Procedure, Rule 56(c) authorizes summary judgment where “the pleadings, depositions, answers to interrogatories and admissions on file, together with affidavits, if any, show that there is no genuine dispute as to any material fact and that the moving party is entitled to judgment as a matter of law.” Celotex Corporation v. Catrett, 477 U.S.

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Bluebook (online)
881 F. Supp. 1087, 1995 U.S. Dist. LEXIS 9992, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martin-v-memorial-hospital-at-gulfport-mssd-1995.