Medical Society of New Jersey v. Mottola

320 F. Supp. 2d 254, 2004 U.S. Dist. LEXIS 10354, 2004 WL 1246015
CourtDistrict Court, D. New Jersey
DecidedJune 8, 2004
DocketCiv. 04-2126 (WGB)
StatusPublished
Cited by4 cases

This text of 320 F. Supp. 2d 254 (Medical Society of New Jersey v. Mottola) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Medical Society of New Jersey v. Mottola, 320 F. Supp. 2d 254, 2004 U.S. Dist. LEXIS 10354, 2004 WL 1246015 (D.N.J. 2004).

Opinion

OPINION

BASSLER, District Judge.

This matter comes before the Court on the motion of plaintiff Medical Society of New Jersey (“MSNJ” or “Piaintiff’) for an order enjoining Mary Lou Mottola, Executive Director of the Medical Practitioner Review Panel, and Reni Erdos, Director of the Division of Consumer Affairs, both sued in their official capacities (collectively “Defendants”), from publishing information regarding settlement agreements of malpractice claims entered into by New Jersey doctors. Specifically, Plaintiffs motion seeks two forms of relief from this Court. First, Plaintiff seeks to enjoin Defendants from enforcing the New Jersey Health Care Consumer Information Act, N.J.S.A. § 45:9-22.21, et seq. (“NJHCCIA”), which was enacted by the New Jersey Legislature on June 23, 2003 and is scheduled to become effective June 23, 2004. Second, Plaintiff seeks to enjoin Defendants from disclosing to North Jersey Media Group, Inc., d/b/a The Record (“The Record”) certain information contained on medical malpractice payment notices submitted to the State of New Jersey (“the State” or “New Jersey”) pursuant to N.J.S.A. § 17:30D-17.

Defendants oppose the motion for preliminary injunction and cross-move to dismiss the Complaint pursuant to Fed. R.Civ.P. 12(b)(1) & (6).

The Record, a daily newspaper with circulation in northern New Jersey, moved to intervene in this action and filed opposition to Plaintiffs request for injunctive relief.

This Court properly exercises jurisdiction over Plaintiffs federal claims pursuant to 28 U.S.C. § 1331. Venue is proper pursuant to 28 U.S.C. § 1391(b).

This Court held oral argument on June 7, 2004 and issued an oral Opinion from the bench as well as a written Order. This *258 Opinion supercedes the Court’s oral Opinion on June 7th.

For the reasons stated below, Plaintiffs motion for preliminary injunctive relief is denied. Defendants’ motion to dismiss pursuant to Rule - 12(b)(1) is denied, and the motion pursuant to Rule 12(b)(6) is granted.

BACKGROUND

MSNJ was founded in 1766 and is the nation’s oldest state society of physicians. Approximately 8,000 physiciáns hold individual memberships in MSNJ, and MSNJ is one of New Jersey’s leading voices representing doctors in the health care field.

MSNJ moves for a preliminary injunction on two distinct grounds. First, MSNJ seeks to enjoin Defendants from enforcing the NJHCCIA, in particular the section mandating that medical malpractice data be made available to the public through the Internet and a toll-free consumer phone line. Second, MSNJ seeks to enjoin Defendants from complying with a March 9, 2004 Order of the Honorable Sybil R. Moses, Assignment Judge, Superior Court of New Jersey, Bergen County, which ordered Defendants to disclose to The Record certain information contained on medical malpractice payment notices submitted to the State Board of Medical Examiners pursuant to New Jersey law.

I. STATUTORY FRAMEWORK

A. Federal Law

In 1986, Congress passed the Health Care Quality Improvement Act of 1986 (“HCQIA”), 42 U.S.C. § 11101, et seq. The HCQIA requires that certain information regarding malpractice payments, sanctions, and professional review actions taken with respect to medical professionals be reported to the federal government. 42 U.S.C. §§ 11131-7 (Subchapter II). Specifically, the HCQIA requires that “[e]ach entity (including an insurance company) which makes payment under a policy of insurance, self-insurance, or otherwise in settlement (or partial settlement) of, or in satisfaction of a judgment in, a medical malpractice action or claim shall report ... information respecting the payment and circumstances thereof.” 42 U.S.C. § 11131(a). The information reported pursuant to the HCQIA includes:

(1) the name of any physician or licensed health care practitioner for whose benefit the payment is made,
(2) the amount of the payment,
(3) the name (if known) of any hospital with which the physician or practitioner is affiliated or associated,
(4) a description of the acts or omissions and injuries or illnesses upon which the action or claim was based, and
(5) such other information as the Secretary determines is required for appropriate interpretation of information reported under this section.

Id. § 11131(b).

The regulations promulgated pursuant to the HCQIA established the National Practitioner Data Bank (“Data Bank”) to collect and organize the reported information as required by the HCQIA. 45 C.F.R. § 60.1. The Data Bank created a centralized clearinghouse for state licensing boards, hospitals and other healthcare entities to obtain relevant background information about physicians. An insurer must, within 30 days of payment, directly report to the Data Bank all medical malpractice payments, including settlements and partial settlements, made with respect to each insured physician. 45 C.F.R. § 60.7.

Hospitals are required to request information from the Data Bank with respect to each physician or health care practitioner who applies for staff membership or clinical privileges. 42 U.S.C. § 11135. Insurance carriers are required not only to make reports to the Data Bank but also to *259 the appropriate state licensing board. 42 U.S.C. § 11134(c); 45 C.F.R. § 60.7. Moreover, the Data Bank makes the information it collects available “to State licensing boards, to hospitals, and to other health care entities (including health maintenance organizations) that have entered (or may be entering) into an employment or affiliation relationship with the physician or practitioner or to which the physician or practitioner has applied for clinical privileges or appointment to the medical staff.” 42 U.S.C. § 11137(a).

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320 F. Supp. 2d 254, 2004 U.S. Dist. LEXIS 10354, 2004 WL 1246015, Counsel Stack Legal Research, https://law.counselstack.com/opinion/medical-society-of-new-jersey-v-mottola-njd-2004.