Natarajan v. Dignity Health

CourtCalifornia Court of Appeal
DecidedNovember 20, 2019
DocketC085906
StatusPublished

This text of Natarajan v. Dignity Health (Natarajan v. Dignity Health) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Natarajan v. Dignity Health, (Cal. Ct. App. 2019).

Opinion

Filed 10/22/19; Modified and Certified for Publication 11/20/19 (order attached)

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA THIRD APPELLATE DISTRICT (San Joaquin) ----

SUNDAR NATARAJAN, C085906

Plaintiff and Appellant, (Super. Ct. No. STK-CV- UWM-2016-4821) v.

DIGNITY HEALTH,

Defendant and Respondent.

Plaintiff Sundar Natarajan filed a petition for a writ of administrative mandate to overturn the November 2015 revocation of his staff membership and privileges at St. Joseph’s Medical Center of Stockton (St. Joseph’s), the fictitious name of an entity that defendant Dignity Health owned and operated.1 In September 2017, the trial court denied the petition and entered judgment for defendant.

1 Although not strictly “administrative” in the classic sense, review pursuant to this writ is appropriate for the internal peer review procedures of a hospital. (Kibler v. Northern Inyo County Local Hospital Dist. (2006) 39 Cal.4th 192, 200.)

1 Plaintiff does not contest the sufficiency of the evidence in support of the internal decision; rather, his challenge rests on claims of a denial of procedural due process, and seeks to nullify any preclusive effects the internal decision might have on any subsequent action in court (see, e.g., Knickerbocker v. City of Stockton (1988) 199 Cal.App.3d 235, 243-244), although he does not explain how he would be entitled to this requested relief without a remand for further internal proceedings. He argues the circumstances of the hearing officer’s relationship with defendant gave rise to an unacceptable risk of bias from a pecuniary interest in future employment with defendant, and the internal decision revoking his staff membership and privileges did not apply objective standards.2 We shall affirm the judgment. FACTUAL AND PROCEDURAL BACKGROUND Given the limited nature of the appellate challenge, we omit frequent references in the briefing of both parties to the substantive evidence underlying the decision to revoke plaintiff’s staff privileges and membership. We therefore peel from defendant’s statement of facts a heavy overlay of disparagement of plaintiff’s competence, as well as plaintiff’s self-laudatory brush strokes. We also prune plaintiff’s references to other potential biases in the process leading to the revocation, beyond the claimed pecuniary bias on the part of the hearing officer in favor of defendant that plaintiff argues on appeal. Neither party contests the factual accuracy of the trial court’s statement of decision, so we draw most of our background facts from that source, as well as mutually agreed facts in the briefing. (Meddock v. County of Yolo (2013) 220 Cal.App.4th 170, 175, fn. 3.)

2 We have allowed a number of amici curiae to file briefs. While some of the briefing provides food for thought, ultimately we are not persuaded that we should allow the expansion of the issues beyond those as the parties have framed them. (City of Brentwood v. Campbell (2015) 237 Cal.App.4th 488, 493, fn. 6.)

2 Plaintiff is a hospitalist, which (as the name suggests) is a specialty that oversees in-patient care at hospitals on behalf of primary care physicians. He was formerly the director of the hospitalist program at St. Joseph’s in 2007. He left this position in 2008 to set up a competing hospitalist practice program of his own. In 2013, the medical staff of St. Joseph’s (a self-governing entity)3 initiated an investigation into plaintiff’s procedures. Beginning in 2011, plaintiff had been having persistent problems in completing medical records in a timely fashion, which led to a warning meeting with the staff’s executive committee. He acknowledged the problem and resolved to improve; however, by 2013 the issue was still continuing. The chair of the department of medicine notified plaintiff in August 2013 that a committee would be investigating the timeliness of his record-keeping. In addition, the investigatory committee was concerned with whether plaintiff was responding in a timely fashion when on call, and the length of his patients’ hospitalizations. The results of the investigation were reported to the staff’s executive committee, with a recommendation to revoke plaintiff’s staff membership and privileges. The executive committee adopted the recommendation. Plaintiff appealed this recommendation to the peer review committee. The staff had delegated to the president of St. Joseph’s the authority to appoint a hearing officer for

3 “Hospitals are required by law to have a medical staff association [that] oversees [the] physicians . . . given staff privileges to admit patients and practice medicine in [its] hospital. [This] . . . is a separate legal entity . . . [that] is required to be self-governing and independently responsible from the hospital for its own duties and for policing its member physicians.” (Hongsathavij v. Queen of Angels Etc. Medical Center (1998) 62 Cal.App.4th 1123, 1130, fn. 2 (Hongsathavij).) The medical staff has the primary duty of peer review. (El-Attar v. Hollywood Presbyterian Medical Center (2013) 56 Cal.4th 976, 992 (El-Attar).) The administration cannot act with respect to staff privileges without a recommendation from the peer review panel. (Mileikowsky v. West Hills Hospital & Medical Center (2009) 45 Cal.4th 1259, 1272 (Mileikowsky).)

3 this process,4 who generally oversees the peer review proceedings in a neutral role, makes evidentiary rulings, and participates in the committee’s deliberations as a legal advisor, without a vote in the committee’s decision (a process somewhat akin to the relationship of a trial court and a jury on issues of fact5). (See Bus. & Prof. Code, § 809.2, subd. (b) [“the hearing officer shall [not] gain [any] direct financial benefit from the outcome, shall not act as a prosecuting officer or advocate, and shall not be entitled to vote”].)6 The president selected Robert Singer as the hearing officer. The hearing officer was a semiretired attorney whose income consisted entirely of acting as a hearing officer in peer reviews. In plaintiff’s voir dire of the hearing officer pursuant to the staff bylaws and section 809.2, the hearing officer noted that he acted in this role for Kaiser and Sutter hospitals with almost the same frequency as with Dignity Health hospitals. He had been involved in seven previous peer proceedings at other Dignity Health hospitals and was appointed in two more after his appointment in the present matter, but not otherwise in a peer proceeding at St. Joseph’s.7 The hearing officer could not recall a physician prevailing in any of the matters in which he presided. To avoid the appearance of bias, he had asked that the contract appointing him as hearing officer include a provision barring St. Joseph from appointing him in another peer review

4 This was authorized under the staff bylaws, as permitted by law. (El-Attar, supra, 56 Cal.4th at p. 989.) 5 E.g., Mileikowsky, supra, 45 Cal.4th at p. 1269; Powell v. Bear Valley Community Hospital (2018) 22 Cal.App.5th 263, 274-275 (Powell) (both noting statutory description of review panel as trier of fact). 6 Undesignated statutory references are to the Business and Professions Code.

7 In a deposition of the hearing officer taken in connection with the mandate petition, the hearing officer acknowledged slightly more than half of his income in 2011 and 2014 was derived in peer reviews from defendant-affiliated entities and ranged from 0.9 to 24 percent in other years between 2009 and 2013.

4 matter for three years, though this did not bar him from acting as a hearing officer in peer reviews at other Dignity Health hospitals. At the conclusion of the voir dire process, the hearing officer denied plaintiff’s motion to recuse him, finding that “a factual showing has not been made, and there is no legal justification” for disqualification.

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Related

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