NAVICENT HEALTH, INC. v. MUFID A. OTHMAN

Court of Appeals of Georgia·Decided October 23, 2024·No. A24A0869·Published

Opinion

FIRST DIVISION

BARNES, P. J.,

GOBEIL and PIPKIN, JJ.

NOTICE: Motions for reconsideration must be physically received in our clerk’s office within ten days of the date of decision to be deemed timely filed.

https://www.gaappeals.us/rules

October 23, 2024

In the Court of Appeals of Georgia A24A0868, A24A0869. OTHMAN v. NAVICENT HEALTH INC.

et al.; and vice versa.

GOBEIL, Judge.

These appeals concern an ongoing dispute between Mufid Othman, M.D., and Navicent Health, Inc. f/k/a Central Georgia Health Systems, Inc. (“Navicent”), and Medical Center of Central Georgia, Inc. (the “Hospital”) (collectively referred to as the “Defendants”). Dr. Othman sued the Defendants for a variety of claims, mostly related to the Defendants’ assignment of patients to certain physician staffing groups at the Hospital’s emergency room. During the course of the litigation, the trial court issued three orders disposing of some of Othman’s claims and allowing others to proceed. Both sides have appealed.

In Case No. A24A0868, Othman asserts that the trial court erred in (1)

dismissing his claim for trespass; (2) concluding that he cannot pursue certain claims on behalf of his physician group even though it assigned rights to him; (3) its application of the economic loss rule to grant partial summary judgment to the Defendants; and (4) granting summary judgment to the Defendants on a claim related to the Hospital executing a contract with a competing physician group in violation of its Bylaws and/or internal Rules and Regulations.

In their cross-appeal in Case No. A24A0869, the Defendants argue that the trial court erred in (1) denying their motion for summary judgment on Othman’s remaining claims concerning the assignment of patients at the emergency room; (2) denying their motion to dismiss Othman’s negligence claim; and (3) denying their motion for summary judgment on Othman’s tangential claims for injunctive relief, attorney fees and expenses, and punitive damages, which must fail if summary judgment is properly granted on his substantive claims.

For the reasons that follow, we affirm in Case No. A24A0868, as the trial court correctly dismissed Othman’s trespass action and granted summary judgment to the Defendants on some of Othman’s other claims, but we reverse in Case No. A24A0869

(the cross-appeal), as the Defendants were entitled to summary judgment in full on the remainder of Othman’s claims.

Background Facts

The record in this case shows that Dr. Othman is a board certified nephrologist and internal medicine doctor who has clinical privileges at the Hospital. The Defendants Navicent and the Hospital are non-profit corporate entities that operate the Hospital. The Hospital has “Medical Staff” consisting of physicians and other healthcare providers who practice there. The Medical Staff is organized under a set of “Bylaws,” and the Hospital operates under its internal “Rules and Regulations.”

The Rules and Regulations set out two types of patients who may present in the Hospital’s Emergency Department (“ED”): “preassigned patients” and “unassigned patients.” Preassigned patients are those who present to the ED with a preexisting relationship with a physician (who is referred to as “an assigned physician”). If the ED doctor determines that the patient already has an assigned physician, then the ED doctor is to contact that assigned physician or his or her “call partner” if the patient requires a consult or admission to the hospital.

Unassigned patients are those who present to the ED without an assigned physician. For unassigned patients, the ED doctor is to “utilize[ ] the department- specific call policy”1 to determine who will assume responsibility for their care. It is up to the ED doctors (who are independent contractors) to determine whether a patient is categorized as preassigned or unassigned, and generally the ED doctors rely on the patient or their support people to answer questions to make that determination.

There are two competing hospitalist groups at the Hospital (groups of physicians who may treat admitted patients) – Magna Care Medical Specialists, LLC (“Magna Care”), of which Othman is a member (and an owner), and Cogent Healthcare of Macon, LLC, d/b/a QuantumHC (“Quantum”).

Magna Care has contractual agreements with many physicians in the Macon area to serve as a “call partner” whenever those physicians are contacted by the ED. The parties refer to these as “call coverage” arrangements/agreements. Essentially,

1 Neither party points this Court to a particular “department-specific call policy” in the record. The Rules and Regulations refer to a list of daily on-call physicians and state that each department should maintain its own specific call policy and notify the ED of its call schedule. According to Othman, these call policies for the ED involve a list of “on-call” physicians who the ED doctor is supposed to rotate through to consult on unassigned patients.

this means that when a patient presents at the ED and names an assigned physician with whom Magna Care has a call coverage agreement, the ED is supposed to contact Magna Care so that a Magna Care physician can consult or admit the patient as a preassigned patient. Or, if one of those call partner physicians is “on call” and assigned an unassigned patient, the ED is supposed to contact Magna Care to consult on that unassigned patient.

In 2016, the Defendants entered an exclusive hospitalist program services agreement with Quantum. This contract provided that Quantum-associated physicians were to be assigned all unassigned patients who presented at the ED from that point onward, thus excluding the Magna Care-associated physicians from treating the unassigned patient population. According to Othman, this change has significantly diminished the number of patients being treated by Magna Care physicians at the Hospital.

Procedural History

In April 2017, Othman filed his original action against the Defendants. His initial claims alleged that the Hospital’s contract with Quantum concerning unassigned patients violated the Bylaws and/or Rules and Regulations adopted by the

Hospital. Othman sought a declaration that the Hospital’s “Rules and Regulations are valid and enforceable as written.” He also sought an injunction to enjoin the Defendants from “failing to follow the Bylaws and Rules and Regulations.”

The primary legal theory underlying Othman’s claims is based on St. Mary’s Hosp. of Athens, Inc. v. Radiology Professional Corp., 205 Ga. App. 121 (421 SE2d 731) (1992) (physical precedent only as to Division 2, which is not at issue in this appeal). Although a hospital generally has broad power to control the administrative, managerial, and operational functions of its facility and staff, hospitals are also bound by their bylaws “concerning staff privileges.” Id. at 127 (3) (c). Under St. Mary’s (discussed further below), a physician is entitled to “assert a cause of action in tort against [a hospital] for failure to follow existing bylaws with regard to termination of his staff privileges.” Id. Othman asserted that St. Mary’s and related cases empowered the court to require the Hospital to follow its existing procedures — essentially asking the court to order the Hospital to return to the previous call rotation system for unassigned patients so that Magna Care physicians would continue to receive unassigned patients.

Free access — add to your briefcase to read the full text and ask questions with AI

NAVICENT HEALTH, INC. v. MUFID A. OTHMAN, (Ga. Ct. App. 2024).

NAVICENT HEALTH, INC. v. MUFID A. OTHMAN (NAVICENT HEALTH, INC. v. MUFID A. OTHMAN) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Cobb County-Kennestone Hospital Authority v. Prince
249 S.E.2d 581 (Supreme Court of Georgia, 1978)
Foster v. Morrison
339 S.E.2d 307 (Court of Appeals of Georgia, 1985)
Morris v. Pugmire Lincoln Mercury, Inc.
641 S.E.2d 222 (Court of Appeals of Georgia, 2007)
Wages v. Amisub of Georgia
508 S.E.2d 783 (Court of Appeals of Georgia, 1998)
Satilla Health Services, Inc. v. Bell
633 S.E.2d 575 (Court of Appeals of Georgia, 2006)
St. Mary's Hospital of Athens, Inc. v. Radiology Professional Corp.
421 S.E.2d 731 (Court of Appeals of Georgia, 1992)
Mulligan v. Brunswick Memorial Hospital Authority
589 S.E.2d 851 (Court of Appeals of Georgia, 2003)
Dunbar v. Gwinnett Hospital Authority
182 S.E.2d 89 (Supreme Court of Georgia, 1971)
Madonna v. Satilla Health Services, Inc.
658 S.E.2d 858 (Court of Appeals of Georgia, 2008)
Andrade v. Grady Memorial Hospital Corp.
707 S.E.2d 118 (Court of Appeals of Georgia, 2011)
CALDWELL Et Al. v. CHURCH
802 S.E.2d 835 (Court of Appeals of Georgia, 2017)
Central of Georgia Railway Co. v. Americus Construction Co.
65 S.E. 855 (Supreme Court of Georgia, 1909)
Clarke County School District v. Madden
110 S.E.2d 47 (Court of Appeals of Georgia, 1959)
Katz v. Hospital Authority
561 S.E.2d 858 (Court of Appeals of Georgia, 2002)
Rowell v. Phoebe Putney Memorial Hospital, Inc.
791 S.E.2d 183 (Court of Appeals of Georgia, 2016)
GENERAL MOTORS, LLC v. BUCHANAN
874 S.E.2d 52 (Supreme Court of Georgia, 2022)