Pacific Radiation Oncology, LLC v. Queen's Medical Center

47 F. Supp. 3d 1069, 2014 WL 4682688
CourtDistrict Court, D. Hawaii
DecidedSeptember 18, 2014
DocketCivil No. 12-00064 LEK-KSC
StatusPublished
Cited by9 cases

This text of 47 F. Supp. 3d 1069 (Pacific Radiation Oncology, LLC v. Queen's Medical Center) is published on Counsel Stack Legal Research, covering District Court, D. Hawaii primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pacific Radiation Oncology, LLC v. Queen's Medical Center, 47 F. Supp. 3d 1069, 2014 WL 4682688 (D. Haw. 2014).

Opinion

AMENDED ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFFS’ MOTION FOR TEMPORARY RESTRAINING ORDER OR IN THE ALTERNATIVE FOR PRELIMINARY INJUNCTION

LESLIE E. KOBAYASHI, District Judge.

On September 12, 2014, this Court filed the original version of this order. [Dkt. no. 335.] On September 16, 2014, this Court received a letter from Defendants’ counsel, Paul Alston, Esq. (“9/16/14 Letter”), asking this Court to amend the original version of this Order, [filed 9/12/14 (dkt. no. 334),] because it “creates the impression that [Claire Wong] Black[, Esq.,] was personally responsible for handling the subpoena.” [9/16/14 Letter at 1.] Although this Court cannot agree that the original Order misstates the record about the filing of the confidential document described infra, this Court issues the instant Amended Order as requested.

On July 14, 2014, Plaintiffs/Counterclaim Defendants Pacific Radiation Oncology, LLC, a Hawai’i Limited Liability Corporation, PRO Associates, LLC, a Hawai’i Limited Liability Corporation, John Lederer, M.D., Laeton Pang, M.D., Eva Bieniek, M.D., Vincent Brown, M.D., Paul DeMare, M.D., and Thanh Huynh, M.D. (collectively “Plaintiffs”), filed their Motion for Temporary Restraining Order or in the Alternative for Preliminary Injunction (“Motion”). [Dkt. no. 240.1] Defendants/Counter Claimants Queen’s Medical Center, a Hawai’i Non-Profit Corporation, Queen’s Development Corp., a Hawai’i for Profit Corporation, Noreen D.S.W. Mokuau, William G. Obana, M.D., Arthur A. Ushijima, Mark H. Yamakawa, Paula Yoshioka, Sharlene K. Tsuda, Richard C. Keene, Clinton Yee, Naleen N. Andrade, M.D., Ernest H. Fukeda, Jr., Robb Ohtani, M.D., Neil J. Hannahs, Christine M. Gayagas, Peter K. Hanashiro, Robert K. Nobriga, Eric K. Yeaman, Julia C. Wo, Caroline Ward Oda, Peter Halford, M.D., Barry Weinman, each individually and in his or her capacity as Officer and Trustee of Queen’s Medical Center (collectively “Defendants”), filed their memorandum in opposition on July 25, 2014,2 and Plaintiffs filed their reply on July 30, 2014. [Dkt. nos. 249, 260.3]

This matter came on for hearing on August 4, 2014. The Court issued its sum[1072]*1072mary ruling on August 7, 2014. [Dkt. no. 277.] This Court has also ruled that it would consider the following documents in ruling on the Motion: the Declaration of Claire Wong Black, filed August 15, 2014 (“Black Declaration”); [dkt. no. 284-2;4] Plaintiffs’ response to the Black Declaration, filed August 26, 2014 (“Response to Black Declaration”); [dkt. no. 294;] Plaintiffs’ position statement regarding sanctions, filed August 26, 2014 (“Plaintiffs’ Position Statement”); [dkt. no. 295;] and Defendants’ position statement regarding sanctions, filed August 26, 2014 (“Defendants’ Position Statement”); [dkt. no. 296].

The instant order is this Court’s decision on the Motion, and this order supersedes the August 7, 2014 summary ruling. After careful consideration of the Motion, supporting and opposing documents, and counsel’s arguments at the hearing, Plaintiffs’ Motion is HEREBY GRANTED IN PART AND DENIED IN PART for the reasons set forth below.

BACKGROUND

At all relevant times, Plaintiff Pacific Radiation Oncology, LLC (“PRO”) had five equity members and one employee physician. All six were citizens and residents of Hawai’i and were physicians licensed to practice in Hawai’i. [Amended Complaint for Declaratory and Injunctive Relief and for Damages, filed 2/23/12 (dkt. no. 44) (“Amended Complaint”), at ¶ 3.] According to the Amended Complaint, PRO was the largest radiation oncology group in Hawai’i. [Id. at ¶ 3.] Drs. DeMare, Brown, Huynh, Lederer, Pang, and Bieniek (collectively “the PRO Physicians”) were part of PRO in various capacities. At the time Plaintiffs filed the Amended Complaint, Drs. Lederer and Brown were managers of PRO, Dr. Huynh was an equity partner, and Drs. DeMare, Pang, and Bieniek were members. [Id. at ¶¶4-5.] Prior to the filing of this action, the PRO Physicians provided services to their patients at, inter alia, The Queen’s Medical Center (“Queen’s”), The Cancer Center of Hawai’i (“TCCH”) facility in Ewa Beach, and the TCCH facility in Liliha. Queen’s was the only facility on Oahu that was licensed by the ' Nuclear Regulatory Commission (“NRC”) and had an operating room. When the procedures they performed did not require an operating room, the PRO Physicians tried to accommodate their patients and allow the patients to choose the treatment location. [Id. at ¶ 3.]

In 2011, after an approximately forty-year professional relationship between Queen’s and PRO, Queen’s Board of Trustees made the decision to transition the Queen’s radiation oncology department to a closed facility. In other words, only physicians who are employed by Queen’s would be granted clinical privileges at Queen’s. [Id. at ¶¶ 11, 19.] Plaintiffs’ position is that implementing the closed-facility model, also known as an employment-based model, would effectively terminate the PRO Physicians’ privileges at Queen’s and leave them without access to an NRC-licensed hospital facility to treat their patients.

Plaintiffs allege that, in adopting the closed-facility model, the Queen’s Board of Directors (“the Board”) “did not follow any [1073]*1073of the constitutional, legal, or due process requirements provided for in both the [Queen’s] Bylaws and applicable Hawai’i law to ensure that the Plaintiffs’ substantive and procedural rights to due process were not violated.” [Id. at ¶ 19.] Plaintiffs allege that Defendants’ stated reason for adopting the closed-facility model— “ ‘to standardize and to achieve improved clinical outcomes, enhance patient satisfaction, [and] achieve better quality and continuity of care’ ” — is a pretext, and the real reason behind the policy change is to deny patients the opportunity to be treated at non-Queen’s facilities, thereby preventing Plaintiffs from providing services which compete with Queen’s. [Id. at ¶¶ 25-26.] Plaintiffs also argue that, in enacting a resolution adopting the closed-facility model, Defendants acted “arbitrarily, capriciously, dishonestly, and maliciously with the specific and deliberate intent of harming Plaintiffs and destroying Plaintiffs’ ability to treat patients at facilities competing with [Queen’s].” [Id. at ¶27.] Further, Plaintiffs allege that Defendants acted “intentionally, knowingly, grossly negligently and in conscious and in wanton disregard to rights of the Plaintiffs warranting an award of exemplary and punitive damages.” [Id. at ¶ 29.]

The Amended Complaint alleges the following claims: denial of procedural and substantive due process, as guaranteed by article I of the Hawai’i Constitution and the First and Fourteenth Amendments of the United States Constitution (“Count I”); violations of Queen’s bylaws and governing regulations (“Count II”); intentional and tortious interference with Plaintiffs’ contractual obligations to facilities which compete with Queen’s (“Count III”); intentional and tortious interference with prospective business advantage (“Count IV”); intentional and tortious interference with Plaintiffs’ professional and contractual relationship with their patients (“Count V”); unfair, deceptive, anti-competitive and illegal trade practices in violation of Haw.Rev.Stat.

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Bluebook (online)
47 F. Supp. 3d 1069, 2014 WL 4682688, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pacific-radiation-oncology-llc-v-queens-medical-center-hid-2014.