Peyton v. JOHNSON CITY MEDICAL CENTER

101 S.W.3d 76, 2002 Tenn. App. LEXIS 770
CourtCourt of Appeals of Tennessee
DecidedOctober 29, 2002
StatusPublished
Cited by7 cases

This text of 101 S.W.3d 76 (Peyton v. JOHNSON CITY MEDICAL CENTER) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peyton v. JOHNSON CITY MEDICAL CENTER, 101 S.W.3d 76, 2002 Tenn. App. LEXIS 770 (Tenn. Ct. App. 2002).

Opinion

OPINION

D. MICHAEL SWINEY, J.

In April of 1994, Johnson City Medical Center (the “Hospital”) summarily suspended the hospital privileges of Dr. Richard R. Peyton (“Dr.Peyton”). Dr. Peyton was told the reason for this action and about his right to request a hearing. Dr. Peyton requested a hearing, which took place over three days and in which 18 witnesses testified. After the hearing, the decision to revoke Dr. Peyton’s hospital privileges was upheld by the hearing panel. Dr. Peyton appealed this decision, all to no avail, through the Hospital’s internal appeal procedures. Dr. Peyton then filed suit claiming his hospital privileges were improperly revoked and sought injunctive relief and monetary damages in the amount of ten million dollars. The Trial Court granted the Hospital’s motion for partial summary judgment pursuant to the federal Health Care Quality Improvement Act of 1986, 42 U.S.G. § 11101, et seq. This decision effectively prevented Dr. Peyton from receiving any monetary damages. Dr. Peyton appeals the granting of partial summary judgment. We affirm.

This lawsuit arises out of the Hospital’s permanent revocation of Dr. Peyton’s privileges to practice medicine at the Hospital. The issues on appeal surround the Trial Court’s granting of partial summary judgment to the Hospital after concluding the Hospital was immune from monetary damages pursuant to the federal Health Care Quality Improvement Act of 1986 (“Act”), 42 U.S.C. § 11101, et seq. 1 This Act was passed in an attempt to address several Congressional findings which were:

(1) The increasing occurrence of medical malpractice and the need to improve the quality of medical care have become nationwide problems that warrant greater efforts than those that can be undertaken by any individual State.
(2) There is a national need to restrict the ability of incompetent physicians to move from State to State without disclosure or discovery of the physician’s previous damaging or incompetent performance.
(3) This nationwide problem can be remedied through effective professional peer review.
(4) The threat of private money damage liability under Federal laws, including treble damage liability under Federal antitrust law, unreasonably discourages *78 physicians from participating in effective professional peer review.
(5) There is an overriding national need to provide incentive and protection for physicians engaging in effective professional peer review.

42 U.S.C. § 11101.

The Act creates a limitation on monetary damages for professional review actions. As a general rule, if a “professional review action” of a “professional review body” meets the standards specified in 42 U.S.C. § 11112(a), then there shall be no monetary liability “under any law of the United States or of any State (or political subdivision thereof) with respect to the” professional review action. 2 42 U.S.C. § 11111(a)(1). This immunity from monetary liability extends to: (a) the professional review body; (b) any person acting as a member or staff to the body; (c) any person under a contract or other formal agreement with the body; and (d) any person who participates with or assists the body with respect to the action. 42 U.S.C. § lllll(a)(l)(A)-(D). To be immune from monetary liability, a professional review action must be taken:

(1) in the reasonable belief that the action was in the furtherance of quality health care;
(2) after a reasonable effort to obtain the facts of the matter;
(8) after adequate notice and hearing procedures are afforded to the physician involved or after such other procedures as are fair to the physician under the circumstances; and
(4) in the reasonable belief that the action was warranted by the facts known after such reasonable effort to obtain facts and after meeting the requirement of paragraph (3)....

42 U.S.C. § 11112(a). The statute further provides that a professional review action shall be “presumed” to have met the preceding standards necessary for the protection set out in 42 U.S.C. § 11111(a), unless this presumption is rebutted by a preponderance of the evidence. Id.

Dr. Peyton first learned the Hospital had suspended his medical privileges on April 29, 1994, when he received a letter informing him the Hospital’s Executive Committee had moved to suspend his medical privileges immediately for disregarding radiation safety procedures and policies, providing substandard quality of care, and engaging in disruptive behavior. Dr. Peyton was informed that before this action became final, he was entitled to request a hearing and the procedure for doing so was detailed in the letter. Dr. Peyton also was notified of his rights at such a hearing, including, inter alia, his right to counsel, to have a record made of the proceedings, to examine and cross-examine witnesses, and to present relevant evidence regardless of its admissibility in a court of law, etc.

Dr. Peyton requested a hearing, which took place on June 15th through 17th of 1994. The members of the Fair Hearing Panel were Dr. Boyce Berry, Dr. Brent Coyle, Dr. Don Clemons, Dr. John Wilson 3 , Dr. Ricky Mohon, Mr. Joe Johns, Mr. Don Jeanes, and Ms. Marion McKinney. The *79 Hospital and Dr. Peyton each had two attorneys present.

The first witness was Sandra Elliott (“Elliott”), the Hospital’s Director of Quality Improvement and Resource Management. Elliott testified to five incidents of noncompliance with State regulations by Dr. Peyton which were reported to the State by the Hospital or the Hospital’s Cancer Treatment Center. Elliott testified Dr. Peyton in one of these incidents was the chief treating physician but the patient received follow-up care from another physician. In the other four cases, Dr. Peyton was the chief treating physician. Elliott then testified to the various incidents which had been reported to the State. The first incident involved a patient of Dr. Peyton with kidney cancer. Dr. Peyton administered 80 radiation treatments over a six week period to the patient’s left kidney. The cancer, however, involved the right kidney. The next two cases concerned patients who received brachytherapy treatment, which is the introduction of a radioactive source into the body to emanate radiation close to a tumor. In these two cases, in which Dr.

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Bluebook (online)
101 S.W.3d 76, 2002 Tenn. App. LEXIS 770, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peyton-v-johnson-city-medical-center-tennctapp-2002.