Philips v. Pitt County Memorial Hospital Inc.

731 S.E.2d 462, 222 N.C. App. 511, 2012 WL 3568530, 2012 N.C. App. LEXIS 1014
CourtCourt of Appeals of North Carolina
DecidedAugust 21, 2012
DocketNo. COA11-1482
StatusPublished
Cited by13 cases

This text of 731 S.E.2d 462 (Philips v. Pitt County Memorial Hospital Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Philips v. Pitt County Memorial Hospital Inc., 731 S.E.2d 462, 222 N.C. App. 511, 2012 WL 3568530, 2012 N.C. App. LEXIS 1014 (N.C. Ct. App. 2012).

Opinion

STEPHENS, Judge.

Procedural History and Factual Background

This matter arises from the suspension and then revocation of the medical staff privileges of Plaintiff Sherif A. Philips, M.D., by Defendant Pitt County Memorial Hospital (“the hospital”). During 2003 and 2004, the Risk Management Department of the hospital received complaints about Plaintiff, a nephrologist with active medical staff privileges at the hospital. The complaints involved, inter alia, failing to examine patients and making false entries on medical records, and occurred at about the same time the hospital became aware of a consent order Plaintiff entered into with the North Carolina Medical Board (“NCMB”), in which Plaintiff accepted a reprimand for failing to provide assistance to a patient in cardiopulmonary arrest.1 As a result of the consent order and the complaints, on 26 August 2004, Defendant Ralph Whatley, M.D., then chief of the [514]*514internal medicine service (which included nephrology), requested an investigation prior to corrective action pursuant to Article VII, § 2 of the hospital’s Medical Staff Bylaws, Rules, and Regulations (“the bylaws”).2

Charles Barrier, M.D., then chief of staff at the hospital, notified Plaintiff in writing that the request for investigation would be presented to the hospital’s medical executive committee (“the executive committee”) on 20 September 2004, that he had the right to be present, and of his obligations under the bylaws. The executive committee determined that the allegations in the request for investigation, if confirmed, could warrant action regarding Plaintiff’s privileges, and as a result, it directed Whatley to form an ad hoc committee (“the first ad hoc committee”) to investigate four issues further: (1) documentation of Plaintiff’s physical examinations of four patients, (2) billing related to those four patients, (3) the consent order entered into with the NCMB, and (4) termination of Plaintiff’s privileges at another hospital. Whatley appointed the first ad hoc committee, which held multiple investigatory hearings. The first ad hoc committee presented its final written report to the executive committee on 15 November 2004. Plaintiff was again given notice of his right to attend the presentation, make a statement, ask questions, and present evidence. Plaintiff met with the executive committee on 15 November 2004, after which the executive committee issued a report recommending a letter of reprimand and a six-month suspension of Plaintiff’s privileges, the latter to be “suspended.”

On 17 November 2004, the executive committee notified Plaintiff that it had taken action on the recommendation of the first ad hoc committee, and advised Plaintiff of his appeal rights. When Plaintiff appealed pursuant to the bylaws, a fair hearing committee was appointed, and multiple hearings were held over the next several months. Whatley and Defendant Paul Bolin, M.D., another physician with medical staff privileges at the hospital, provided testimony during the hearings. The hearing committee issued a written report recommending a corrective action (but not a suspension of Plaintiff’s [515]*515privileges) which was presented to the executive committee on 4 April 2005. The executive committee took action on the same date and accepted the fair hearing panel’s recommendation.

Plaintiff elected not to appeal the executive committee’s decision to the Board of Trustees, which under the bylaws, retained the power to make final decisions in any corrective action proceedings. However, because it declined to accept the recommendation of the executive committee, as directed by the bylaws, the Board of Trustees then referred the matter to the chief of staff, chief of staff— elect, secretary, and chairman of the Credentials Committee (“the committee of four”) for a recommendation.3 The committee of four issued a written report and recommendation to the Board of Trustees on 21 June 2005. On the same date, the Board of Trustees made its final decision. At that time, Plaintiff’s medical staff privileges were up for a regular biennial renewal. The Board of Trustees elected to renew Plaintiff’s privileges, subject to certain conditions, including a 90-day suspension of his privileges, 31 days of which would be active and the remaining 59 days suspended, and requirements that Plaintiff make precise chart notes, have his practice patterns reviewed, and adhere to a call schedule.4 Plaintiff accepted the terms of the conditional renewal of his medical staff privileges. As required by state and federal law, the hospital reported Plaintiff’s suspension to the NCMB and the National Practitioners’ Data Bank (“NPDB”).

Subsequently, the hospital learned that Plaintiff had failed to adhere to a call schedule, one of the conditions of the renewal of his privileges. Specifically, a private investigator hired by the hospital discovered that Plaintiff was out of the county several times when he was scheduled to be on call for the hospital, and that on at least three occasions, the physician purportedly providing call coverage for Plaintiff was also outside the county. Based on this failure to comply with the conditions of renewal, another request for investigation was submitted. In addition, as provided in the bylaws,5 the hospital’s chief [516]*516of staff determined that a summary suspension of Plaintiffs privileges was necessary to protect patient safety.

A second ad hoc committee was appointed to investigate Plaintiffs noncompliance with the conditions of renewal. The second ad hoc committee submitted a written report and recommendation to the executive committee, which took action on the recommendation to invoke the remaining 59 days of Plaintiffs previous suspension. Plaintiff again appealed, leading to the appointment of a second hearing committee, which again held multiple hearings on the matter. The second hearing committee reported to the executive committee which took action on 19 December 2006. Plaintiff appealed to the Board of Trustees, which upheld the recommendation of the executive committee and permanently revoked Plaintiffs medical staff privileges.

Plaintiff has previously filed two lawsuits against Defendants6 in the United States District Court for the Eastern District of North Carolina, each of which was dismissed pursuant to Rule 12(b)(6) and for lack of subject matter jurisdiction. See Philips v. Pitt Cnty. Mem’l Hosp., 572 F.3d 176 (4th Cir. 2009) (affirming the dismissals). The state action here was filed on 12 August 2009. The trial court dismissed Plaintiffs claims for fraud and tortious interference with contract pursuant to Rule 12(b)(6) on 31 March 2010, and granted Defendants’ motion for summary judgment on Plaintiff’s remaining claims for breach of contract, defamation, injunctive relief, and punitive damages on 17 May 2011. Plaintiff appeals.

Discussion

Plaintiff brings forward two arguments on appeal: that the trial court erred in (1) dismissing his claims for fraud and tortious interference with contract pursuant to Rule 12(b)(6), and (2) granting summary judgment for Defendants on Plaintiffs claims for breach of contract, defamation, punitive damages, and injunctive relief because there existed disputed issues of material fact. As discussed below, we affirm.

[517]*517 Standards of Review

Pursuant to Rule 12(b)(6),

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Bluebook (online)
731 S.E.2d 462, 222 N.C. App. 511, 2012 WL 3568530, 2012 N.C. App. LEXIS 1014, Counsel Stack Legal Research, https://law.counselstack.com/opinion/philips-v-pitt-county-memorial-hospital-inc-ncctapp-2012.