Scally v. Texas State Board of Medical Examiners

351 S.W.3d 434, 2011 WL 3371538
CourtCourt of Appeals of Texas
DecidedOctober 18, 2011
Docket03-09-00667-CV
StatusPublished
Cited by63 cases

This text of 351 S.W.3d 434 (Scally v. Texas State Board of Medical Examiners) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scally v. Texas State Board of Medical Examiners, 351 S.W.3d 434, 2011 WL 3371538 (Tex. Ct. App. 2011).

Opinion

OPINION

DIANE M. HENSON, Justice.

Michael C. Scally, M.D., appeals the district court’s judgment affirming the final order of the Texas State Board of Medical Examiners (the Board), which revoked his license to practice medicine in Texas. The Board ordered the license revocation after determining that Scally violated the Texas Medical Practice Act, Tex. Occ.Code Ann. §§ 151.001-167.202 (West 2004 & Supp. 2010), by prescribing anabolic steroids to patients without a valid medical purpose and by failing to keep adequate medical records for some of those patients. In six issues, Scally contends that the district court erred by affirming the Board’s final order. We will affirm the district court’s judgment because we find no error in the *439 Board’s final order and conclude that it was supported by substantial evidence.

BACKGROUND

The Board’s staff sought to revoke Scally’s medical license by filing a complaint against Scally with the Board and at the State Office of Administrative Hearings in August 2002. 1 The complaint alleged in essence that Scally had prescribed anabolic steroids to healthy patients for the improper purpose of bodybuilding. 2 Throughout the proceedings, Scally admitted to prescribing anabolic steroids, but maintained that he only prescribed the drugs to improve the patients’ overall health and to treat medical conditions like steroid-induced hypogonadism or associated symptoms, not for the purpose of bodybuilding. 3

After an unsuccessful mediated settlement conference, the case went to an administrative law judge (ALJ) for a contested-case hearing. The Board amended its complaint in July 2003, alleging that Scally violated the Medical Practice Act by improperly prescribing anabolic steroids to nine patients and failing to keep adequate medical records and to conduct appropriate testing for those patients. See id. §§ 164.001; .051(a)(1), (3), (6); .052(a)(5); .053(a)(1), (5), (6). At the contested-case hearing, Scally took the position that prescribing anabolic steroids along with other medications to stimulate the hypothalamic-pituitary-testicular axis (HPTA) is the proper standard of care for reducing the severity and duration of steroid-induced hypogonadism. 4 He also asserted that he performed the proper diagnostic tests before prescribing anabolic steroids and that he maintained adequate medical records for these patients.

The ALJ conducted an eleven-day evi-dentiary hearing, during which the Board offered the expert testimony of two board-certified endocrinologists, Dr. Harold Wer-ner and Dr. Jeffrey Jackson. Scally offered his own testimony along with expert testimony from Dr. Mauro DiPasquale, a doctor licensed in Ontario, Canada, who has practiced sports medicine for thirty years. 5 In addition, Scally offered testi- *440 raony from Greg Seal, a patient treated by Seally beginning in 2000 (after most of the patients cited in the Board’s complaint), and Andrew Hodge, Scally’s assistant as of January 2000. The parties also submitted post-hearing briefing to the ALJ.

After the record was closed, the ALJ issued a proposal for decision that included 271 findings of fact and 25 conclusions of law. For each of the nine patients at issue, the ALJ analyzed the Board’s factual allegations and whether Seally had violated the Medical Practice Act or the Board’s rules by (1) prescribing anabolic steroids to the patients outside the standard of care, (2) failing to keep adequate medical records for them, and (3) failing to conduct appropriate tests to rule out diagnoses other than hypogonadism. The ALJ concluded that Seally (1) violated the standard of care by prescribing anabolic steroids to patients M.W., J.S., J.M., T.W., J.B., J.Bi., S.L., and S.D. without a valid medical purpose and for the purpose of bodybuilding; (2) failed to practice medicine in an acceptable professional manner consistent with the public health and welfare; (3) committed unprofessional or dishonorable acts that were likely to deceive or defraud the public; and (4) prescribed controlled substances to these patients in a manner inconsistent with public health and welfare. 6 See id. §§ 164.051(a)(1), .052(a)(5), .053(a)(1), (5); Tex. Health & Safety Code Ann. § 481.071 (West 2010). The ALJ concluded that Scally’s conduct was intentional based on his pattern of marketing to people interested in bodybuilding and providing them with anabolic steroids. The ALJ also concluded that Seally failed to maintain adequate medical records for T.C., M.W., J.S., T.W., J.B., and J.Bi. After considering both the aggravating and mitigating factors provided as guidelines in the Board’s rules, the ALJ recommended that Scally’s license be revoked and that the Board assess an administrative penalty against him in the amount of $190,000, as well as transcription costs of $12,809.50. 7 The Board reviewed the ALJ’s proposal for decision and adopted it in full. Seally sought judicial review of the Board’s order in district court. After a hearing on the merits, the district court affirmed the Board’s final order. This appeal followed.

STANDARD OF REVIEW

The substantial-evidence standard of the Texas Administrative Procedure Act (APA) governs our review of the Board’s final order. See Tex. Gov’t Code Ann. § 2001.174 (West 2008). The APA authorizes reversal or remand of an agency’s decision that prejudices the appellant’s substantial rights because the administrative findings, inferences, conclusions, or decisions (1) violate a constitutional or statutory provision, (2) exceed the agency’s statutory authority, (3) were made through unlawful procedure, (4) are affected by other error of law, or (5) are arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion. Id. § 2001.174(2)(A)-(D), (F).

The APA also authorizes a reviewing court to test an agency’s find *441 ings, inferences, conclusions, and decisions to determine whether they are reasonably supported by substantial evidence considering the reliable and probative evidence in the record as a whole. Graff Chevrolet Co. v. Texas Motor Vehicle Bd., 60 S.W.3d 154, 159 (Tex.App.-Austin 2001, pet. denied); see Tex. Gov’t Code Ann. § 2001.174(2)(E). Under this deferential standard, we presume that the Board’s order is supported by substantial evidence, and Scally bears the burden of proving otherwise. Texas Health Facilities Comm’n v. Charter Medical-Dallas, Inc., 665 S.W.2d 446, 453 (Tex.1984). The burden is a heavy one — even a showing that the evidence preponderates against the agency’s decision will not be enough to overcome it, if there is some reasonable basis in the record for the action taken by the agency. Id. at 452.

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Bluebook (online)
351 S.W.3d 434, 2011 WL 3371538, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scally-v-texas-state-board-of-medical-examiners-texapp-2011.