Shean Satgunam v. Michigan State Univ.

556 F. App'x 456
CourtCourt of Appeals for the Sixth Circuit
DecidedFebruary 25, 2014
Docket13-1535
StatusUnpublished
Cited by7 cases

This text of 556 F. App'x 456 (Shean Satgunam v. Michigan State Univ.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shean Satgunam v. Michigan State Univ., 556 F. App'x 456 (6th Cir. 2014).

Opinion

SUHRHEINRICH, Circuit Judge.

This is a § 1983 case concerning procedures used to remove a physician’s clinical privileges and subsequent reporting to the *458 National Practitioner Data Bank (“Data Bank”). Plaintiff-Appellant Dr. Shean Satgunam (“Satgunam”), a surgeon formerly associated with the Michigan State University HealthTeam (“HealthTeam”), alleges that Defendant-Appellees, Dr. Marc Basson (“Basson”), and other members of the MSU HealthTeam Governing Board (“Governing Board”) (collectively “Defendants”) violated his due process rights through the hearing process used to terminate his staff privileges and erroneously reported his termination to the Data Bank. The district court granted a preliminary injunction mandating that the Governing Board conduct an appeal hearing with appropriate due process protections, but not requiring removal of the Data Bank report. The district court denied Satgunam’s motion to modify the preliminary injunction. We AFFIRM.

I. Background

Satgunam is a board-certified general surgeon who held a three-year assistant professorship with MSU’s College of Human Medicine. Marc Basson, M.D., is the Chairperson of MSU’s Department of Surgery. Richard Ward is the Chief Executive Officer of HealthTeam. The remaining defendants are members of the HealthTeam Governing Board.

Satgunam began his tenure at MSU in July 2009. Under his employment contract, most of his time was to be spent in surgery practice, with the rest split between teaching, research, and administrative duties. With his appointment, Satgu-nam became a member of HealthTeam, the entity that coordinates MSU professors and employees who provide health care in area hospitals. MSU does not own or operate a hospital. Instead, its faculty and residents provide care through an affiliation with Sparrow Hospital (“Sparrow”), a private hospital in Lansing, Michigan. 1

HealthTeam is governed by a set of bylaws that enable HealthTeam’s Governing Board to establish strategies, policies, rules, and procedures governing the operations of HealthTeam. HealthTeam committees have established policies and procedures for peer review of members. Where a peer-review committee recommends taking disciplinary action against a member, it submits its recommendation to the HealthTeam Credentials and Privileges Committee. The Credentials and Privileges Committee has its own procedures for reviewing a member’s record. Its policies provide for an appeal of any action affecting a member’s clinical privileges, though the details of that proceeding are unspecified.

Satgunam’s time at MSU was troublesome. Basson describes in his affidavit a series of events that caused him concern about Satgunam’s abilities. First, in October 2010, one of Satgunam’s patients died allegedly due to complications from laparo-scopic bypass surgery. The patient’s estate brought a medical malpractice suit, and MSU settled the claim at a cost of $650,000. HealthTeam peer-review criticized Satgunam’s surgical technique. Bas-son met with Satgunam several times during Fall 2010, persuading Satgunam to stop performing laparoscopic surgeries without formally sanctioning Satgunam. However, despite Basson’s request, Satgu-nam refused to undergo any training or mentoring program to improve his skills. Then, in September 2011, Satgunam performed another laparoscopic surgery. The patient died, again allegedly due to surgi *459 cal error. Satgunam agreed not to perform laparoscopic procedures during the peer-review process on the condition that HealthTeam would not report the adverse cases to the Data Bank. Finally, in February 2012, another MSU physician sent Basson a letter complaining that Satgunam refused to take a patient referred to him for an appendectomy while Satgunam was on call. Satgunam claimed the patient was the responsibility of a doctor previously on call.

On February 22, 2012, the HealthTeam Surgery Department’s Peer Review Committee completed a review of Satgunam’s performance and issued a report. The next day, Basson met with Satgunam to discuss the review, which found significant problems with Satgunam’s surgical record and mentioned the patient-transfer dispute. Basson told Satgunam that he was considering a suspension of his clinical privileges.

The district court notes that “[t]he exact details of what happened next are unclear.” Satgunam claims that he received a letter from Basson the same day purporting to suspend his privileges and a follow-up letter the next day setting forth reasons for the suspension. In the followup letter, Basson noted that he and Satgu-nam initially agreed to reassign Satgunam to teaching and research for the remainder of his contract. Basson admitted “confusion” over his power to summarily suspend privileges and to recommend suspension in a non-emergency situation. Basson claims that he did not suspend Satgunam on February 23, 2012, the day they met, but waited to do so until February 24, 2012, when he sent the follow-up letter.

The matter was forwarded to the HealthTeam Credentials and Privileges Committee, which treated it as a “summary suspension” of clinical privileges. Credentials and Privileges Committee chair Dr. David Walsworth (“Walsworth”) notified Satgunam that Basson’s recommendation to suspend his privileges had been approved. Walsworth informed Sat-gunam that Satgunam could appeal the committee’s decision, stating that “[arrangements are in the process to afford you this right of appeal. You will be notified of the date, time, and location for this meeting.” Later, Satgunam obtained counsel, Jeffrey Herron (“Herron”), who asked the MSU Office of General Counsel about the procedures that governed the appeals process. Lynn Kriser (“Kriser”), HealthTeam’s counsel, responded as follows:

The hearing on Thursday is not an evi-dentiary hearing, but is a time for Dr. Satgunam to make a statement to the MSU HealthTeam Governing Board and provide any information he wishes them to consider. He can bring any documentary information he wishes such as reports or supporting opinions. There are not witnesses, opportunities to cross examine, etc. This will be true for the MSU HealthTeam as well. I believe there will only be the chair of the Department of Surgery making a statement about why there is a recommendation to suspend Dr. Satgunam’s privileges.

Herron sought further clarification, claiming that HealthTeam’s counsel failed to answer some of his questions. Kriser responded the day before the appeal, elaborating on the procedures:

Tomorrow Dr. Satgunam will have up to 30 minutes to present any information he wishes the board to consider in support of having the suspension removed. He may bring any documents he wishes, including case evaluations and statements from peers. The board may ask Dr. Satgunam questions. You may be present, but you cannot speak for Dr. *460 Satgunam. The 30 minute time limit is firm. Dr. Satgunam will only be in the room during his presentation to the board.

The appeal hearing will not be recorded.

On March 8, 2012, the morning of the appeal, Satgunam filed the underlying action in this case in the United States District Court for the Western District of Michigan. He sought an ex parte

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Bluebook (online)
556 F. App'x 456, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shean-satgunam-v-michigan-state-univ-ca6-2014.