Smith v. Ricks

798 F. Supp. 605, 92 Daily Journal DAR 10230, 1992 U.S. Dist. LEXIS 10488, 1992 WL 166474
CourtDistrict Court, N.D. California
DecidedJuly 15, 1992
DocketC 91-20368 JW
StatusPublished
Cited by7 cases

This text of 798 F. Supp. 605 (Smith v. Ricks) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Ricks, 798 F. Supp. 605, 92 Daily Journal DAR 10230, 1992 U.S. Dist. LEXIS 10488, 1992 WL 166474 (N.D. Cal. 1992).

Opinion

ORDER GRANTING DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT

WARE, District Judge.

Plaintiff John Smith brings this action alleging violations of the Sherman Antitrust Act, 15 U.S.C. §§ 1 and 1px solid var(--green-border)">2, and Section 6 of the Clayton Act, 15 U.S.C. § 17. Plaintiff’s claims arise out of an alleged conspiracy and collusive effort by the Defendants to diminish Plaintiff’s surgical practice by revoking his staff privileges at Good Samaritan Hospital of the Santa Clara Valley.

Plaintiff has named numerous defendants in his complaint, including a number of physicians “involved in the operation of the medical staff activities” at Good Samaritan; Good Samaritan Hospital and Health Dimensions, Inc., which controls Good Samaritan; a majority of the board of trustees of Good Samaritan, which voted to revoke Plaintiff’s staff privileges; and two legal advisors of the above described Defendants. Pl.[’s] Compl. For Damages. Defendants filed this motion for summary judgment, pursuant to Fed.R.Civ.P. 56. Defendants assert that under the Health Care Quality Improvement Act of 1986, 42 U.S.C. § 11101 et seq., they are immune from federal antitrust liability.

*607 I. BACKGROUND

Plaintiff first applied for staff privileges at The Good Samaritan Hospital of the Santa Clara Valley in November, 1981. Plaintiff became an Associate member of the medical staff in February, 1982. In March, 1983, Plaintiffs status was upgraded from Associate to Active.

Pursuant to California regulations, staff privileges must be reviewed biennially. In August, 1984, Plaintiff applied for renewal of his privileges, and in January, 1985, he was reappointed to the Hospital’s medical staff. In the reapplication form, Plaintiff stated that he was appealing a decision regarding his status at another hospital, O’Connor Hospital (“O’Connor”).

On January 6, 1986, the California Board of Medical Quality Assurance (“BMQA”) informed Good Samaritan Hospital that Plaintiff’s staff privileges at O’Connor Hospital had been revoked. The loss of privileges was based on Plaintiff’s medical treatment of five patients at O’Connor Hospital. When Defendant Ullrich, then Chairman of the Department of Medicine at Good Samaritan, inquired into the details of the O’Connor decision, Plaintiff stated that the patient care claims were unfounded, were reviewed by a biased committee, and that his termination was based on a “failure to advance.” Good Samaritan asked O’Connor to provide medical records for the five O’Connor patient cases which prompted Plaintiff’s loss of privileges at O’Connor. Plaintiff objected to release of the documents and to an investigation by the Good Samaritan staff. Ultimately Plaintiff consented to the release of the files, and the files were received by Good Samaritan in late December, 1987.

In September, 1986, Plaintiff was once again required to submit to a biennial review of his staff privileges at Good Samaritan, as required by State regulation. The 1986 reapplication, which occurred during the investigation of Plaintiff’s termination from O’Connor Hospital, was ultimately denied by Good Samaritan Hospital.

In early 1988, Defendants Ricks, Murphy, Siegel and Ullrich, who are cardiologists at Good Samaritan, reviewed the O’Connor case files and concluded that Plaintiff’s treatment of those patients had been below acceptable standards of care. All five of these cases had involved the cardiac catheterization of patients.

On April 14, 1988, Good Samaritan’s Cardiology Executive Committee met with Plaintiff and discussed the five O’Connor cases. Unbeknownst to the Committee, six days prior to this meeting, a patient of Plaintiff’s died during a cardiac catheteri-zation procedure. On June 9, 1988, the Committee reviewed the case file of this latest patient death, and on June 21, 1988, discussed the matter with Plaintiff. The Committee ultimately concluded that Plaintiff’s privileges should be revoked. Good Samaritan’s Department of Medicine Executive Committee concurred.

On July 14, 1988, the Hospital’s Medical Staff Executive Committee (“MEC”) received the above recommendations. Plaintiff met with the MEC on August 19, 1988. The MEC interviewed Plaintiff regarding each incident which preceded the recommendation to revoke his privileges. On August 29,1988, the MEC notified Plaintiff it had adopted the recommendation to revoke Plaintiff’s staff privileges. The MEC did indicate, however, that Plaintiff could reapply for staff privileges provided he agree to a number of conditions, including training and consultation requirements, as well as a reduced work load. The MEC and Plaintiff were unable to reach a mutual agreement on acceptable conditions for Plaintiff’s reapplication. Accordingly, the MEC put forth a recommendation to revoke Plaintiff’s staff privileges “based on [Plaintiff’s] inability to interpret, organize and analyze medical information and use it as a basis for making medical judgments.” Def.[’s] Supplemental Statement of Undisputed Facts RE Def.[’s] Mot. for Summ. J.

Thereafter, Plaintiff sought review of the MEC’s decision by the Hospital’s Judicial Review Committee (“JRC”). Plaintiff received notice of the JRC hearing, which included nine individually held sessions. Each session was transcribed by a court reporter, resulting in over 1,500 pages of transcription. The hearings were held be *608 fore a hearing officer and a panel of physicians who were not in economic competition with Plaintiff. The sessions were held between April 17, 1989 and August 29, 1989. Plaintiff was represented by counsel at the sessions, and was permitted to call, examine and cross-examine witnesses. A total of six witnesses were called during the course of the hearings.

Plaintiff introduced 22 exhibits into evidence at the JRC hearing, and was presented with all evidence introduced by the medical staff. Plaintiff claims that he was denied the opportunity to have a comparison survey of Defendant “physician-competitors” medical services rendered at Good Samaritan. Pl.[’s] Compl. for Damages. Plaintiff argues the survey would have shown that his own work was as good, if not superior to, the work of the doctors reviewing Plaintiffs cases. Plaintiff claims the survey would show that the decision to revoke his privileges was both arbitrary and the product of an effort to eliminate Plaintiff as an economic competitor in the field of cardiac care.

On October 2, 1989, the JRC decided that the charges against Plaintiff were supported by facts and evidence. The JRC confirmed that Plaintiffs treatment of the five O’Connor patients was below an acceptable standard of care; that the records of Plaintiffs patients revealed a lack of logic, organization and judgment; and that the patient death in April, 1988 resulted from similar treatment as that exhibited by Plaintiff in the O’Connor cases.

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Bluebook (online)
798 F. Supp. 605, 92 Daily Journal DAR 10230, 1992 U.S. Dist. LEXIS 10488, 1992 WL 166474, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-ricks-cand-1992.