Sullivan v. Baptist Memorial Hosp.

722 So. 2d 675, 1998 WL 753527
CourtMississippi Supreme Court
DecidedOctober 29, 1998
Docket96-CA-01238-SCT
StatusPublished
Cited by2 cases

This text of 722 So. 2d 675 (Sullivan v. Baptist Memorial Hosp.) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sullivan v. Baptist Memorial Hosp., 722 So. 2d 675, 1998 WL 753527 (Mich. 1998).

Opinion

722 So.2d 675 (1998)

B.L. SULLIVAN, M.D., William R. Ford, Jr., M.D., and Mary L.S. Gaines, M.D., Individually and as Partners of Radiology Clinic
v.
BAPTIST MEMORIAL HOSPITAL-GOLDEN TRIANGLE, INC., Baptist Memorial Health Care System, Inc., David C. Hogan, J. Stuart Mitchell, Team Radiology and D. Skip Sallee, M.D.

No. 96-CA-01238-SCT.

Supreme Court of Mississippi.

October 29, 1998.

*676 Paul Davis, Jackson, Robert B. Marshall, Jr., West Point, Attorneys for Appellants.

James L. Jones, Jackson, Thomas L. Segrest, Columbus, Attorneys for Appellees.

Before PITTMAN, P.J., and JAMES L. ROBERTS, Jr. and SMITH, JJ.

SMITH, Justice, for the Court:

¶ 1. Plaintiffs B.L. Sullivan, William R. Ford, Jr., and Mary L.S. Gaines (collectively as "Plaintiff doctors") are board certified radiologists doing business as a partnership, the Radiology Clinic. As individuals and as partners, Plaintiff doctors brought suit in the Circuit Court of Lowndes County for actual and punitive damages as well as injunctive relief against Baptist Memorial Hospital-Golden Triangle, Inc. ("BMH-GT") and Baptist Memorial Health Care Systems, Inc. ("BMHCS"), David C. Hogan, interim administrator of BMH-GT until August of 1993, and J. Stuart Mitchell, administrator of BMH-GT since September of 1993, (collectively as "Hospital Defendants"). Plaintiff doctors also seek actual and punitive damages in addition to declaratory and injunctive relief from TEAM Radiology and D. Skip Sallee, (collectively as "TEAM Defendants").

¶ 2. The relevant facts in this litigation begin in 1969 when Lowndes County opened the hospital originally known as the Golden Triangle Regional Medical Center ("GTRMC"). Prior to March 19, 1993, Lowndes County operated the hospital as a community hospital. The hospital had been built and equipped by public monies, both Federal and County. The hospital was run by the Lowndes County Board of Supervisors and the GTRMC Board of Trustees.

¶ 3. Dr. Sullivan became a member of the hospital's Active Medical Staff and was granted clinical privileges in radiology in 1969. In the early 1980s, Doctors Ford and Gaines became members of the Active Staff with similar clinical privileges. The privileges granted to these Plaintiff doctors were at all times limited to providing specialist services in the hospital's radiology department. The Plaintiff doctors began their partnership, known as the Radiology Clinic, in December of 1986 by executing a partnership agreement.

¶ 4. In August 1992, proposals were solicited from qualified non-profit health-care systems to either purchase or lease the hospital. Pursuant to authorization under Section 41-13-10, et seq., Mississippi Code of 1972, as amended, the Board of Supervisors of Lowndes County, the Board of Trustees of GTRMC, and Baptist Memorial Health Care Development Corporation ("BMHCDC") entered into a Memorandum of Understanding expressing an intent to lease and then to develop the hospital into a regional referral medical center. Around January 28, 1993, BMHCDC formed BMH-GT as a non-profit *677 corporation to carry out the Memorandum of Understanding.

¶ 5. On the same day, the newly formed BMH-GT Board adopted bylaws for the new corporation. These bylaws expressly authorized the hospital to enter into exclusive contracts. The new hospital bylaws also mandated that the hearing and appeal procedures set out in the Medical Staff Bylaws would not apply to the overall objectives of the institution and related policies set by the Board of Directors.

¶ 6. On March 19, 1993, BHM-GT leased the 326 bed non-profit community hospital for an initial term of thirty-five (35) years pursuant to the BMH-GT Hospital Lease Agreement (the "Lease"). The Lease officially changed the name of the hospital and confirmed that the corporate objective was to develop the hospital into a regional medical center. The Lease also stated that BMH-GT alone had the authority to operate the hospital in a manner it determined to be in the community's best interests and to appoint the hospital's governing board.

¶ 7. The Lease required BMH-GT to develop a strategic five year plan to develop the hospital as a regional medical center and to recruit appropriate physician personnel after taking into account the findings of the plan. BMH-GT as lessees also assumed certain contractual obligations of the lessors, Lowndes County, identified in Schedule 19.9. BMHGT assumed pathology and emergency services exclusive contracts, but no other contracts with any other medical staff member were listed.[1]

¶ 8. At the time the Lease was executed, the Plaintiff doctors were providing the hospital with radiological services on an "open staff" system.[2] Plaintiff doctors did not have a radiologist on-site everyday all day, but their presence was available during normal business hours by the fact that the clinic was located only three hundred feet from the hospital. Once BMH-GT took control, they felt this was inadequate coverage and wanted a radiologist on-site while on duty.

¶ 9. However, on March 31, 1993, BMH-GT notified the Plaintiff doctors of their medical staff reappointments.[3] The radiologists had filed their Reappointment Applications in December of 1992.[4] Each application acknowledged that medical staff appointment and clinical privileges are not rights. Each doctor agreed to abide by and be subject to the hospital and medical staff bylaws.

¶ 10. In the development of BMH-GT as a regional medical center, the hospital executed a new exclusive pathology services contract and entered an exclusive contract with a different emergency services provider, neither of which were challenged. Additionally, it was recommended that the hospital have two full-time on-site radiologists.[5]

¶ 11. BMH-GT considered its options to meet the goal of developing the hospital into a regional medical center, including: (1) obtaining adequate coverage from the Plaintiff doctors' Radiology Clinic; (2) entering into an exclusive contract with the Plaintiff doctors; (3) purchasing the Radiology Clinic from the Plaintiff doctors; (4) recruiting other radiologists in an "open staff" system; and (5) entering into an exclusive contract with another radiology group.

¶ 12. During the fall of 1993, TEAM Radiology President D. Skip Salle, M.D., learned that BMH-GT was searching for a radiological services provider. After contacting BMH-GT, TEAM Defendants were advised and believed that the incumbent radiologists *678 had no written contract. Susan Hinson, then Executive Vice President and Chief Operating Officer, ultimately submitted a written proposal. As with all their contracts, TEAM Defendants required an exclusive contract for a two year period. The initial proposal was not accepted, but TEAM Defendants remained in periodic contact with BMH-GT while the hospital weighed its options.

¶ 13. On September 15, 1994, the BMH-GT Board passed a resolution granting the Administrator the authority to enter into an exclusive contract in order to further the hospital's goals. On September 30, 1994, BMH-GT executed an exclusive services agreement with TEAM Defendants, (the "TEAM Contract"). The TEAM contract was the result of over fifteen months of negotiations with TEAM Defendants, Plaintiff doctors, and other radiological service providers.[6] On October 4, 1994, BMH-GT enforced the exclusivity provision of the TEAM contract, which effectively locked the Plaintiff doctors out of the hospital's radiology department.

¶ 14.

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Cite This Page — Counsel Stack

Bluebook (online)
722 So. 2d 675, 1998 WL 753527, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sullivan-v-baptist-memorial-hosp-miss-1998.