Suzan McGary v. Williamsport Regional Medical

Court of Appeals for the Third Circuit·Decided June 6, 2019·No. 18-2212·Unpublished

Opinion

NOT PRECEDENTIAL

UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT

No. 18-2212

SUZAN MCGARY, M.D.,

Appellant

v.

WILLIAMSPORT REGIONAL MEDICAL CENTER;

SUSQUEHANNA HEALTH SYSTEM; GEORGE MANCHESTER, M.D.;

SCOTT CROLL, M.D.; JOHN BURKS, M.D.; MARK A. OSEVALA, D.O.

On Appeal from the United States District Court for the Middle District of Pennsylvania (D.C. No. 4-12-cv-1742)

District Judge: Hon. Matthew W. Brann

Submitted Under Third Circuit LAR 34.1(a)

January 22, 2019

Before: JORDAN, KRAUSE, and ROTH, Circuit Judges.

(Filed: June 6, 2019)

OPINION

This disposition is not an opinion of the full court and, pursuant to I.O.P.

5.7, does not constitute binding precedent.

JORDAN, Circuit Judge.

Susan McGary appeals the grant of summary judgment for Susquehanna Health System (“Susquehanna Health”), its wholly owned subsidiary Williamsport Regional Medical Center (the “Medical Center” or the “hospital”), and related employees Dr. George Manchester, Dr. Scott Croll, Dr. John Burks,1 and Dr. Mark Osevala2 (collectively, the “Defendants”) on her antitrust and related state law claims. We will affirm. I. BACKGROUND Dr. McGary is a board-certified cardiothoracic (“CT”) surgeon. For nearly a decade, she practiced CT surgery at the Medical Center. She left in 2007 but, four years later, decided she wanted to return and sought employment there again. The Medical Center, however, did not offer her a position because, it explained, it did not have enough work to support another CT surgeon in addition to Dr. Osevala, the sole CT surgeon on staff.

Dr. McGary decided to open her own private practice instead, but she still needed access to the Medical Center’s facilities to perform surgery. As an “open staff” facility, the hospital allows private practitioners to apply for staff privileges. (App. at 1182-83.) Dr. McGary did so in January 2012. At the time she applied, the Medical Center had

1

The spelling of Dr. Burks’s last name is inconsistent in the record, but we use “Burks” to be consistent with the parties’ filings.

2

Drs. Croll, Burks, and Osevala are employed by non-party Susquehanna Physicians Services, a wholly owned subsidiary of Susquehanna Health. Dr. Manchester is employed by Susquehanna Health.

credentialing criteria that required applicants for CT surgery privileges to have performed at least 100 heart surgeries and 100 lung surgeries within the previous year (the “100/100 criteria”). Those credentialing criteria were actually established while Dr. McGary was one of two “leaders” of the hospital’s CT surgery program.3 (App. at 849 ¶¶ 19-20.) When applying for staff privileges in 2012, however, Dr. McGary did not have the recent experience required by the 100/100 criteria.

Susquehanna Health’s Medical Bylaws set forth procedures for processing applications, including escalating levels of review.4 Dr. Manchester, the hospital’s Chief

3 While Dr. McGary contends that she played no role in their adoption, the Defendants assert that she was involved in setting the criteria.

4 The Medical Staff Bylaws provide:

The completed application form shall be submitted to the Medical Director’s Office along with any application fee. Upon receipt of the application, the Medical Director shall notify the CEO of Susquehanna Health and the President of the Medical Staff. A summary of the application information shall be transmitted to the Credentials Committee and the Chairman of each department in which the applicant seeks clinical privileges.

(App. at 153 ¶ 5.2-1.)

According to the Bylaws, the Department Chairman then reviews the applicant’s information, may interview the applicant, and transmits a written report within thirty days to the Credentials Committee with the Chairman’s recommendations and reasoning for such recommendations. Within sixty days of receiving the Department Chairman’s report, the Credentials Committee is required to submit a written report containing its recommendations and rationales to the Medical Executive Committee. Within sixty days of receiving that report, that Committee is required to make its appointment recommendation. If the Medical Executive Committee recommendation is unfavorable, the Bylaws provide for appeal rights and a hearing.

Medical Officer, reviewed Dr. McGary’s application but quickly realized she did not meet the 100/100 criteria. After discussing her application with Dr. Croll, who is the Chairman of the Medical Center’s Surgery Department, and with Dr. Burks, the Director of the Heart and Vascular Institute at the hospital, Dr. Manchester deemed her application incomplete and did not pass it along for further review. Dr. Manchester informed Dr. McGary that she did not satisfy the Medical Center’s credentialing criteria and that her application would not be submitted for further review.

When Dr. McGary learned that her application had been denied, she suggested to Dr. Manchester that the 100/100 criteria were too stringent and that the Medical Center should be satisfied with her record as it stood. At Dr. Manchester’s request, she researched CT surgery credentialing criteria at other hospitals in the area. That research prompted the hospital to revise its criteria. Nonetheless, believing she was still ineligible, Dr. McGary did not reapply. Instead, she opened a private outpatient vein surgery practice and filed this lawsuit.

In her six-count amended complaint, she alleges violations of Sections 1 and 2 of the Sherman Antitrust Act, 15 U.S.C. §§ 1-2, and the equal protection and due process clauses of the Constitution. She also asserts state law claims for breach of contract, interference with prospective contractual relationships, and conspiracy in restraint of trade.

The District Court dismissed Dr. McGary’s due process and equal protection claims, leaving her to proceed on her antitrust and state law claims.5 Following discovery, the Defendants moved for summary judgment on all remaining claims. The District Court granted that motion. Dr. McGary has timely appealed. II. DISCUSSION6 Dr. McGary asserts that the District Court erred in granting summary judgment in favor of the Defendants on her claim for unlawful combination or conspiracy in restraint of trade under Section 1 of the Sherman Act, her claims for monopolization and attempted monopolization under Section 2 of the Sherman Act, and her state law claims for breach of contract, interference with prospective contractual relationships, and

5 The due process and equal protection claims are not before us on this appeal.

Neither is her claim for injunctive relief, which was also dismissed.

6 The District Court had jurisdiction under 28 U.S.C. §§ 1331 and 1367. We have appellate jurisdiction pursuant to 28 U.S.C. § 1291. We review the District Court’s grant of summary judgment de novo and “view inferences to be drawn from the underlying facts in the light most favorable to the nonmoving party.” Montanez v. Thompson, 603 F.3d 243, 248 (3d Cir. 2010) (citation omitted). “Summary judgment is appropriate where the [c]ourt is satisfied ‘that there is no genuine [dispute] as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Celotex Corp. v. Catrett, 477 U.S. 317, 330 (1986) (citation omitted). A genuine dispute exists only if “the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986).

conspiracy in restraint of trade. Despite the doctor’s disappointment, the District Court was correct.

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