Thakkar, S. v. Allegheny Clinic

Superior Court of Pennsylvania·Decided December 16, 2025·No. 1436 WDA 2024·Unpublished

Opinion

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT O.P. 65.37

SHYAM THAKKAR, M.D. : IN THE SUPERIOR COURT OF : PENNSYLVANIA

Appellant :

:

:

v. :

:

:

ALLEGHENY CLINIC, ALLEGHENY : No. 1436 WDA 2024 HEALTH NETWORK AND ACDH : ENDOSCOPY II, LLC :

Appeal from the Judgment Entered October 22, 2024 In the Court of Common Pleas of Allegheny County Civil Division at No(s): GD-21-001545

BEFORE: BOWES, J., STABILE, J., and BENDER, P.J.E. MEMORANDUM BY BENDER, P.J.E.: FILED: December 16, 2025 Appellant, Shyam Thakkar, M.D., appeals from the judgment entered in favor of Appellees, Allegheny Clinic (“AC”), Allegheny Health Network (“AHN”), and ACDH Endoscopy II, LLC (“ACDH II”), following a non-jury trial. We affirm.

Background

The trial court found the following facts in pertinent part: Dr. Thakkar is an advanced therapeutic endoscopist gastroenterologist. Findings of Fact and Conclusions of Law (“FFCL”), 6/10/24, at ¶ 1. AC is a domestic nonprofit corporation that employs physicians and is a subsidiary of West Penn Allegheny Health System, Inc., whose member is AHN. Id. at ¶ 2. ACDH II is a Pennsylvania limited liability company comprised of physician-members who perform procedures at McCandless Endoscopy Center. Id. at ¶ 3. ACDH

II owns a 50% membership interest in McCandless Endoscopy Center, and Allegheny General Hospital (“AGH”) owns the remaining 50% membership interest. Id.1 Beginning in 2008, AC employed Dr. Thakkar as an advanced therapeutic endoscopist gastroenterologist. Id. at ¶ 4. In September 2010, Dr. Thakkar became a 20% member of ACDH II. Id. at ¶ 5.2 Dr. Thakkar performed procedures at McCandless Endoscopy Center. Id. On July 1, 2017, Dr. Thakkar entered into a Physician Employment Agreement with AC. Id. at

¶ 6. In relevant part, it provided:

5. Term. Unless terminated or renewed as hereinafter provided, the period of Physician’s employment under this Agreement shall commence as of July 1, 2017 (the “Commencement Date”), and shall terminate on June 30, 2020 (“Initial Term”). Each twelve (12) month period beginning on the Commencement Date, and each twelve month period thereafter which begins with each anniversary date of the Commencement Date, will be referred to as a “Contract Year.” Upon the expiration of the Initial Term and each applicable Renewal Term (hereinafter defined), this Agreement shall renew for additional successive one (1) year periods (“Renewal Term”), unless at least ninety days (90) prior to the expiration of the Initial Term or the applicable Renewal Term, as the case may be, either party shall have notified the other in writing that it does not intend to renew the Agreement or desires a modification to the terms and conditions of the Agreement. If there has been a timely notice received by one party from the other of an intent not to renew or a desire to modify a term or condition of the Agreement, and if the parties permit employment to continue beyond the above stated expiration date of the Initial Term or any subsequent Renewal Term without

1 Testimony at trial indicated that AGH is an entity within AHN’s network. See N.T., 11/27/23 & 11/30/23, at 165-66, 191, 200, 204-05.

2 Dr. Thakkar testified that he became affiliated with ACDH II as part of his recruitment at AC. N.T. at 63.

mutually acceptable terms and conditions being agreed upon and reduced to writing, this Agreement shall be deemed extended on a month to month basis until such time as (i) the parties execute a legally binding document containing terms and conditions of or (ii) either party provides the other with written notice of termination. The Initial Term together with any Renewal Terms is referred to herein as the “Term”.

Either party may terminate this agreement, with or without cause, by giving the other party one-hundred-eighty (180) days[’]

written notice.

Dr. Thakkar’s Exhibit 1 (“Physician Employment Agreement”) at ¶ 5; see also FFCL at ¶¶ 27-30.

On March 11, 2020, Jennifer Certo, Vice President of the Medicine Institute for AC and an employee of AHN, sent Dr. Thakkar a letter concerning

his Physician Employment Agreement with AC. Id. at ¶ 34. It stated:

This letter serves as notice, pursuant to Section 5 of your Physician Employment Agreement with [AC] dated July 1, 2017 (the “Agreement”), that [AC] desires to modify the terms of the Agreement, effective July 1, 2020. We will present you with a new Physician Employment Agreement, to be effective July 1, 2020, that includes the modified terms.

In accordance with Section 5 of the Agreement, we have provided this letter to you more than 90 days prior to the expiration of the current renewal term of your Agreement (i.e., June 30, 2020).

I will reach out to schedule a meeting to discuss your new Physician Employment Agreement and any questions that you may have regarding this communication.

AHN and AC’s Exhibit F (“March 11, 2020 Letter”); see also FFCL at ¶¶ 35- 37.

On May 15, 2020, Dr. Thakkar discussed the construction of his new contract with Ms. Certo, Diana Deweese, and Dr. Elie Aoun, the division chief of the gastroenterology division. FFCL at ¶ 58; see also N.T. at 75, 249. On

May 27, 2020, Ms. Certo emailed Dr. Thakkar stating that his compensation package was being sent out for a third-party fair market value review to finalize numbers and targets for the new contract. FFCL at ¶ 59. Between May 27 and June 10, 2020, various discussions about compensation, role positions, and metrics took place between Ms. Certo and Dr. Thakkar. Id. at ¶ 60. On June 11, 2020, AHN’s chief medical officer, Dr. Don Whiting — who had reached out to Dr. Thakkar about an opportunity to become the chief outcomes officer in April 2020 — emailed Dr. Thakkar, stating, “[I]t is my understanding that your contract runs out at the end of the month. I will plan to start a search for a new [o]utcomes director on Monday because I don’t want to get to the end of the month and not have a smooth transition from you.” Id. at ¶ 61 (citation omitted); see also N.T. at 73-75. Dr. Thakkar replied that he “realize[d] the importance of having a contract in place.” FFCL at ¶ 61 (citation omitted; brackets added by trial court). Later that day, Ms. Certo communicated to Dr. Thakkar that his compensation and other targets for the new contract met the standards of the market review process. Id. at ¶ 62.

On June 15, 2020, Dr. Thakkar provided a counteroffer to Ms. Certo’s proposed new contract with a significant salary increase. Id. On this same day, Dr. Whiting responded to this email thread, stating, “[B]ecause you did not find ou[r] original offer acceptable[,] I must assume that you are declining the [outcomes] position and therefore I will move forward [to] find another person to fill the spot.” Id. at ¶ 63 (citation omitted; some brackets added).

With the outcomes position withdrawn, Dr. Thakkar’s new contract was required to be negotiated once again by Ms. Certo. Id. at ¶ 64. On June 18, 2020, Ms. Certo, Dr. Aoun, and Dr. Thakkar met to discuss Dr. Thakkar’s counteroffer. Id. at ¶ 65. On June 19, 2020, Dr. Thakkar emailed these parties stating his understanding that his current agreement would continue month-to-month until a new contract was reached. Id. Ms. Certo responded

to his email the same day, writing:

Attached please find an updated term sheet for your review. As noted in the term sheet, we expect that you will review and respond to us no later than close of business on June 26, 2020.

The offer set forth in the attached term sheet will expire at that time.

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Thakkar, S. v. Allegheny Clinic, (Pa. Ct. App. 2025).

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