The Care Group Heart Hospital v. Roderick J. Sawyer, M.D.

80 N.E.3d 190, 2017 WL 2691228, 2017 Ind. App. LEXIS 270
CourtIndiana Court of Appeals
DecidedJune 22, 2017
DocketCourt of Appeals Case 49A05-1603-PL-580
StatusPublished
Cited by2 cases

This text of 80 N.E.3d 190 (The Care Group Heart Hospital v. Roderick J. Sawyer, M.D.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Care Group Heart Hospital v. Roderick J. Sawyer, M.D., 80 N.E.3d 190, 2017 WL 2691228, 2017 Ind. App. LEXIS 270 (Ind. Ct. App. 2017).

Opinion

Brown, Judge.

The Care Group Heart Hospital (the “Hospital”) appeals from an order denying its motion to dismiss issued on January 28, 2013, a final judgment entered on February 18, 2016, and an order denying its motion to correct errors issued the same day, in favor of Roderick J. Sawyer, M.D. 1 The Hospital raises one issue which we revise and restate as whether the trial court erred in denying the Hospital’s motion to dismiss and in entering judgment in favor of Dr. Sawyer. Additionally, Dr. Sawyer presents the following issues on cross-appeal:

I. Whether the court erred in granting partial summary judgment in favor of the Hospital; and
II. Whether the court abused its discretion in awarding attorney fees to Dr. Sawyer as a result of the Hospital’s misconduct during discovery.

We affirm in part, reverse in part, and remand. 2

Facts and Procedural History

Dr. Sawyer began practicing as a cardiologist in 1996 and became a partner/shareholder of The Care Group (“TCG”) in 1999. In 2003, he became a member of the Hospital when it was founded by physicians of TCG and St. Vincent Health. On July 1, 2010, St. Vincent Health purchased the assets of TCG, resulting in the formation of the St. Vincent Medical Group, Inc. (“SVMG”). At that point, Dr. Sawyer became an employee of SVMG. On July 22, 2011, SVMG notified Dr. Sawyer by letter that his employment was terminated, effective immediately. The letter stated:

The decision to terminate your [employment] was made due to your continued failure to comply with SVMG’s policies, guidelines and expectations around appropriate coding services and medical record documentation, despite SVMG’s *194 efforts to help you improve. Further, as we have also discussed on several occasions; your office management style and unprofessional behavior has contributed to a dysfunctional work environment.

Appellant’s Appendix Volume 2 at 116.

The relationship between Dr. Sawyer, SVMG, and the Hospital is governed by three contracts. First, SVMG and Dr. Sawyer are parties to an employment agreement (the “Employment' Agreement”) regarding Dr. Sawyer’s employment by SVMG as a cardiologist. Second is the Amended and Restated Operating Agreement of the Hospital (the “Operating Agreement”), signed by the Hospital’s secretary, which governs “certain aspects of the operations” of the Hospital and sets forth “the rights and obligations of the Members,” which included Dr. Sawyer. Id, at 118. Third, SVMG, Dr. Sawyer, and the Hospital signed a “Joinder Agreement” regarding the redemption of Dr. Sawyer’s membership interest in the Hospital in the event of the. termination of his employment. Id, at 114,

The letter of July 22, 2011, stated that Dr, Sawyer’s employment, under the Employment Agreement was terminated pursuant to Section 4.2-2(a) and 4.2-2(i). These provisions, as well as other relevant sections of the Employment Agreement, are as follows:

ARTICLE IV TERM AND TERMINATION ■
4.1 Term.- This Agreement shall be effective as of. the date of its -execution but the employment contemplated hereunder shall begin on July 1, 2010 (“Physician’s Start Date”). The Agreement shall have a term of ten (10) years beginning with Physician’s Start Date. The Agreement shall automatically renew thereafter for one (1) year terms....
4.2 Termination. Notwithstanding Section 4.1, this Agreement shall terminate on the occurrence'of any of the following ■ events: ;
⅜ ⅜ $ ⅜ ⅜
4.2-2 Immediate Termination for Cause. [SVMG] may immediately, terminate this Agreement at its sole option by providing Physician written notice, upon the occurrence of any of the following:
(a) any act or omission of Physician which, in [SVMG’s] reasonable opinion, after consultation with-the Division (or as determined through the "Division’s peer review process for (i) the evaluation ‘ of the qualifications, competence, or professional conduct of a professional health care provider, or (ii) the' evaluation of patient care (collectively, the “Peer Review Matters”), as set forth in I.C. § 34-30-15-16), is grossly and materially contrary to the business interests, reputation or goodwill of [SVMG];
⅜? ⅜ ⅜: ⅜ ij*
(i) in [SVMG’s] reasonable opinion, Physician consistently fails to provide professional medical services within the standard of care expected by [SVMG];
‡ ⅜ ⅝ ⅜ ⅜
ARTICLE VIII
MISCELLANEOUS
8.14 Joinder Agreement re: SVHCI. If, as. of the date of this Agreement, Physician is a member of [the Hospital], as a continuing condition ’ of employment hereunder a Joinder Agreement having the form attached hereto as Exhibit’ C shall remain in effect as among Physician, [the Hospital], and [SVMG].'

Id. at 94-95, 103,- Dr. Sawyer signed the Employment Agreement on May 10, 2010, *195 and -Richard I. Fogel, M.D., signed as CEO of SVMG ón June 25, 2010.

The Joinder Agreement provides as follows:

This Joinder Agreement is effective as of the 1st day of July, 2010, by and among [SVMG], [the Hospital], and Roderick J. Sawyer, M.D. (“Physician”). WHEREAS, [SVMG] and the Physician are parties to that certain Physician Employment Agreement of even [sic] date herewith (the “Agreement”); and WHEREAS, Physician is a member of [the Hospital]; and
WHEREAS, [the Hospital] is a member .of St. Vincent Heart Center of Indiana, LLC (“SVHCI”); and
WHEREAS, the parties hereto desire that Physician and [the Hospital] shall cause Physician’s membership interest in [the Hospital] to be redeemed and Physician to no longer have any continuing direct or indirect membership, ownership or investment interest in SVHCI in the event that Physician’s employment referenced in theJ Agreement is terminated for any reason (other than a termination pursuant to Section 4.4(c)[ 3 ] of the Agreement).
NOW THEREFORE, in consideration of the foregoing, premises and the-mutual agreements and covenants contained herein, the parties hereto agree as follows:
1. Mandatory Redemption. Within ninety (90) days of any termination of employment between Physician and [SVMG] ... and-provided that [the Hospital] then holds a membership interest in SVHCI, Physician and [the Hospital] shall eause Physician to be redeemed of his interest in [the Hospital] such that, following such redemption, Physician shall have no continuing direct or indirect membership, ownership or investment interest, in SVHCI.

Id. at 114.

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80 N.E.3d 190, 2017 WL 2691228, 2017 Ind. App. LEXIS 270, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-care-group-heart-hospital-v-roderick-j-sawyer-md-indctapp-2017.