Tsadik v. Beth Israel Medical Center

13 Misc. 3d 359
CourtNew York Supreme Court
DecidedJuly 12, 2006
StatusPublished

This text of 13 Misc. 3d 359 (Tsadik v. Beth Israel Medical Center) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tsadik v. Beth Israel Medical Center, 13 Misc. 3d 359 (N.Y. Super. Ct. 2006).

Opinion

OPINION OF THE COURT

Judith J. Gische, J.

[360]*360Defendants move, preanswer, to dismiss plaintiffs complaint for wrongful termination/breach of contract, breach of the implied covenant of fair dealing and tortious interference with contract. Plaintiff opposes the motion in all respects.

Background and Factual Allegations

The court accepts plaintiffs factual allegations as true for the purpose of this motion. (Morone v Morone, 50 NY2d 481 [1980]; Beattie v Brown & Wood, 243 AD2d 395 [1st Dept 1997].) The primaiy issue raised is whether the court has subject matter jurisdiction over the parties’ dispute or whether plaintiff must first exhaust certain administrative remedies under the Public Health Law that are available to medical doctors.

In deciding defendants’ motion, the court considers the following alleged facts:

On January 30, 2003, plaintiff, a medical doctor, entered into an employment contract with defendant Beth Israel Medical Center, also known as Beth Israel Medical Center Foundation, Inc. for employment as a hospitalist and attending physician in the neurosurgery department. Plaintiff began working at the hospital on the effective date of the contract (Mar. 3, 2003), but resigned on April 16, 2003. He contends his resignation was forced and demanded by Dr. Fink who told him he would be “fired,” and his termination reported to the National Practitioner Data Bank (NPDB) if he did not comply. The NPDB collects information about adverse actions involving health care practitioners.

Notwithstanding the foregoing, defendant Judith Block, a divisional risk manager for the hospital, filed a report about plaintiff with the NPDB on May 23, 2003. She reported that plaintiff had been asked to resign and his clinical privileges terminated “due to substandard or inadequate care” provided by plaintiff and “because of serious problems with his job performance including failure to communicate with other staff regarding] patient care plans and followup, providing unreliable information] re [gar ding] patients to other staff, unsound medical judgment and leaving work early.”

Plaintiff wrote to the hospital on June 3, 2003 demanding that the hospital remove the entry. The hospital responded by letter dated June 13, 2003 as follows:

“At the time of your resignation, the credentialing process was not complete and your appointment to the Medical Staff was pending. However, as a hospitalist, even had you received an appointment to the [361]*361Medical Staff, such appointment would automatically end with termination of employment. Under these circumstances, the Medical Staff By-Laws do not give you the right to a hearing with respect to termination of your position. We will forward a copy of the Medical Staff By-Laws to you should you so request.
“As you were informed, there were quality issues in the care you rendered that led to the request for your resignation. These are documented in your QI [quality improvement] file. You were offered the opportunity to resign in lieu of termination and you did submit a letter of resignation. I am satisfied that the request for your resignation was justified.
“We are obligated by law to report to the National Practitioner Data Bank terminations and resignations of physicians under investigation relating to professional incompetence. We will however clarify to the Data Bank that at the time of your resignation you did not have recourse to a hearing or other form of due process . . . .”

Plaintiff alleges that although he was ready to perform under the contract, the hospital wrongfully and without cause discharged plaintiff and refused to let him serve as agreed under the contract (first cause of action). He further alleges his contract included an implied covenant of good faith and fair dealing, which the hospital breached (second cause of action). His third and fourth causes of action assert claims that Dr. Sen and Ms. Block induced the hospital to breach the contract. Plaintiffs fifth and sixth causes of action are that Dr. Sen and Ms. Block tortiously interfered with the contract. In support of the third, fourth, fifth and sixth causes of action against the named individual defendants, plaintiff states that Dr. Sen is the chairman of his department, and that Dr. Sen disliked him on a personal level having nothing to do with his (plaintiffs) abilities. Plaintiff claims Ms. Block acted outside the scope of her employment by inducing the hospital to breach the contract, and by reporting him to the NPDB.

Defendants contend that, because this dispute arises from plaintiffs termination by the hospital, he must first exhaust the administrative remedies found within Public Health Law §§ 2801-b and 2801-c. Having failed to first pursue such administrative remedies, defendants argue, deprives this court of subject matter jurisdiction. Defendants contend that the administrative [362]*362grievance process must be followed regardless of whether plaintiff seeks only monetary damages or some other remedy as well. (Indemini v Beth Israel Med. Ctr., 4 NY3d 63 [2005]; Moallem v Jamaica Hosp., 264 AD2d 621 [1st Dept 1999].)

Plaintiff argues that his claims are not subject to the administrative remedies of the Public Health Law (§ 2801-b) for three reasons. First, because the contract contains a clause requiring all disputes under the contract to be brought in the courts in the State and County of New York. Next, plaintiff contends that, because he was not terminated by the governing body of the hospital, but forced to resign by his direct supervisor, Public Health Law § 2801-c does not apply, because there is no “improper practice” to challenge at an administrative hearing. Finally, plaintiff contends that there are two aspects to the contract: his hospital privileges and his right to remuneration. While he acknowledges that any dispute about hospital privileges would have to be resolved administratively, he argues that disputes about money damages alone cannot be resolved by the administrative agency and needs to be brought to court.

Discussion

Section 2801-b (1) of the Public Health Law provides in relevant part:

“It shall be an improper practice for the governing body of a hospital to refuse to act upon an application for staff membership or professional privileges or to deny or withhold from a physician . . . staff membership or professional privileges in a hospital or to exclude or expel a physician . . . from staff membership in a hospital or curtail, terminate or diminish in any way a physician’s . . . privileges in a hospital, without stating the reasons therefor, or if the reasons are unrelated to standards of patient care, patient welfare, the objectives of the institution or the character or competency of the applicant.”

If the governing body of the hospital engages in an improper practice, as that term is statutorily defined, then an aggrieved physician can file a complaint with the Public Health Council, which must promptly conduct a confidential investigation. (Public Health Law § 2801-b [2], [3].)

In enacting Public Health Law § 2801-b, the Legislature intended to provide physicians and hospitals with a forum for [363]*363their disputes, discourage groundless claims, and to offer the courts some aid in resolving such disputes, where parties fail to reach agreement. (Matter of Cohoes Mem. Hosp.

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Bluebook (online)
13 Misc. 3d 359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tsadik-v-beth-israel-medical-center-nysupct-2006.