Villodas v. HealthSouth Corp.

338 F. Supp. 2d 1096, 2004 U.S. Dist. LEXIS 26913, 2004 WL 2252067
CourtDistrict Court, D. Arizona
DecidedSeptember 29, 2004
DocketCIV.02-2527-PHX-MHM
StatusPublished
Cited by3 cases

This text of 338 F. Supp. 2d 1096 (Villodas v. HealthSouth Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Villodas v. HealthSouth Corp., 338 F. Supp. 2d 1096, 2004 U.S. Dist. LEXIS 26913, 2004 WL 2252067 (D. Ariz. 2004).

Opinion

ORDER

MURGUIA, District Judge.

Plaintiff, a former employee of Defendant HealthSouth Corporation (“Health-South”) has filed a Complaint alleging that she was discriminated against based on her age, in violation of the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. §§ 621 et seq. (Count I); and race (Hispanic) and/or national origin (Puerto Rican), in violation of Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e et seq., and 42 U.S.C. § 1981 (Counts II and III). The claims asserted in Counts I through III are against Defendants HealthSouth and Molly Callanan, a HealthSouth employee and Plaintiffs supervisor at the time of the relevant events. Plaintiff also has asserted a state law claim for tortious interference with contract against Defendant Callanan (Count IV). *1099 Plaintiffs Complaint further contains allegations involving emotional distress and respondeat superior (Count V). 1

Defendants have filed motions for summary judgment, supported by legal memo-randa, as to all of Plaintiffs claims (Doc. 39-42). Defendants also have filed a joint statement of undisputed material facts on summary judgment with exhibits (Doc. 43 & 44). Plaintiff has filed a response on summary judgment (Doc. 47) but did not file a separate statement of facts as required by Local Rule 1.10(1). Defendants have filed their respective reply memoran-da (Doc. 48 & 49). The Court enters the following Order on Defendants’ motions for summary judgment.

I.

Standard of Review.

A motion for summary judgment may be granted only if the evidence shows “that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). To defeat the motion, the non-moving party must show that there are genuine factual issues “that properly can be resolved only by a finder of fact because they may reasonably be resolved in favor of either party.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 250, 106 S.Ct. 2505, 2511, 91 L.Ed.2d 202 (1986). The party opposing summary judgment “may not rest upon the mere allegations or denials of [the party’s] pleadings, but ... must set forth specific facts showing that there is a genuine issue for trial.” Rule 56(e). See also, Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586-87, 106 S.Ct. 1348, 1356, 89 L.Ed.2d 538 (1986).

II. .

Background Facts.

Defendant HealthSouth Corporation (“HealthSouth”) owns and/or operates healthcare facilities in the United States and other countries. Plaintiff became a HealthSouth employee in or about September 1996 when HealthSouth purchased Professional Sports Care (“PSC”), a rehabilitation facility in New York state where Plaintiff was employed. At the time, Plaintiff worked at the PSC rehabilitation center as Director of Rehabilitation. After HealthSouth purchased the PSC facility, Plaintiffs title became “Administrator” although her duties remained substantially the same.

In May 1997, Plaintiff requested and was granted a transfer to the Phoenix area where she began working as a Staff Physical Therapist (“PT”) within HealthSouth’s “Paradise Valley cost center”. She remained in this position until she was “laid off’ from employment on November 10, 2001. At the time of the employment decision in this case, Plaintiff was over the age of 40.

The “Paradise Valley cost center” consists of a group of four outpatient rehabilitation facilities that are linked for administration and budgeting purposes. At the time of her layoff, and for several months prior, Plaintiff worked at one of these four facilities known as the East Bell Road facility. Of the four facilities in the Paradise Valley cost center, the East Bell Road facility was the only facility with two full-time PTs. Melissa Burrill was the other therapist at the East Bell Road facility. Ms. Burrill also served as the Site Coordinator. Plaintiff reported to Ms. Burrill who in turn reported to the Administrator *1100 of the Paradise Valley cost center, Defendant Molly Callanan. Ms. Callanan began working for HealthSouth in 1999 as a Staff PT. In 2000, she was promoted to Administrator of the Paradise Valley cost center.

In July 2000, Ms. Callanan prepared a Performance Appraisal regarding Plaintiff in which Plaintiff received an overall rating of “3” on an ascending scale of “1” to “4”. In September 2001, Ms. Burrill completed a Performance Appraisal concerning Plaintiff in which Plaintiff received an overall rating of “3.5”. Ms. Burrill noted on the appraisal form that Plaintiffs productivity of 79% needed to be increased to a 90% monthly average.

In October 2001, Mr. Glenn McDowell became Regional Director of Operations for HealthSouth’s outpatient rehabilitation operations in Arizona which included the Paradise Valley cost center. Shortly after assuming this position, Mr. McDowell analyzed various financial performance statistics and related factors, and concluded that PT staff reduction was necessary because the Paradise Valley cost center was not meeting its patient volume and generally was not profitable. Mr. McDowell determined that to improve the cost center’s performance it would be necessary (a) to eliminate one PT position, thereby reducing the number of PTs within the Paradise Valley cost center from five to four, and (b) to have cost center Administrator Cal-lanan (Defendant), a licensed therapist who treated patients on a part-time basis, treat an increased number of patients in addition to performing her administrative functions.

Mr. McDowell and Ms. Callanan conferred about which PT should be laid off, considering the following factors related to the East Bell Road facility: (i) it was the only facility in the cost center with two full-time therapists; (ii) the facility’s patient volume did not justify two full-time therapists; (iii) Ms. Burrill, the other therapist at that facility besides Plaintiff, also was the Site Coordinator; and (iv) Ms. Burrill had consistently higher productivity numbers than Plaintiff. Mr. McDowell also thought that Ms. Burrill had significant physician relationships that could lead to increased patient volume. A review of the cost center as a whole indicated that Plaintiffs productivity numbers were the lowest among the five full-time PTs in the cost center for both September and October 2001. Because it was reasonable to administratively conduct the layoff at the East Bell Road facility, Mr. McDowell and Ms. Callanan selected Plaintiff for layoff. At the time of this decision, another PT within the Paradise Valley cost center was four years older than Plaintiff.

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Bluebook (online)
338 F. Supp. 2d 1096, 2004 U.S. Dist. LEXIS 26913, 2004 WL 2252067, Counsel Stack Legal Research, https://law.counselstack.com/opinion/villodas-v-healthsouth-corp-azd-2004.