Weiss v. York Hospital

745 F.2d 786, 39 Fed. R. Serv. 2d 1444
Court of Appeals for the Third Circuit·Decided September 27, 1984·No. Nos. 82-3507, 82-3580 and 82-3581·Published·Cited by 140 cases

Opinion

[791]*791OPINION OF THE COURT

BECKER, Circuit Judge.

I. Introduction and General Background - 791

II. The Facts - 793

A. Hospital Services in the York MSA - 793
B. Discrimination Against D.O.s at York - 794
C. Staff Privileges Application Precedure - 796
D. Doctor Weiss’ Application for Staff Privileges - 797

III. Procedural History and Problems - 799

A. Before the District Court - 799
B. Appellate Jurisdiction - 801
(1) The Defendants’ December 9 Appeal - 802
(2) The Plaintiff’s December 13 “Cross-Appeal” - 803
C. Class Certification - 804
(1) The Necessity of Proof of Demand - 805
(2) The Requirements of Fed.R.Civ.P. 23 - 807
(a) Rule 23(a) - 807
(i) Numerosity - 807
(ii) Commonality - 808
(iii) Typicality - 809
(iv) Adequacy of Representation - 811
(b) Rule 23(b)(2) - 811
D. The Vicinage Requirement of 28 U.S.C. § 1393(a) - 811

IV. The Sherman Act Claims - 812

A. Section 1 of the Sherman Act - 812
(1) Proof of an Agreement; Is There a Sufficient Number of Conspirators? - 813
(2) Proof of Restraint of Trade - 817
(a) Introduction - 817
(b) Is the Defendants’ Exclusionary Conduct the Equivalent of a Concerted Refusal to Deal (Boycott)?
- 818
(c) The “Learned Profession” Exception - 820
(d) The District Court’s Charge and The Sherman Act Section 1 Verdict as to Weiss - 822
(3) Substantiality of Effect on Interstate Commerce - 824
B. Section 2 of the Sherman Act - 825
(1) Relevant Market - 825
(2) Monopoly Power - 827
(3) Willful Acquisition or Maintenance of Monopoly Power - 827
C. The Propriety and Scope of the
Injunction Under Section 16 of the
Clayton Act - 828

V. Conclusion - 831

I. INTRODUCTION AND GENERAL BACKGROUND

This antitrust case arises from the refusal to grant hospital staff privileges to a physician. The plaintiff, Malcolm Weiss, is an osteopath1 who was denied staff privileges at York (Pennsylvania) Hospital. Dr. Weiss brought this suit, both individually and as representative of the class of all osteopathic physicians in the York Medical Service Area (York MSA),2 against York Hospital (“York”), the York Medical and Dental Staff, and ten individual physicians who served on the York Medical Staff Executive Committee and the York Judicial Review Committee. York is controlled by, and, at the time Dr. Weiss applied for staff [792]*792privileges, was exclusively staffed by doctors who graduated from allopathic medical schools.3

The gravamen of Weiss’ lawsuit is that, although allopaths (hereinafter referred to as medical doctors or M.D.s) and osteopaths (D.O.s) are equally trained and qualified to practice medicine,'4 his application for staff privileges at York hospital was turned down solely because of his status as an osteopath. Generally, a physician can admit and treat patients only at hospitals where he has staff privileges. If a patient desires to receive medical treatment at a hospital for which that patient’s doctor does not have staff privileges (either because the patient prefers the reputation of that hospital or because that hospital is the only available hospital with equipment that is necessary for the patient’s treatment) then the patient’s doctor will have to refer the patient to another physician who has staff privileges at the hospital in question. See Weiss v. York Hospital, 548 F.Supp. 1048, 1053 (M.D.Pa.1982) (finding of fact, No. 32-34). As the result of such a referral the first doctor loses the opportunity to treat (and therefore to charge) the patient.

In addition, Weiss alleged that the treatment that he received at the hands of the M.D.s who control York sent a message to other D.O.s in the York MSA not to apply for staff privileges at York. In Weiss’ submission, this scheme to exclude D.O.s from York Hospital was motivated by a desire to restrict the ability of D.O.s to compete with M.D.s, thereby increasing the profits of the M.D.s. Weiss contends that this conduct violates sections 1 and 2 of the Sherman Act, 15 U.S.C. §§ 1 & 2, and state law (tortious interference with contractual relations).

The district court bifurcated the trial. The liability phase commenced on August 11, 1982, and on September 1, 1982, the jury returned unanimous answers to 42 special verdict questions. The district court molded the jury’s responses into findings of liability in favor of the class (but not Weiss) and against the medical staff on the section 1 claim; in favor of Weiss and the class and against the hospital on the section 2 claim; and in favor of Weiss and against the hospital and four of the individually named defendants on the state law claims. All other defendants were exonerated on all other claims. Adopting the jury’s findings of fact (by which it considered itself bound), the district court thereupon entered a final injunction against the hospital and the medical staff pursuant to section 16 of the Clayton Act, [793]*79315 U.S.C. § 26, essentially prohibiting them from future discrimination against osteopaths. In addition, the district court scheduled a second trial to determine damages based on plaintiffs’ claim for treble damages under section 4 of the Clayton Act, 15 U.S.C. § 15, ordered that all class members be notified of their right to apply for damages. Prior to commencement of that trial, defendants and plaintiffs brought these appeals.

The case raises a number of complicated legal questions. Our opinion is divided into five parts. Part I is this introduction and general background. In part II we detail the facts.

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Weiss v. York Hospital, 745 F.2d 786, 39 Fed. R. Serv. 2d 1444 (3d Cir. 1984).

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