Winston v. American Medical International, Inc.

930 S.W.2d 945, 1996 Tex. App. LEXIS 4548, 1996 WL 580541
CourtCourt of Appeals of Texas
DecidedOctober 3, 1996
Docket01-91-01441-CV
StatusPublished
Cited by51 cases

This text of 930 S.W.2d 945 (Winston v. American Medical International, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Winston v. American Medical International, Inc., 930 S.W.2d 945, 1996 Tex. App. LEXIS 4548, 1996 WL 580541 (Tex. Ct. App. 1996).

Opinion

OPINION

SAM H. BASS, Justice (Assigned).

In the trial court, Donald S. Winston, M.D., Donald S. Winston, M.D., PA, and Galleria Medical Center, Inc. (plaintiffs), sued American Medical International, Inc. (AMI), Twelve Oaks Hospital, and various doctors (defendants). Fundamentally, this is a dispute between doctors over two intertwined issues: (1) the business end of their medical practices; and (2) the denial of Dr. Winston’s application for staff privileges. The trial judge granted defendants’ joint motion for summary judgment, and plaintiffs appeal challenging the adverse ruling. We affirm in part, and reverse and remand in part.

1. Undisputed Facts

In 1981, Dr. Winston opened an industrial medicine practice in the Galleria shopping mall known as Galleria Clinic, Inc., since renamed Galleria Medical Center, Inc. (GMC). In late 1981 and early 1982, and pursuant to the Hospital’s by-laws, Dr. Winston applied 1 for, and then received, temporary staff privileges 2 at Twelve Oaks Hospital, a private hospital owned by Twelve Oaks Medical Center, Inc., corporate affiliate of AMI. During the time Dr. Winston held privileges, approximately 15 patients per month were referred from his Galleria office *948 to the Twelve Oaks Hospital for admission and/or treatment.

By letter dated November 4, 1982, Twelve Oaks notified Dr. Winston that the committee examining his application for permanent staff privileges would recommend to the Board of Directors that his request for staff privileges be denied, and that his temporary privileges were suspended pending the Board’s decision. A few days later, Dr. Winston was informed by subsequent letter of the charts reviewed by the relevant committee in making its recommendations and of his right to a hearing before the Judicial Review Committee. By letter of November 15, Dr. Winston informed Mr. John Sielert, executive director of the Hospital, that he withdrew his “pending application for active staff privileges at Twelve Oaks Hospital.”

Dr. Winston reapplied to Twelve Oaks in March of 1983. The application was referred to the Hospital’s credentials committee for consideration, and it in turn appointed an ad hoe committee to review the medical charts of the patients treated by Dr. Winston in 1982. The ad hoc committee’s findings were then presented back to the Hospital’s credentials committee, of which Dr. Ronald Norris, a defendant, was a member. The credentials committee voted to recommend denial of Dr. Winston’s application.

The executive committee, including Dr. Cumagun and Dr. Jackson, also defendants, next considered the matter. The executive committee accepted the decision of the credentials committee and voted to deny the application. The executive committee notified Dr. Winston by letter dated August 4, 1983, of the decision to deny him medical staff privileges.

Dr. Winston then requested the findings of the executive committee be reviewed by the judicial review committee, a committee of five doctors chaired by Dr. Norbome Powell, also a defendant. The judicial review committee met with Dr. Winston on August 30, 1983, and subsequently voted September 7, 1983, to uphold denial of staff privileges as recommended by the executive committee.

The appellate review committee of the board of directors of the Hospital, which included doctors Norris and Powell, met on October 19, 1983, to consider Dr. Winston’s appeal of the judicial review committee’s decision. The board reaffirmed the denial of Dr. Winston’s request for staff privileges and sent him notice by certified mail dated October 24,1983.

II. Dr. Winston’s Factual Contentions

Fundamentally, Dr. Winston claims to have uncovered an illicit scheme by certain Twelve Oaks doctors to allocate industrial medicine patients among themselves to his professional and financial injury. The objective of the alleged conspiracy was the suppression of competition which in turn would enhance profits subsequently shared by members of the scheme. Dr. Winston claims they achieved their objective by denying him staff privileges in the Hospital, not because of any lack of professional competence, but in furtherance of their malicious plan.

Plaintiffs allege each defendant doctor would send a list of companies that the doctor claimed were his clients to the emergency room nurses at Twelve Oaks. If an employee from a listed company came to the emergency room, the doctor who claimed a relationship with that company was called. The patients had no knowledge of this alleged arrangement. Dr. Winston says the doctors had no agreements with these companies, and that these companies, in fact, had never even heard of these doctors.

Dr. Winston states Dr. Cumagun, chief of surgery at Twelve Oaks, was appointed to ad hoc physician review committees to remove potential competitors from the staff. Dr. Winston claims he ran afoul of the scheme when he contracted with many of the companies and became a competitor of Dr. Cuma-gun. Dr. Winston asserts that after he started competing for patients, the Hospital initiated a malicious peer review process against him.

Dr. Winston claims Twelve Oaks did not follow proper procedures in the review and *949 appeal process according to the Hospital’s bylaws. Dr. Winston avers he was not allowed to appear before the ad hoc committee to discuss his medical charts. Further, Dr. Winston says there was no independent review by the credentials or the executive committees, also in violation of hospital bylaws. Although the judicial review committee allowed Dr. Winston to appear, in contrast to other committees, Dr. Winston states he was told he could not be represented by an attorney, even though the sole purpose of the judicial review committee was to ensure that the bylaws were fairly applied.

Dr. Winston asserts he did not learn of the decision of the appellate review committee of the board of directors until November 1983. Dr. Winston also claims corporate counsel for AMI instructed the executive director of Twelve Oaks to alter the minutes of the October 19, 1983, meeting, and that he was unaware of the alleged alteration until after he initiated his federal suit.

Dr. Winston avers that as a result of the denial of his applications for privileges at Twelve Oaks, he cannot get privileges at any other hospital. Due to the damage to his reputation from the events at the Hospital, Dr. Winston states he was unable to obtain staff privileges or admit patients at other hospitals and was forced to close his practice.

He also asserts that in 1984 or 1985, the defendants set up a competing practice in the Galleria area, “The Doctors at the Galleria,” and hired his former office manager, who then recruited his former patients.

In summary, Dr. Winston claims that:

1) defendants conspired to “eliminate competition for emergency room patients and to prevent the entry of new physicians into the market at [the Hospital]”;
2) he discovered this conspiracy after he obtained his temporary staff privileges;

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Cite This Page — Counsel Stack

Bluebook (online)
930 S.W.2d 945, 1996 Tex. App. LEXIS 4548, 1996 WL 580541, Counsel Stack Legal Research, https://law.counselstack.com/opinion/winston-v-american-medical-international-inc-texapp-1996.