March 1, 2010 Recent Legal News

Peer Review

Red Flag Rules

Malpractice

Fraud

Hospital 

Peer Review

Desai v Lawnwood Hospital 
Fla Trial Ct

Dr. Anil Desai sued Lawnwood Hospital to overturn his removal from the medical staff and won.  He continues to win in court against the hospital.  The Board met in session and without medical staff support voted to remove the pathologist from the staff.  Dr. Desai sued and got an injunction to forbid his removal until the case was decided.  This is the second suit by the medical staff or its member against the hospital and the hospital keeps losing.  The earlier lost suit was when the hospital at the state supreme court.  Lawnwood has appealed this trial court decision to the appellate court.  The trial court stated that Desai was one of two pathologists and there was no medical reason why the Board should dismiss him.  The Board also went against the medical staff bylaws the court said and these are an enforceable contract.  Sounds like a witch hunt and a very poor hospital attorney.        Top

Red Flag Rules

ABA v FTC
USDC DC

As I hope all physicians and hospitals know the red flag rules have been delayed until June 1.  This means no one must get visual ID until then to prevent identity theft.  The District Court has also ruled that attorneys are exempt form the rules and the AMA is hoping to piggy back on that ruling.  The medical organizations have petitioned the FTC to drop them from the rules but should probably have sued them as the ABA did.          Top

Malpractice

Dinnat vTexada
La Ct App

Dinnat sued a hospital for negligent credentialing of a physician as part of a med mal suit.  The court distinguished between credentialing which is before a physician starts to work at a hospital and supervision which is after the physician starts to work at the hospital.  The difference is credentialing is a separate tort but supervision comes under the state's Malpractice Act and is therefore part of malpractice. 

Medical Society v New Hampshire
NH Supreme Ct.

New Hampshire had attempted a raid on the fund paid into by physicians for malpractice claims.  The high court said that this was a no no.  Those providers who paid into the funds have a vested right in deciding how any surplus will be used and that right can not be usurped by the state.  Several other states such as Wisconsin and Pennsylvania are attempting to raid their funds to put money into the general fund.  This ruling may give them pause.   

Griesbach v Ross
Mich Supreme Court

Since a new Democrat has been added to the Supreme Court in 2008, the court has voted for more lenient med mal rules.  The first was that providers have 63 days after being noticed regarding a suit to to challenge the notice of intent.  Recently, the court overruled the lower court in how long the statute of limitations is for med mal cases.      Top

Fraud

US v Mercy Med Ctr
Settlement

Mercy Medical Center in Springfield, Mass. has agreed to pay $2.8 million to the feds after self reporting that it had failed to document the minimum number of hours for rehab.  

US v Bourseau
Sentencing

Robert Bourseau, the former owner of the Los Angeles City of Angles hospital was sentenced to three years in federal prison.  The 75 year old also is to pay $4.1 million in restitution. He has two homes.  He was convicted of paying people for unnecessary medical treatment.  He and the co-owner of the hospital have agreed to re-pay $10 million to settle civil fraud charges.         Top

Hospital

Radiology Assoc. of Sacramento v Sutter
Filed

 I recently reported on the rift between the two organizations with Sutter terminating the contract with Radiological Associates and bringing the service in house.  Now the law suits start.  Radiology Associates state that Sutter owes them $1 Million in past due fees.  The fees are for technical services since the group owns the MRI machines housed in the hospitals.        Top

Archive

DISCLAIMER: Although this article is updated periodically, it reflects the author's point of view at the time of publication. Nothing in this article constitutes legal advice. Readers should consult with their own legal counsel before acting on any of the information presented.