Brief Fact Summary. A hospital’s system of regulating anesthesiologists was challenged as violating the rights of the doctor.
Synopsis of Rule of Law. A hospital may have an exclusive arrangement with one or more doctors to regulate departmental staffing.
In a quasi-legislative proceeding there is no constitutional right to any hearing.View Full Point of Law
Issue. May a hospital have an exclusive arrangement with one or more doctors to regulate departmental staffing?
Held. (Brown, J.)Â Yes.Â A hospital may have an exclusive arrangement with one or more doctors to regulate departmental staffing.Â To provide a set of medical services, a hospital may decide to enter into an exclusive contract.Â This decision is not subject to judicial review, so long as the decision was rationally based on a legitimate concern with providing medical services.Â In this case, FCH (Defendant) was concerned with insufficient provision of anesthesia services by its unregulated anesthesiologists.Â The contract with Dr. Hass, P.C. (Defendant), was a response to this legitimate concern with no basis for judicial review.Â Affirmed.
Discussion. Sudden increases in costs are a major issue in medicine today.Â Many believe that contracting services is an answer to this problem.Â However, others believe this as anticompetitive and therefore, antithetical to minimizing costs.