Spring View Hospital, LLC v. Karen Jones (Now Epley)
2016 SC 000189
| Ky. | Oct 31, 2017Background
- Consolidated appeals from three cases where plaintiffs alleged hospitals negligently granted staff privileges to non-employee physicians (Dr. Guy Sava at Lake Cumberland Regional Hospital; Dr. Daniel Bailey at Spring View Hospital), leading to patient injuries from surgeries.
- Adams sued LCRH alleging negligent credentialing of Dr. Sava; trial court dismissed because Kentucky had not recognized negligent credentialing as a separate tort.
- Jones (Epley) sued Spring View for negligent credentialing of Dr. Bailey; trial court dismissed on that ground and the statute-of-limitations question produced disputed facts on appeal.
- Spalding plaintiffs sued Spring View after severe post‑operative complications from Dr. Bailey; Dr. Bailey later settled/bankrupted; the trial court granted summary judgment for Spring View based chiefly on inadequate expert proof and the court of appeals affirmed.
- The Kentucky Supreme Court granted review to decide whether negligent credentialing is a distinct tort; it declined to recognize a new tort, affirmed the Spalding summary judgment, and remanded Adams and Jones for proceedings under common‑law negligence principles.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Kentucky should recognize negligent credentialing as a standalone tort | States should allow suits holding hospitals liable for negligently granting/continuing privileges to incompetent non‑employee physicians | Courts should not create a new tort; existing negligence/malpractice remedies suffice; recognizing the tort has uncertain policy consequences for hospitals (esp. rural) | Court refused to recognize negligent credentialing as a new cause of action; plaintiffs may proceed on ordinary negligence theories where appropriate |
| Accrual/statute of limitations for hospital credentialing claim (Jones) | Jones did not discover a viable claim against Spring View until discovery responses in 2012 | Spring View: Jones had earlier notice (e.g., other doctors’ complaints, publicity); attorney knowledge should be imputed | Reversed dismissal; knowledge of opposing counsel for other clients not imputed; triable facts exist—summary judgment inappropriate on limitations ground |
| Effect of settling or bankrupting the physician on hospital claim (Spalding) | Settlement with or bankruptcy of physician does not necessarily bar plaintiff’s claim against hospital for its own negligence | Spring View argued settlement/bankruptcy and potential circular indemnity would preclude or impair hospital liability | Settlement without admission of fault and bankruptcy discharge of physician did not preclude proceeding against hospital; but Spaldings’ claim failed on other grounds (insufficient expert proof) |
| Standard of care and admissible expert proof regarding hospital bylaws | Expert: hospital bylaws and higher internal credentialing standards should define hospital’s legal duty | Hospital: bylaws may inform factfinder but do not raise or change the legal standard of care; expert testimony elevating bylaws to legal standard is erroneous | Court affirmed summary judgment for Spring View because plaintiffs’ expert improperly equated bylaws with the legal standard; plaintiffs must prove the ordinary, objective hospital negligence standard with competent expert proof |
Key Cases Cited
- Carroll v. Meredith, 59 S.W.3d 484 (Ky. App. 2001) (standard of review for legal questions)
- Giuliani v. Guiler, 951 S.W.2d 318 (Ky. 1997) (courts may develop common law in absence of legislative action)
- Wehr Constructors, Inc. v. Assurance Co. of America, 384 S.W.3d 680 (Ky. 2012) (public policy typically set by legislature)
- Darling v. Charleston Cmty. Mem'l Hosp., 211 N.E.2d 253 (Ill. 1965) (origin of negligent credentialing theory)
- Paulino v. QHG of Springdale, Inc., 389 S.W.3d 462 (Ark. 2012) (rejection of negligent credentialing in light of peer‑review immunity and malpractice framework)
- Wiseman v. Alliant Hospitals, Inc., 37 S.W.3d 709 (Ky. 2000) (discovery rule in medical malpractice accrual)
- Blair v. Eblen, 461 S.W.2d 370 (Ky. 1970) (standard jury instruction on hospital negligence)
- Reams v. Stutler, 642 S.W.2d 586 (Ky. 1982) (medical malpractice elements)
- Schelling v. Humphrey, 916 N.E.2d 1029 (Ohio 2009) (discussion of negligent credentialing and bifurcation)