Spring View Hospital, LLC v. Joyce Spalding
2016 SC 000259
Ky.Oct 31, 2017Background
- Consolidated appeals from three malpractice-related suits (Adams, Jones/Epley, Spalding) challenging hospitals’ liability for granting staff privileges to non-employee physicians (negligent credentialing).
- Adams: Lake Cumberland granted privileges to Dr. Sava despite peer reservations and past substance-dependence treatment; plaintiff alleged hospital negligently extended/failed to revoke privileges after harm from surgery. Trial court dismissed negligent-credentialing claim; appeal followed.
- Jones: Spring View granted privileges to Dr. Bailey though application left specialty-board information blank; Jones sued after postoperative complications and later amended to add Spring View for negligent credentialing; trial court dismissed that claim as not recognized by Kentucky law; statute-of-limitations dispute also litigated.
- Spalding: Serious complications and later amputation after surgeries by Dr. Bailey; Spaldings settled with Bailey (bankruptcy) and pursued negligent-credentialing claim against Spring View; trial court granted summary judgment for Spring View on both legal-recognition and inadequate expert-proof grounds.
- Court of Appeals recognized negligent credentialing as a separate tort and remanded Adams and Jones while affirming summary judgment for Spaldings; Kentucky Supreme Court granted review to decide whether to recognize negligent credentialing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Kentucky should recognize negligent credentialing as a standalone tort | Plaintiffs urged recognition to hold hospitals directly liable for negligently granting/maintaining privileges to incompetent independent physicians | Hospitals argued existing negligence/malpractice law and peer-review statutory framework suffice; creating a new tort would have broad, harmful policy consequences | Court declined to recognize negligent credentialing as a separate tort; existing common-law negligence suffices |
| Whether Adams’ negligent-credentialing claim could proceed (procedural dismissal) | Adams argued dismissal on ground the tort is unrecognized was error; underlying negligence claim remains viable | LCRH argued no independent cause of action existed | Court reversed dismissal and remanded for further proceedings under common-law negligence principles |
| Whether Jones’ claim was time-barred under KRS 413.140(1)(e) (statute of limitations) | Jones argued discovery rule delayed accrual until she learned facts showing Spring View’s role (2012 discovery responses) | Spring View argued earlier public reports and counsel’s knowledge put Jones on notice earlier | Court held factual disputes existed and that attorney knowledge for another client could not be imputed to Jones; affirmed denial of summary judgment and remanded |
| Whether Spaldings’ case should survive summary judgment given inadequate expert proof and settlement with doctor | Spaldings argued hospital could be liable for its own negligence; settlement with doctor did not bar remaining claim | Spring View argued plaintiffs lacked competent expert proof and settlement extinguished related claims/created circular indemnity issues | Court affirmed summary judgment for Spring View: plaintiffs’ expert offered erroneous legal standard; settlement and bankruptcy did not automatically bar pursuit but plaintiffs failed expert-proof requirement |
Key Cases Cited
- Darling v. Charleston Cmty. Mem'l Hosp., 211 N.E.2d 253 (Ill. 1965) (origin of negligent-credentialing theory recognizing hospital gatekeeping liability)
- Illinois Cent. R. Co. v. Buchanan, 103 S.W. 272 (Ky. 1907) (early Kentucky authority imposing duty to exercise reasonable care in selection of attending physicians)
- Schelling v. Humphrey, 916 N.E.2d 1029 (Ohio 2009) (discussion of negligent credentialing and bifurcation to avoid juror prejudice)
- Larson v. Wasemiller, 738 N.W.2d 300 (Minn. 2007) (recognition of credentialing-related liability as extension of common-law duties)
- Giuliani v. Guiler, 951 S.W.2d 318 (Ky. 1997) (explaining when courts may adopt common-law causes absent legislative action)
- Wiseman v. Alliant Hospitals, Inc., 37 S.W.3d 709 (Ky. 2000) (articulating discovery rule distinction between injury and harm for accrual of malpractice claims)
- Rogers v. Kasdan, 612 S.W.2d 133 (Ky. 1981) (rejecting jury instructions that improperly elevate hospital bylaws into a separate legal duty)