Lead Opinion
Charles R. Willman, M.D. appeals from the district court’s
I.
Willman, a board-certified general surgeon, had medical staff privileges at Methodist Medical Center and St. Joseph Hospital,
The events that eventually led to the revocation of Willman’s privileges began on February 19, 1982, when Willman treated nineteen-year-old Bobby Fanning, who had been admitted to Methodist Medical Center for treatment of a gunshot wound to the chest. The head nurse of the Critical Care Unit as well as another nurse who had assisted in the treatment of Willman expressed concern to Drs. Stuber and Andres about Willman’s treatment of Fanning. Because of the nurses’ complaint, Methodist’s administrator, Dr. Andres, and Dr. Beheler, a board-certified thoracic surgeon and Chairman of the Intensive Care Subcommittee of the Methodist Critical Care Committee, met to discuss Will-man’s treatment of Fanning. Dr. Andres decided to contact Dr. Stuber, the Chairman of the Critical Care Committee. Dr. Stuber convened a special meeting of the committee, which concluded that Willman had mismanaged Fanning’s treatment. After numerous hearings before various medical staff committees, the Board of Trustees of Methodist Medical Center voted unanimously by secret ballot in favor of a motion stating in part that
the finding of the Medical Executive Committee, that Dr. Charles Willman’s clinical care of Bobby J. Fanning ... was clearly different from that of his peers and potentially harmful, was supported by substantial evidence; it is further resolved that the action of the Medical Executive Committee in requiring that Dr. Charles Will-man be required to obtain immediate consultation from a Board Certified general surgeon and/or thoracic surgeon on all eases of chest trauma requiring hospitalization and conducting a retrospеctive review of the Doctor’s hospitalization cases for the year 1981 was warranted, appropriate and necessary.
After reviewing Willman’s 1981 hospital admissions, the Quality Assurance Committee referred to the Medical Executive Committee eight of the fifty-three cases reviewed. Although the Medical Executive Committee concluded that four cases “did not reflect reasonable clinical judgment about serious clinical data” and cited five cases as examples of Willman’s “consistent pattern of deficiency in completion of discharge summaries, history and physical, surgical reports, and progress notes,” the committee voted to defer any action pending review of Willman’s 1982 cases. The Quality Assurance Committee reviewed Willman’s 1982 cases and determined that thirteen of the forty-one cases contained deficiencies. After considering the Quality Assurance Committee’s report on the 1982 eases, the Medical Executive Committee adopted a proposal to reprimand Willman, discuss the findings of the Quality Assurance Committee with him, and conduct prospective periodic reviews of his hospital admissions. Willman, however, refused to discuss the proposal with the president of the medical staff. The Medical Executive Committee, therefore, unanimously voted, “based on medical evidence and in the interest of quality patient care,” to suspend Willman’s privileges. The Methodist Board of Trustees unanimously voted by secret ballot to affirm the committee’s suspension of Willman’s privileges. Pursuant to the board’s instructions, the Medical Executive Committee re-reviewed with Willman the cases that the Quality Assurance Committee had forwarded to it. After this hearing, at which Willman was permitted to present evidence and call witnesses, the Medical Executive Committee determined that in eight of the seventeen reviewed cases Willman had provided substandard care. The committee therefore recommended, and the board agreed, that Will-man’s privileges should remain suspended.
In late 1983, Willman applied to have his medical staff privileges reinstated. Various committees of thе medical staff considered the application and recommended denial because Willman had not submitted any evidence indicating that the deficiencies that led to the suspension of his privileges had been corrected. Article II, section three of Methodist’s medical staff bylaws in effect in 1983 provided that “[t]he applicant shall provide adequate information for a proper evaluation of his application. If there is any doubt as to
Because of Willman’s treatment of Fanning, St. Joseph Hospital also reviewed Will-man’s staff privileges. In August 1982, the Executive Committee of the St. Joseph Board of Directors directed the medical staff to consider the chest trauma consultation requirement that had been placed on Will-man at Methodist to determine if a similar requirement would be prudent at St. Joseph. After a series of committee meetings and hearings, the Executive Committee of the medical staff recommended that Willman be required “to obtain immediate consultation from a board-certified general surgeon and/or thoracic surgeon on all cases of chest trauma requiring hospitalization.” The Board of Directors voted to adopt this recommendation.
In September 1982, the Chairman of the St. Joseph Board of Directors directed the medical staff to review Willman’s cases to determine the appropriateness of his staff privileges. Dr. Weinand, the Chief of Staff and Chairman of the Medical Executive Committee, appointed a special subcommittee to review Willman’s 1981 and 1982 cases. The subcommittee forwarded seventeen of the 1981 and 1982 cases to the Medical Executive Committee, which held hearings on May 31 and June 7, 1983. During the hearings, Willman indicated that he would not be willing to take steps to improve his surgical and medical knowledge. The committee then voted to revoke Willman’s privileges at St. Joseph Hospital.
Willman then requested an ad hoc hearing. The ad hoe committee members voted to uphold the Medical Executive Committee’s decision. Willman appealed to the Board of Directors, and the board appointed an Appellаte Review Committee to review the decision. The committee, which consisted of one physician and two laypersons, found that the previous committees had been fair and impartial and that it would be in the best interests of patient care to affirm their decisions. The Board of Directors then voted unanimously by secret ballot to revoke Will-man’s medical staff privileges at St. Joseph Hospital.
In December 1983, the Circuit Court of Buchanan County, Missouri, ordered that Wilhnan’s privileges at St. Joseph Hospital be reinstated. Fourteen months later, however, the Missouri Court of Appeals reversed the Circuit Court’s order, and Willman’s privileges at St. Joseph were once again revoked. State ex rel. Willman v. St. Joseph Hosp.,
Willman then filed this action, which alleged that the defendants had violated sections one and two of the Sherman Act and had interfered without justification in his existing and prospective economic relationships with his patients in violation of state law. The defendant hospitals filed a counterclaim for abuse of process. The district court granted the defendants’ motion for summary judgment' on the Sherman Act claims and, declining to exercise pendent jurisdiction, dismissed without prejudice Willman’s state-law claim and the counterclaim. Willman v. Heartland Hosp. East,
II.
We review a grant of summary judgment de novo. Grand Island Express v. Timpte Indus., Inc.,
A. Section One Allegations
To prove a violation of section one of the Sherman Act, 15 U.S.C. § 1, a plaintiff must show an agreement in the form of a contract, combination, or conspiracy that imposes an unreasonable restraint on trade.
Unilateral actions of a single entity do not give rise tо antitrust liability under section one of the Sherman Act. Copperweld Corp. v. Independence Tube Corp.,
We have not deсided whether a hospital has the capacity to conspire with its medical staff. Flegel v. Christian Hosp., Northeast-Northwest,
We need not decide whether a hospital can conspire with its medical staff, for even if we assume that the defendant hospitals had the capacity to conspire with their medical staffs, we conclude that Willman’s section one claim fails. “Although revocation of a doctor’s privileges may, perforce, eliminate competition by decreasing the number of doctors in a given specialty, this alone will not give rise to an antitrust violation.” Johnson v. Nyack Hosp.,
We first consider Willmаn’s argument that there is a genuine issue of fact concerning whether the peer review process was a sham. Specifically, Willman contends that the evidence “creates a genuine issue as to whether the peer reviewers reached the wrong result, and, as a consequence, removed a qualified physician.” Based upon the record, we agree
Although the record contains evidence from physicians to the effect that in their opinion Willman had provided acceptable care, we nevertheless conclude that it would not have been unreasonable for Willman’s peer reviewers to have doubts about the quality of Willman’s patient care. Physicians who were not affiliated with the hospital defendants and who did not practice in St. Joseph and therefore did not compete with Willman agreed that in some cases Willman had rendered care that was belоw the acceptable standard. For example, Dr. Ben MeCallister, a board-certified internist and cardiologist, reviewed the charts of nine of Willman’s patients and found that three of these patients had received substandard care. Dr. Paul Koontz, a board-certified general surgeon, reviewed eight of Willman’s charts and found that Willman’s care was deficient in four cases. Dr. Alfred Gervin, who is board certified in general surgery, critical care medicine, and emergency room medicine, concluded that in twenty-three of the thirty-four charts that he had reviewed, Willman had either violated the acceptable standard of care or had rendered “terrible care.” Dr. Kenneth Mattox, a board-certified general surgeon and thoracic surgeon, reviewed only the Fanning case and concluded that Willman’s “lack of understanding of the potential ramifications to the patient, coupled with his actual mismanagement and mistreatment of the patient, demonstrate a careless and reckless disregard for the patient.” Indeed, one of Willman’s mеdical experts concluded that “some of the cases, you know, represent outer edges of what we perceive as standard of care.”
Corrective action against a physician does not violate the antitrust laws if thé physician’s peer reviewers had legitimate medical reasons to believe that the physician provided substandard care. Johnson,
That the hospital boards and not the physicians whom Willman alleges were his competitors had authority to make the final decision concerning Willman’s staff privileges further undermines Willman’s theory of antitrust liability. Missouri law required that the hospital boards make the final decision. Mo.Code Regs. tit. 13, § 50-20.021(2)(A)15. Each surviving board member who participated in the decisions regarding Willman’s staff privileges submitted an affidavit confirming that the boards had made the final decisions concerning Willman’s staff privileges and that no physicians had attempted to pressure, coerce, or lobby the board members to terminate Willman’s privileges. The affidavits further stated that no physicians had threatened to boycott or retaliate against the hospitals if the boards did not accept the medical staffs’ recommendation to terminate Willman’s privileges. Willman submitted no evidence to dispute the affidavits.
In addition to arguing that the medical staffs conspired with the defendant hospitals, Willman contends that the members of the medical staffs conspired аmong themselves to eliminate him as a competitor. Regardless of whether a hospital has the capacity to conspire with members of its medical staff, the staff physicians can conspire among themselves, giving rise to section one liability. See, e.g., Oksanen,
B. Section Two Allegations
In addition to his section one claim, Willman raised two claims alleging a violation of section two of the Sherman Act, 15 U.S.C. § 2. Willman alleges that in terminating his staff privileges, the defendants denied him access to the hospitals’ facilities, which are essential for him to compete. The essential facilities doctrine requires those in possession of facilities which cannot practical
The defendants argue that the essential facilities doctrine does not apply to a hospital’s facilities in a staff privilege revocation ease. We need not decide this question, however, for, as we have discussed above, the defendants’ concerns about the care provided by Willman were legitimate. Terminating the staff privileges of a physician who may be rendering substandard care does not constitute an unreasonable denial of the use of the hospitals’ facilities.
Willman also asserts a section two claim for monopoly leveraging. The elements of a monopoly-leveraging claim are (1) monоpoly power in one market, (2) the use of that power, however lawfully acquired, to foreclose competition, to gain a competitive advantage, or to destroy a competitor in another distinct market, and (3) injury caused by the challenged conduct. Carleton v. Vermont Dairy Herd Improvement Ass’n,
C. Pendent Jurisdiction
Having disposed of all of the federal claims, the district court declined to exercise jurisdiction over the remaining state-law claim and the counterclaim. Willman argues that the district court should not havе declined to exercise supplemental jurisdiction. The proper question, however, is whether the district court should have exercised pendent jurisdiction over the state-law claim and the counterclaim. The Judicial Improvements Act of 1990 codified the former common law doctrines of pendent and ancillary jurisdiction under the new rubric of supplemental jurisdiction. See 28 U.S.C. § 1367. See also McLaurin v. Prater,
“The decision to exercise pendent jurisdiction over state law claims is a matter of discretion for the district court.” Hassett v. Lemay Bank & Trust Co.,
The judgment is affirmed.
Notes
. The Honorable D. Brook Bartlett, United States District Judge for the Western District of Missouri.
. Willman named as defendants ten physicians who had staff privileges at one or both of the defendant hospitals. The defendant physicians are Andres, Beheler, Craig, and Weinand (general surgeons), Krueger, MсDonald, McMillen, Mullican, and Stuber (internists), and Lockard (gastroenterologist).
. Recognizing that the possibility of antitrust liability may impede effective peer review, Congress enacted the Health Care Quality Improvement Act of 1986. 42 U.S.C. §§ 11101-11152. The Act immunizes medical peer review from antitrust liability if the challenged action is taken "in the reasonable belief that [it] was in the furtherance of quality health care.” Id. § 11112(a). We need not consider the impact of the Act on Willman's claims, for the Act was enacted after the events at issue in this case and is not retroactive.
. Approximately sixty-five physicians participated in the review and evaluation of Willman. Willman claims that forty-three of the reviewers were his competitors because they practiced in one or more of the areas in which Willman practiced: general surgery, urology, gynecology, gastroenterology, and internal medicine. We express no opinion on whether Willman has properly defined his competitors.
Concurrence Opinion
concurring.
I join in Judge Wollman’s comprehensive opinion, except that I would join thе Fourth Circuit (en banc) and the Third Circuit in concluding that for Sherman Act purposes, absent special circumstances not present in this case, “the peer review process does not represent the sudden joining of independent economic forces that section one [of the Sherman Act] is designed to deter and to penalize.” Oksanen v. Page Memorial Hospital,
