Legal Pearl

Can a Hospital Be Responsible for Patient Care by an Outsourced Physician?

Ann W. Latner, JD
04/18/2024

 

  • The Background

    The hospital asked that the case be dismissed, claiming that its agreement with the group that provided emergency services clearly stated that the ED would be run as an independent contractor with no employer/employee relationships created between the hospital and the physicians employed by the company. Thus, the hospital argued, only the independent contractor and its physicians could be held liable for negligence arising from treatment decisions in the emergency department. The trial court agreed and dismissed the case. The plaintiff appealed, and the case went to the Court of Appeals.

    The Case

    The Court of Appeals noted that the contract between the hospital and the physician group running the ED cut both ways. On the one hand, it did state that no employer/employee relationship is created and that the physician group—not the hospital—is responsible for the acts of its employees. But on the other hand, the agreement gave the hospital ultimate control of ED personnel and the methods and practices of the emergency physicians. The agreement stated that “the overall authority and responsibility for policy, administration and executive control matters relating to the operation of the Emergency Department” shall remain with the hospital. The Court noted that the agreement repeatedly sets forth the hospital’s ultimate control over the ED and places final physician-hiring authority with the hospital.

    The Decision

    Based on this, the Court concluded that there is a genuine dispute about the hospital’s supervision and control of the ED physician, and thus the Court reversed the trial court’s dismissal of the case.

    The Bottom Line

    The hospital argued that it had no employer/employee relationship with the ED physicians, but it was not acting that way.

     

    Reference:

    Latisha A. Gradia, individually, and Latisha A. Gradia, as Next Friend of BXG and BNG, minor children vs Baptist Hospital, Inc. Justia. Accessed December 13, 2022. https://law.justia.com/cases/florida/first-district-court-of-appeal/2022/21-1560.html 

    Ann W. Latner, JD, is a freelance writer and attorney based in New York. She was formerly the director of periodicals at the American Pharmacists Association and editor of Pharmacy Times.