News and briefs: Court says medical staff bylaws are not a contract between hospital and medical staff

A Minnesota district court recently ruled that although medical staff bylaws are enforceable and a hospital must follow the provisions of the bylaws, they do not constitute a contract between the hospital and the medical staff. According to an article in Marshall Independent, if the bylaws were treated as a contract, it would interfere with the hospital’s ability to make business and policy decisions on patient care. Also, because Minnesota requires hospitals to adopt medical staff bylaws, treating bylaws as a contract would go against public policy.

The medical staff at Avera Marshall Regional Medical Center in Marshall, Minn. filed a claim against the hospital that charged hospital administrators unilaterally changed medical staff bylaws, which is in violation of said bylaws. Because it did not follow the process for amending bylaws, the medical staff claimed administrators breached its contract with the medical staff. Further, the medical staff charged that the changes made to the bylaws stripped physicians of most of their rights and responsibilities.
 

Avera asked for the lawsuit to be dismissed, saying the medical staff was part of the hospital and therefore had no grounds to sue. In July, a district judge ruled that the medical staff was not an entity with the right to sue; however the lawsuit continued on with individual physicians as the plaintiffs.
 

In this latest ruling regarding the medical staff bylaws, the court said Avera Marshall has the right to change the bylaws “as long as it substantially complies with procedures in the bylaws,” reports Marshall Independent.
 

Robert Meiches, MD, CEO of the Minnesota Medical Association told amednews.com the decision sets a bad precedent. The ruling diminishes “the role of the physician in making patient care decisions, in conducting medical staff investigations and peer review proceedings and performing regular duties.”