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Agency Update: Physicians Not Agents of Hospital
Agency Update: Physicians Not Agents of Hospital
By Madelyn Lamb, Esq. of Hinshaw & Culbertson LLP
In Magnini v. Centegra, 2015 IL App (1st) 133451, plaintiff brought a medical malpractice action against Centegra Health Systems and several doctors seeking to recover damages for a personal injury allegedly sustained as a result of gastric bypass surgery and later surgeries to treat complications arising out of the original surgery. The sole theory of liability asserted against the hospital (Centegra) was vicarious liability for the actions of the doctors who were alleged to have been actual agents of the hospital.
The appellate court affirmed summary judgment in favor of the hospital. The court reasoned that the doctors were independent contractors and not agents of the hospital. Therefore, the hospital could not be held vicariously liable for the alleged negligence of the doctors.
The case contains a well-founded and thorough discussion of the law on the issue of the principal-agent relationship in the hospital setting. As a result, the decision is helpful to the analysis of medical malpractice actions sounding in agency.
The court states the general rule that in Illinois a hospital may be liable in a medical malpractice action into circumstances: directly, when the hospital owes the plaintiff an independent duty to review and supervise the plaintiffaEUR(TM)s medical care, or vicariously, where there exists a principal-agent relationship between the hospital and the physician accused of malpractice. In order to prevail on a claim for actual agency, or respondeat superior, a plaintiff must establish that:
A principal-agent relationship existed between the defendant and the actor;
The principal controlled or had the right to control the conduct of the alleged agent; and
The alleged conduct fell within the scope of the agency.
aEURoeThe hallmark of agencyaEUR? is the principalaEUR(TM)s right to control the manner in which the agent performs the work. By contrast, an independent contractor undertakes to produce a given result but is not controlled with regard to how that result is achieved. A principal will not be held vicariously liable for the acts of an independent contractor. Generally, a hospital is not liable for the actions of one who provides medical care as an independent agent outside the hospitalaEUR(TM)s control.
In Magnini, the appellate court reviewed the evidence and agreed that the doctors were independent contractors. All of the doctors testified in their depositions that they were not employees of the hospital. The doctors also testified regarding their independence in making patient care decisions, and how the surgery was performed. The type of surgery that was performed was based on the physicians own expertise as an independent member of the medical staff. The provision of the healthcare services was up to the physicianaEUR(TM)s independent judgment.
The court also reviewed the bariatric services agreement and the medical director services agreement, both of which provided that the physicians retain exclusive control over treatment decisions. The court noted, consistent with case law, the fact that an independent contractor is required to follow certain policies and procedures does not, standing alone, constitute sufficient control to create an agency relationship. Thus, although the hospital promulgated various policies and procedures via its bylaws, there was no evidence that the hospital retained the right to control patient care decisions, decisions that were expressly committed to the individual doctoraEUR(TM)s discretion and independent medical judgment.
For additional information, please contact
Madelyn at
mlamb@hinshawlaw.com or (618) 277-2400
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