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Health Law Keyed to Furrow
Mahan v. Avera St. Luke’s
Facts
Avera St. Luke's (Defendant) is part of a regional health care system sponsored by the Sisters of the Presentation of the Blessed Virgin Mary of Aberdeen, South Dakota. Since 1901, the Presentation Sisters have provided quality health services to the Aberdeen community. In mid-1996, Defendant's neurosurgeon left Aberdeen. While recruiting his replacement, (Defendant) learned that most neurosurgeon applicants would not care to come to Aberdeen if there was already an orthopedic surgeon practicing in the area. Defendant recruited a neurosurgeon successfully in December of 1996. It was around this time Defendant learned that OSS (Plaintiff), a group of Aberdeen orthopedic surgeons, were going to build a day surgery center that would compete directly with Defendant. During the first seven months that OSS's (Plaintiff) surgery center was operating, (Defendant) suffered a 1,000-hour loss of operating room usage. Defendant responded by closing Defendant's medical staff with respect to doctors requesting spine surgery privileges and closed its medical staff to applicants for orthopedic surgery privileges. OSS (Plaintiff) recruited Dr. Mahan (Plaintiff), a spine-fellowship-trained orthopedic surgeon who practiced orthopedic surgery, in the summer of 1998. Mahon's (Plaintiff) application for staff privileges at ASL (Defendant) was denied. Mahan (Plaintiff) and OSS (Plaintiff) initiated this action against Defendant, challenging the Board's decision to close the staff. The circuit court determined that Defendant breached the Staff Bylaws when it delegated power regarding medical staff issues by closing the staff without first consulting the staff. Defendant appealed.
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