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Antitrust Keyed to Gavil, 5th Ed.
Summit Health, Ltd. v. Pinhas
Citation:
500 U.S. 322, 111 S.Ct. 1842, 114 L.Ed.2d 366 (1991)Facts
Dr. Simon Pinhas, an ophthalmologist with a national reputation, was on staff at Midway Hospital in Los Angeles since 1981. He performed more eye surgeries than any other surgeon at the hospital and was known for his speed and efficiency. In 1986, Medicare announced it would no longer reimburse for assistant surgeons in eye surgeries, and most hospitals in southern California eliminated this requirement. However, Midway refused to abandon it, which would cost Dr. Pinhas approximately $60,000 annually in payments to competing surgeons for assistance he did not need. When Dr. Pinhas refused to sign a “sham contract” offering compensation for services he would not perform, the hospital initiated peer review proceedings against him, which he alleged were unfair and biased. His staff privileges were terminated, and the hospital distributed negative reports about him to other facilities, effectively preventing him from practicing elsewhere in Los Angeles. Summit Health, the parent company, owned 19 hospitals and 49 other healthcare facilities across multiple states and internationally.
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