Medical Staff

The effect on exclusive contracts

Medical Staff Briefing, July 1, 2008

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Hospitals that engage physicians in exclusive contracts or employment agreements need to be aware that such arrangements—if not crafted carefully—can create potentially dangerous loopholes. Michael Callahan, Esq., a senior healthcare attorney at Chicago-based Katten Muchin Rosenman, LLP, says Robert Lee Berry, the anesthesiologist at the center of the Kadlec case (see “Kadlec overview” below), fell through a pretty big one.

Berry was a member of Covington, LA–based Lakeview Anesthesia Associates, which had an exclusive contract with Lakeview Regional Medical Center. Callahan says physicians under exclusive contracts with hospitals typically waive their fair hearing rights.

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