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Brinton v. IHC Hospitals12/29/1998
act, and his failure to thereafter object to this alleged violation of the Bylaws, in contravention of his contractual duty to do so, precludes Dr. Brinton from raising this objection on appeal. In addition, Dr. Brinton's argument is overly technical. The Hospital substantially complied with its obligations. Dr. Brinton was provided with notice of the charges against him and a full and fair hearing before an independent panel on March 20 and 21, 1991 (the "March 1991 Hearing Panel"). Whether that hearing took place as a result of the MEC's action or the Board's action was immaterial to IHC's contractual obligations. In addition, the hearing was advantageous to Dr. Brinton in the sense that it resulted in the Board's rescinding its proposal to revoke Dr. Brinton's privileges in favor of an extended term of probation. Even if Dr. Brinton did not waive this claim, the procedure actually employed by the Hospital fulfilled, as a matter of law, its contractual obligation to substantially comply with the fundamental purposes of its Bylaws.
D. The Second Amended Terms of Probation
The March 1991 Hearing Panel found that, although there were still concerns about Dr. Brinton's practices, those concerns were not serious enough to merit revocation of his privileges. The panel recommended that Dr. Brinton's probation be continued for at least another year. The Board reviewed the panel's report, agreed that revocation was not warranted, and imposed the "Second Amended Terms of Probation."
On appeal, Dr. Brinton asserts that the Second Amended Terms of Probation were "illegally" imposed because (1) the Board voted to "accept" the March 1991 Hearing Panel's report and could not thereafter create new terms of probation at variance from the panel's recommendations without providing Dr. Brinton with notice of, and a hearing to review, the new terms; and (2) the Second Amended Terms of Probation were created by persons who did not have authority to create them, who did not consult the Board or obtain a formal vote to approve them, and who fraudulently concealed these facts, precluding Dr. Brinton from timely objecting.
The district court held that Dr. Brinton's claims with respect to the imposition of the Second Amended Terms of Probation were among the few that he had not waived. The issues regarding the Second Amended Terms of Probation therefore became a matter of construing IHC's contractual obligations. The court concluded that the record demonstrated IHC had met its obligations under the Bylaws and that Dr. Brinton had been unable to raise any disputed issue of material fact demonstrating a lack of substantial compliance. The court consequently held that the Second Amended Terms of Probation were properly drafted and imposed.
The substance of Dr. Brinton's first allegation is that imposition of the Second Terms of Probation constituted "adverse action," entitling Dr. Brinton to notice and a hearing under FHP §§ 2.10-2.30 and 3.30. Specifically, Dr. Brinton argues that the Board's acceptance of the March 1991 Hearing Panel's recommendation in its entirety constituted a "favorable result" under FHP § 5.32(a). In adopting the panel's recommendation, the Board reversed its suspension of, and motion to revoke, Dr. Brinton's privileges in favor of continued probation. Under FHP § 5.32(a), a result favorable to the practitioner "shall become the final decision of the Board and the matter shall be considered closed." Imposing modified terms under the Second Amended Terms of Probation, argues Dr. Brinton, constituted new "adverse action."
We agree with the district court's Conclusion that the Board's acceptance of the March 1991 Hearing Panel's recommendation did
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