Wednesday, November 25, 2009

Court reviews whether a contract contained an agreement to split physician's fees

COOKEVILLE REGIONAL MEDICAL CENTER AUTHORITY v. CARDIAC ANESTHESIA SERVICES, PLLC, ET AL. (Tenn. Ct. App. November 25, 2009)

At the summary judgment phase, the trial court found that a hospital wrongfully terminated its contract with a physician group. A jury determined the physician group was entitled to recover damages arising from the Hospital's breach. Among the issues raised on appeal is whether the trial court erred in finding that the contract did not contain a fee splitting arrangement in violation of Tenn. Code Ann. section 63-6-225. Finding that the contract contained an agreement to split physician's fees prohibited by Tenn. Code Ann. section 63-6-225, we find the contract to be unenforceable. Accordingly, we reverse.

Opinion available at:
http://www.tba2.org/tba_files/TCA/2009/cookevilleregional_112509.pdf