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Hospital Structure & the Powers of the MEC

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Hospital Structure & the Powers of the MEC

The basic structure of hospital management in relation to the MEC divides power. "Hospitals in this state have a dual structure, consisting of an administrative governing body, which oversees the operations of the hospital, and a medical staff, which provides medical services and is generally responsible for ensuring that its members provide adequate medical care to patients at the hospital.” (El Attar v. Hollywood Presbyterian Medical Center (2013) 56 Cal. 4th 976, 983)

As you read this outline bear in mind that the distinctions between organized medical staff andd the hospital are often blurred by political and financial considerations.  Hospitals can contract with physician owned medical groups to take over large portions of the hospital business.  In doing so, they can exclude from the hospital individual physicians or existing groups.  This is not necessarily medically based and it often has the agreement and support of organized medical staff.  However, the consent of organized medical staff is not a democratic process.  The individuals who occupy positions of power make a choice and their choice may well be political, personal or even financially based.

While Chief of Staff is a prestigious position, in some hospitals it is occupied by people who have concerns about their own skill levels and they use the political process and network to protect themselves.  We have seen cases where bright, talented young physicians have been targeted by Chief of Staff in order to protect that person's practice at the hospital.  with these caveats, read on.

Medical Staff is Separate from the Hospital

The medical staff of a hospital “is a separate legal entity from the hospital” (Natarajan v. Dignity Health (2021) 11 Cal.5th 1095, 1114) and is “responsible for the adequacy and quality of the medical care rendered to patients in the hospital” (Mileikowsky v. West Hills Hosp. (2009) 45 Cal.4th 1259, 1267). Business & Professions Code section 2282.5 (section 2282.5), subdivision (a), provides the medical staff's “right of self-governance” includes establishing standards for medical staff membership and privileges; establishing standards to oversee and manage quality assurance; and initiating, developing, and adopting medical staff bylaws, rules, regulations, and amendments, “subject to the approval of the hospital governing board, which approval shall not be unreasonably withheld.” (See Cal. Code Regs., tit. 22, § 70703, subd. (b).) In cases where Medical Staff acts in lock step with hospital administration at the expense of doctors we often point out (in letters and legal briefs) that California law requires medical staff bylaws to “provide formal procedures for the evaluation of staff applications and credentials, appointments, reappointments, assignment of clinical privileges, appeals mechanisms and such other subjects or conditions which the medical staff and governing body deem appropriate.” (Mileikowsky, at p. 1267; see Cal. Code Regs., tit. 22, §§ 70701, 70703.)

None of these rules address a core concern that the Horowitz office has with MEC's.  The uncompensated time spent in administration leads people with lesser skills and high ambitions to occupy these roles in order to protect and promote their practice.  Limitations on privileges for competing doctors, peer review criticizing the work for competing doctors are two methods that we have seen used by career politicians who use their MEC positions improperly.

To the doctor operating under these rules, the complexity of the laws, the variations caused by the by-laws of your particular institution, mirror boards of directors with various entities controlling the hospital, lead to confusion over who has the power to regulate physician conduct and supervise patient safety and care.

Our medical lawyers will help you defend against factual allegations and also navigate the complex and often self-contradictory spheres of power and influence.

Learn More About Hospitals & the MEC

Recently, MEC, Medical Staff and hospital administration collaboration in an improper manner (Patient Safety sacrificed for profits) has become more frequent.  We believe that there is a movement that is just starting to have large physician owned groups (read corporate owned using physician figureheads) to take over hospital practices.  We are exploring various anti-competitive lawsuit strategies to fight this. (We are not the only ones, other excellent physician firms have filed this type of lawsuit.)  Where we believe we are unique (or at least unusual) is in our review of these actions as potential RICO violations (with treble damages and potential criminal referrals).  See our blog on RICO

Triggers to MEC Reporting Under Business & Professions Code Section 805

Most physicians focus on medical issues and few consider state reporting rules until after a crisis is triggered. Take a moment to review the “official” State of California Medical Board 805 Reporting Form. There are 11 check boxes that trigger reporting (and those check boxes are not the exclusive list of medical board reportable actions):

(a) For a Medical Disciplinary Cause or Reason:

  • Termination or revocation of staff privileges
  • Denial/rejection of application for staff privileges
  • Termination or revocation of membership
  • Denial/rejection of application for membership
  • Termination or revocation of employment

(b) For a Cumulative Total of 30 Days or More for Any 12-Month Period, and for a Medical Disciplinary Cause or Reason:

  • Restriction(s) imposed on staff privileges
  • Restriction(s) voluntarily accepted on staff privileges
  • Restriction(s) imposed on membership
  • Restriction(s) voluntarily accepted on membership
  • Restriction(s) imposed on employment
  • Restriction(s) voluntarily accepted on employment

Understanding Reportable Triggers in Medical Staff Privileges

Identifying Reportable Triggers

Some triggers for reporting are clear, such as the termination or revocation of medical staff privileges. However, the term “restrictions on employment” can be ambiguous. Are restrictions reportable if they arise from a personality conflict? If a hospital introduces a new procedure and you apply but are denied participation, is that considered a “Denial/Rejection of application for staff privileges”? These are critical areas where organized medical staff may inadvertently trigger reporting without intending to.

The Role of Legal Counsel

Sometimes, an action is taken, and the reporting requirement is only recognized upon review by medical staff legal counsel. Our medical lawyer group strongly recommends seeking expert advice on “grey area” events to intervene before the process escalates.  We may sometimes directly intervene or advise in the background.  We often warn our doctors that the MEC has lawyers with whom they consult both regularly and on all significant actions.  Your contact with the MEC is also contact with the MEC lawyers - even if you are not told of this.

Negotiating with MEC Lawyers

Negotiations with Medical Executive Committee (MEC) lawyers can sometimes limit or supplement the contents of an 805 report in a way that is more favorable to you. Consulting with experienced legal professionals early can help protect your medical license and ensure that you navigate these complex situations.  Call Daniel Horowitz at 925-283-1863.