Last year, the hospital’s board of directors unilaterally adopted a conflict-of-interest policy that forbids any doctor with a financial interest that competes with the hospital from voting as a staff member or serving as a staff officer. It also adopted a 20-page "Medical Staff Code of Conduct" that establishes a "Standard of Behavior" for medical staff members and gives the hospital administration the authority to investigate and impose discipline on physicians for any violations of the code. Medical Staff members were required to acknowledge and pledge obedience to these policies upon grant or renewal of privileges.

After attempts at mediation, on April 24 the medical staff executive committee—with the support of more than 100 staff physicians—filed suit against the hospital, alleging that these new rules violate the medical staff’s right to democratic self-governance.

The restraining order would have, among other things, restored control of the medical staff dues fund (which amounts to about $250,000) to the medical staff officers, allowed medical staff meetings without interference by the administration, and prohibited the administration from granting hospital privileges to physicians who have not been credentialed by the medical staff.

The hospital argues, among other things, that the medical staff is not a separate entity under the law. The organized medical staff, they say, is a department within the hospital, and therefore it does not have standing to sue the hospital in the first place.

In his ruling, Judge Henry J. Walsh said that the doctors failed to prove "irreparable harm" from the new hospital rules, one of the requirements for a temporary restraining order. The judge did not rule on the core issues of the case. Another hearing has been set for May 27.

At this year’s meeting, the CMA House of Delegates voted that CMA shall communicate its support for the medical staff of the Community Hospital of San Buenaventura in its fight for independent and democratic self-governance. The resolution further called on CMA to encourage members to contribute to CMA’s Legal Defense Fund, and to use the fund to support the medical staff’s legal actions.

Click here for information on how to contribute to the Legal Defense Fund.

Contact: CMA’s legal information line, 415/882-5144 orlegalinfo@cmanet.org.