Gerguis v. Statesboro Hma Med. Grp., LLC.

• Decision Date: 18 March 2015
• Docket Number: No. A14A1616.,A14A1616.
• Citation: 772 S.E.2d 227,331 Ga.App. 867
• Parties: GERGUIS et al. v. STATESBORO HMA MEDICAL GROUP, LLC.
• Court: Georgia Court of Appeals

331 Ga.App. 867

772 S.E.2d 227

GERGUIS et al.

v.STATESBORO HMA MEDICAL GROUP, LLC.

No. A14A1616.

Court of Appeals of Georgia.

March 18, 2015.

Reconsideration Denied April 8, 2015.

Certiorari Denied July 6, 2015.

Chillivis, Cochran, Larkis & Bever, Anthony L. Cochran, Atlanta, Franklin, Taulbee, Rushing, Snipes & Marsh, Daniel Brent Snipes, Statesboro, for Appellants.

Thomerson Macchiaverna Smith & Freeman, Michael Jonas Thomerson, Savannah, for Appellee.

Opinion

MILLER, Judge.

After having sold their private practice to Statesboro HMA Medical Group (“HMA”), Drs. John and Angela Gerguis (collectively “the Doctors”) left their employment with HMA. Thereafter, the Doctors sought an emergency injunction ordering HMA to provide them, and their new medical practice, with copies of all of the electronic patient medical records that they had previously sold to HMA. Following a hearing, the trial court issued an interlocutory injunction denying the Doctors' request for medical records for patients who had not specifically authorized the disclosure of their records, but ordering HMA to provide the Doctors with paper and electronic copies of all records for patients who had provided such authorizations. The Doctors appeal, contending that the trial court erred: (1) in failing to allow the Doctors copies of all patient records pursuant to their contract with HMA; (2) in interpreting the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) to prohibit the Doctors from obtaining copies of all patient records; and (3) in permitting HMA to provide the Doctors with paper, rather than electronic, copies of records. For the reasons that follow, we affirm.

An interlocutory injunction is a device used to maintain the status quo of the parties pending final adjudication of the case and should not be granted except in clear and urgent cases where there is a vital necessity to prevent a party from being damaged and left without a remedy.

(Citation and punctuation omitted.) Drawdy CPA Services v. North GA CPA Services, 320 Ga.App. 759, 760–761, 740 S.E.2d 712 (2013). We will not disturb a trial court's decision to grant or deny an interlocutory injunction absent a manifest abuse of discretion. See Owens v. Ink Wizard Tattoos, 272 Ga. 728, 533 S.E.2d 722 (2000).

The Doctors are primary care physicians practicing in Statesboro. Beginning in 2003, the Doctors and their staff used NextGen, an electronic medical records program, to create and maintain patient records. The Doctors sold their practice to HMA in 2011 and agreed to become HMA employees. As part of the sale, the Doctors transferred to HMA the electronic patient records that they and their staff had created. The Doctors continued to use NextGen to create and maintain medical records during their employment with HMA. The Doctors' NextGen system contained medical records for approximately 5,000 patients.

The employment agreements between the Doctors and HMA specifically provided that HMA would be “the custodian and owner of all patient records”; the records would remain on HMA property at all times during and after the Doctors' employment; and the Doctors would not remove the records from their office or the hospital without HMA's prior approval. The Doctors and HMA also entered into a Medical Records Custody Agreement (the “Agreement”), which provided:

HMA will own and retain custody of the Medical Records and agrees to maintain such Medical Records in accordance with applicable standards and laws of the State in which the Medical Records are located or other such laws as may be applicable, including, but not limited to [HIPAA]....

Notwithstanding the foregoing, [Dr. John Gerguis] shall have the right of access to all of the Medical Records, at reasonable times and upon reasonable notice to HMA, and a right to receive copies of same for clinical, legal, financial, and/or any other appropriate reasons as permitted by applicable law.

By June 2013, the Doctors were unhappy with HMA regarding staffing, compensation, and payment for office services and supplies. On August 1, 2013, the Doctors terminated their employment with HMA effective August 6. Prior to the effective date of the Doctors' termination, HMA asked the Doctors whether they had in place a paper record system or parallel electronic medical record system to assure that they would have access to patient records once they were disconnected from HMA's computer system. The parties also discussed the possibility of the Doctors buying back the medical practice assets from HMA, but the Doctors discontinued negotiations. Upon termination of the Doctors' employment, HMA denied the Doctors access to NextGen.

The Doctors thereafter opened their new practice, South Georgia Family Medicine Associates, P.C. HMA notified approximately 3,500 patients that the Doctors had left HMA and offered the patients three choices: they could remain at HMA and see a different doctor; they could transfer to the Doctors' new practice and fill out an enclosed authorization form to release their medical records; or they could transfer to another doctor's practice and fill out an enclosed authorization to release their medical records.

A small number of patients requested that their records be sent to another doctor. Many patients requested that HMA furnish their records to the Doctors. Through counsel, HMA informed the Doctors in September 2013 that it would provide access to patient medical records in medical emergencies, or where there was an immediate or critical need to do so. HMA also began providing paper copies of records for patients who had submitted authorizations. The paper patient records provided by HMA were voluminous, and different patients' records were sometimes mixed together. The Doctors offered to pay to set up a NextGen portal so that they could access the patient records electronically and HMA agreed to this proposal, but the Doctors later determined that the plan was not feasible.¹

The Doctors and their new practice then filed suit for breach of contract and attorney fees. They sought injunctive relief to allow them access to, and electronic copies of, the records for not only the patients who had authorized HMA to furnish their records to the Doctors, but for all patients in the NextGen system. HMA counter-claimed for breach of contract and attorney fees. In support of their suit, the Doctors and their staff filed affidavits setting forth numerous instances in which records were not received from HMA or were not complete, resulting in the Doctors being unable to schedule procedures and otherwise interfering with patient care.

1. The Doctors contend that, pursuant to the Agreement, they are entitled to records for all patients in the NextGen system—including those patients who have not submitted written authorizations—because the failure to provide such records could interfere with patient care. Specifically, the Doctors argue that, under the Agreement, they are permitted to maintain records for patients whom they have treated previously, even if the patient does...