Hall v. Broadlawns Med. Ctr.

• Decision Date: 09 March 2012
• Docket Number: No. 10–0971.,10–0971.
• Citation: 811 N.W.2d 478,40 Media L. Rep. 1553
• Parties: Mark D. HALL, Appellee, v. BROADLAWNS MEDICAL CENTER, Appellee,andDes Moines Register and Tribune Company, Appellant.
• Court: Iowa Supreme Court

40 Media L. Rep. 1553

811 N.W.2d 478

Mark D. HALL, Appellee,

v.BROADLAWNS MEDICAL CENTER, Appellee,andDes Moines Register and Tribune Company, Appellant.

No. 10–0971.

Supreme Court of Iowa.

March 9, 2012.

Michael A. Giudicessi of Faegre Baker Daniels LLP, Des Moines, for appellant.

Mark E. Weinhardt and Holly M. Logan of Weinhardt & Logan, P.C., Des Moines, for appellee Hall.

Thomas A. Finley and Stacie M. Codr of Finley, Alt, Smith, Scharnberg, Craig, Hilmes & Gaffney, P.C., Des Moines, for appellee Broadlawns Medical Center.APPEL, Justice.

In this case, we consider whether an internal audit created by Broadlawns Medical Center as a result of the theft of drugs by an employee is a public record under the Iowa Open Records Act. The district court concluded that, because the internal audit was provided to the Iowa Board of Pharmacy in order to assist in its investigation of licensing matters arising from the theft, the internal audit amounted to investigative materials in the hands of a licensing board under Iowa Code section 272C.6(4) (2009) and was not subject to disclosure. Upon our review of the facts and law, we conclude that the internal pharmacy audit is a public record, not a confidential record, and that other statutory exceptions asserted to prevent public disclosure are inapplicable. As a result, we reverse in part, affirm in part, and remand the matter to the district court.

I. Procedural and Factual Background.

This case arises out of a dispute involving Broadlawns Medical Center (Broadlawns); Mark Hall, a licensed pharmacist in charge of the pharmacy at Broadlawns; and the Des Moines Register and Tribune Company (Register).

The dispute arose after police in late September 2008 arrested a pharmacist employed by Broadlawns on suspicion of operating a motor vehicle while intoxicated. During an interview with law enforcement authorities, the pharmacist stated she diverted prescription medications, including controlled substances, from Broadlawns. Broadlawns discharged the pharmacist in early October 2008. The Iowa Board of Pharmacy (board) issued an emergency order suspending the pharmacist's license indefinitely.

After taking its emergency action, the board commenced an investigation as a result of the incident. During its investigation, the board contacted Mark Hall. Hall was an employee of Cardinal Health Care, which had a contract with Broadlawns to provide pharmacy services to Broadlawns. Pursuant to the contract, Hall was the pharmacist in charge at Broadlawns. As part of its investigation, the board asked Hall to provide records from the Broadlawns pharmacy so that the board could do an audit. Hall cooperated with the board's investigation and provided the requested documents.

At this point, Hall decided to conduct an internal audit of Broadlawns pharmacy, which was completed in December 2008. When asked why he performed the internal audit, Hall stated:

I wanted immediate answers. I didn't want to wait for somebody else to do an audit and wait for their results. If there was action that needed to be taken, then I wanted to take it. Also, I felt it was the responsible thing to do.

Once the internal audit was completed, Hall contemporaneously provided a copy to the Broadlawns chief medical officer, Dr. Vincent Mandracchia; to the operations manager at Cardinal Health, Ed Nold; and to the board. Hall stated that he provided a copy of the internal audit to the board because the information was relevant to its investigation and Hall thought it important that the board have complete information.

About a year after these events, the board filed charges against Hall and Broadlawns. The board charged Hall with lack of competency and inadequate controls for allegedly failing to maintain an adequate record of controlled substance transactions. The board's statement of charges included a reference to the internal audit provided to the board by Hall and stated that the internal audit confirmed shortages of controlled substances at Broadlawns.

The statement of charges filed by the board against Hall and Broadlawns is a public record. Upon reviewing the statement, the Register on November 23, 2009, sought to obtain Hall's audit under Iowa's Open Records Act. Broadlawns refused to release the audit, however, claiming it was confidential and exempt from disclosure. Further, in order to prevent potential disclosure, Hall, on December 11, 2009, filed an action against Broadlawns seeking declaratory and injunctive relief to prevent Broadlawns from releasing the internal audit. On December 29, 2009, the district court entered a temporary injunction restraining Broadlawns from releasing the internal audit. The Register intervened in the litigation on January 4, 2010.

Following an evidentiary hearing, the district court concluded that Iowa Code section 272C.6(4) barred the release of the audit because “[t]he statutory objective of assuring a free flow of information is better met by extending the confidentiality contained within Iowa Code [section] 272C.6(4) to the audit report.” As a result, an injunction barring release of the internal audit was granted. The Register appealed.

On appeal, both Hall and Broadlawns assert that the district court properly concluded the audit is protected from disclosure under Iowa Code section 272C.6(4). Hall further asserts that, even if Iowa Code section 272C.6(4) is inapplicable, the audit is exempt from disclosure pursuant to Iowa Code sections 22.7(61) and 22.8. Further, Broadlawns argues even if the internal audit is found to be a disclosable public record, Broadlawns should not be assessed costs and attorney fees under Iowa Code section 22.10 because of the safe harbor provisions of Iowa Code section 22.8(4).

The Register counters that because the internal audit was not part of a complaint or the investigative work product of the board, it is not within the scope of Iowa Code section 272C.6(4). Further, the Register asserts that Hall failed to meet the elements under Iowa Code section 22.7(61).

For the reasons expressed below, we conclude that, under the facts and circumstances of this case, the internal audit is not confidential under Iowa Code section 272C.6(4). We further conclude that Hall has failed to make the requisite showing for an injunction to restrain examination of a public record under Iowa Code sections 22.7(61) and 22.8.

II. Standard of Review.

Actions brought under the Iowa open records law are triable in equity. In this equity trial, our review of the issues properly raised in this appeal is de novo. US West Commc'ns, Inc. v. Office of Consumer Advocate, 498 N.W.2d 711, 713 (Iowa 1993). The district court's statutory interpretation of Iowa Code section 272C.6(4) is reviewed for correction of errors at law. DeLaMater v. Marion Civil Serv. Comm'n, 554 N.W.2d 875, 878 (Iowa 1996).

III. Discussion.

A. Applicability of the Confidentiality Provisions of Iowa Code Section 272C.6(4). We first consider whether the confidentiality provisions of Iowa Code section 272C.6(4) apply to the internal audit. We begin our discussion by considering the scope of the statute as reflected in the language of the statute and the policies underlying it. We then analyze whether the facts of this case fall within the scope of section 272C.6(4).

Iowa Code chapter 272C generally relates to the regulation of a lengthy laundry list of licensed professionals. The chapter establishes a framework for the operation of licensing boards—including provisions related to the authority of licensing boards, the duties of licensing boards, and certain procedures regarding the manner in which hearings are conducted. See Iowa Code §§ 272C.3–.4, .6. Among other things, the chapter authorizes a licensing board to establish and register peer review committees. Id. § 272C.3(1)( h ).

Iowa Code section 272C.6(4) provides, in relevant part:

4. In order to assure a free flow of information for accomplishing the purposes of this section ... all complaint files, investigation files, other investigation reports, and other investigative information in the possession of a licensing board or peer review committee acting under the authority of a licensing board or its employees or agents which relates to licensee discipline are privileged and confidential, and are not subject to discovery, subpoena, or other means of legal compulsion for their release to a person other than the licensee and the boards, their employees and agents involved in licensee discipline....

At first blush, it may appear that the statute only protects information “in the possession of a licensing board or peer review committee.” See id. § 272C.6(4). As a result, it could be argued that information in the possession of third parties is simply not protected under the statutory language.

Though appealing for its simplicity, the interpretation of the statute based on possession is problematic. For instance, if a complaint is filed with a licensing board, it seems doubtful that the document in the hands of the licensing board is confidential, but the very same document in the possession of the person who provided the complaint or in the hands of a challenged professional responding to the complaint, is not. Similarly, if an expert whose opinion has been requested by a licensing board submits an expert report to the board, it seems unlikely that the copy of the report in the board's file is protected, but a copy of the same report in the hands of the expert is not.

If the purpose of Iowa Code section 272C.6(4) is to “assure a free flow of information” for accomplishing the purposes of peer review and discipline, it seems at least doubtful that the legislature intended the confidentiality provision to apply simply to copies of documents that are physically possessed by the licensing board and not to the same copies in the hands of persons working with the licensing board or peer review committee. Thus, a plausible argument may be made...