Heckman v. Wellsboro, 4:20-CV-01680
| Decision Date | 07 July 2021 |
| Docket Number | No. 4:20-CV-01680,4:20-CV-01680 |
| Parties | MATTHEW HECKMAN, Plaintiff, v. UPMC WELLSBORO, NORTH PENN COMPREHENSIVE HEALTH SERVICES, and THE GREEN HOME, Defendants. |
| Court | U.S. District Court — Middle District of Pennsylvania |
(Judge Brann)
On September 15, 2020, Dr. Matthew Heckman commenced this lawsuit against UPMC Wellsboro, North Penn Comprehensive Health Services, and the Green Home.1 On November 23, 2020, Heckman filed a five-count amended complaint seeking a declaratory judgment regarding Heckman's employment agreement and relief for alleged violations of the False Claims Act ("FCA"), the Pennsylvania Whistleblower Law, the Fair Labor Standards Act ("FLSA"), and the Pennsylvania Wage Payment and Collection Law ("WPCL").2 The Defendants subsequently filed three motions to dismiss.3
The Defendants' motions are now ripe for disposition; for the following reasons, the motions are denied.
Under Federal Rule of Civil Procedure 12(b)(6), a complaint may be dismissed, in whole or in part, if the plaintiff has failed to "state a claim upon which relief can be granted." A motion to dismiss "tests the legal sufficiency of a pleading"4 and "streamlines litigation by dispensing with needless discovery and factfinding."5 Where applicable, "Rule 12(b)(6) authorizes a court to dismiss a claim on the basis of a dispositive issue of law."6 This is true of any claim, "without regard to whether it is based on an outlandish legal theory or on a close but ultimately unavailing one."7
Following the Roberts Court's "civil procedure revival,"8 the landmark decisions of Bell Atlantic Corporation v. Twombly9 and Ashcroft v. Iqbal10 tightened the standard that district courts must apply to 12(b)(6) motions.11 These cases "retired" the lenient "no-set-of-facts test" set forth in Conley v. Gibson andreplaced it with a more exacting "plausibility" standard.12 Accordingly, after Twombly and Iqbal, "[t]o survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to 'state a claim to relief that is plausible on its face.'"13
"A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged."14 "Although the plausibility standard does not impose a probability requirement, it does require a pleading to show more than a sheer possibility that a defendant has acted unlawfully."15 Moreover, "[a]sking for plausible grounds . . . calls for enough facts to raise a reasonable expectation that discovery will reveal evidence of [wrongdoing]."16
The plausibility determination is "a context-specific task that requires the reviewing court to draw on its judicial experience and common sense."17 No matter the context, however, "[w]here a complaint pleads facts that are 'merely consistent with' a defendant's liability, it 'stops short of the line between possibility and plausibility of entitlement to relief.'"18 Likewise, "[t]hreadbarerecitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice."19
Nevertheless, when disposing of a motion to dismiss, the Court "accept[s] as true all factual allegations in the complaint and draw[s] all inferences from the facts alleged in the light most favorable to [the plaintiff]."20 The Court is not, however, required to apply this tenet to legal conclusions.21 As a matter of procedure, the United States Court of Appeals for the Third Circuit has directed district courts evaluating motions under Rule 12(b)(6) to proceed in three steps:
North Penn is a Federally Qualified Health Center ("FQHC") that provides medical services in Tioga County, Pennsylvania.23 North Penn operates healthclinics in six municipalities within Tioga County, including Blossburg, Lawrenceville, Wellsboro, Elkland, Mansfield, and Westfield.24 In 1988, North Penn entered into a partnership with Soldiers & Sailors Memorial Hospital in Wellsboro to form Laurel Health System.25 In 2012, Laurel Health System was acquired by Williamsport-based UPMC Susquehanna, which then renamed the hospital to UPMC Wellsboro.26
After completing a fellowship in obstetrics, Dr. Heckman began employment at North Penn in 2016 as a primary-care and obstetrical-care physician.27 Heckman and North Penn executed a five-year employment contract on April 22, 2016 (the "North Penn Employment Agreement").28 The agreement set Heckman's base salary as a North Penn physician, although it allowed North Penn to adjust Heckman's base salary beginning in the second year of Heckman's employment.29 Adjustments (either upward or downward) could be made based on the "financial performance" of Heckman's practice in the prior contract year.30
The North Penn Employment Agreement also contained a restrictive covenant prohibiting Heckman from practicing medicine within a twenty-five mile radius for one year following the contract's termination.31 Heckman could nullify the covenant by forfeiting a year's salary.32 If Heckman opted not to do so, however, and instead breached the covenant, North Penn reserved the right to seek injunctive relief against him and to extend application of the covenant by a variable period of time.33 Additionally, the North Penn Employment Agreement stated that North Penn would be responsible for maintaining any medical records prepared by Heckman.34 Following termination of the agreement, Heckman would remain entitled to access and make copies of these records.35
Heckman was promoted to North Penn's Medical Director in late-2017, and then to North Penn's Chief Medical Officer in March 2018.36 As Chief Medical Officer, Heckman supervised a staff of over thirty medical providers.37 He also maintained his practice as a physician.38 Heckman does not allege that he entered into a new contract with North Penn or that the North Penn EmploymentAgreement was modified as a result of his promotions. Accordingly, the Court assumes that the North Penn Employment Agreement remained in effect throughout the course of Heckman's employment.
Then, on June 1, 2018, North Penn assigned its rights and obligations under the North Penn Employment Agreement to UPMC Wellsboro.39 Heckman consented to this assignment and affirmed that all terms and conditions of the North Penn Employment Agreement would remain in effect.40 It appears at this point that UPMC Wellsboro assumed responsibility for paying Heckman's salary and issuing his W-2.41 At the same time, Heckman maintained his employment with North Penn as if nothing had changed; he continued practicing as a physician and serving as North Penn's Chief Medical Officer.42 North Penn still retained control over Heckman's compensation (it paid Heckman's salary to UPMC Wellsboro which then paid Heckman), and Heckman reported directly to North Penn's CEO, James Nobles.43
On August 1, 2019, UPMC Wellsboro, North Penn, and the Green Home (a UPMC Wellsboro affiliate) executed a tri-party agreement leasing Heckman to theGreen Home.44 Under this arrangement, Heckman was to serve as the Green Home's Medical Director.45 The Green Home would then remit payment for Heckman's services to UPMC Wellsboro.46 Heckman alleges that he had an employment agreement with UPMC Wellsboro and the Green Home memorializing this relationship.47 However, he also asserts that the parties expected that Heckman would receive payment from the Green Home (via UPMC Wellsboro) based on "custom and practice."48
As an FQHC, North Penn is eligible to receive federal grant funding from the United States Department of Health and Human Services under Section 330 of the Public Health Service Act (codified at 42 U.S.C. § 254b).49 To apply for a Section 330 grant, an eligible health center must complete and submit a grant application.50 The Health Resources and Services Administration sets forth policies and conditions regarding Section 330 grant recipients.51 These policies arelocated in the Health Center Program Requirements, the Health Center Program Terms and Definitions, and the Health Center Compliance Manual.52
On January 7, 2020, North Penn submitted a Section 330 grant application.53 In this application, North Penn certified that it was "not part of a parent, affiliate, or subsidiary organization."54 North Penn also stated that it required competitive bids for any purchase costing more than $3,000.55 North Penn further acknowledged that it:
Heckman alleges that North Penn made these certifications "repeatedly and falsely" in several of its Section 330 grant applications.57
At all relevant times, Janie Hilfiger was the President of UPMC Wellsboro and a "prominent" member of North Penn's Board of Directors.58 Heckman alleges that she used her position to "exercise control over all conditions" of Heckman's employment, and that this was connected to her effort to "dominateand control North Penn."59 All other members of North Penn's Board were board members of or employed by UPMC...
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