West Coast Hospital Ass'n v. Hoare

• Decision Date: 10 April 1953
• Citation: 64 So.2d 293
• Parties: WEST COAST HOSPITAL ASS'N v. HOARE.
• Court: Florida Supreme Court

Page 293

64 So.2d 293

WEST COAST HOSPITAL ASS'N v. HOARE.

Supreme Court of Florida, en Banc.

April 10, 1953.

Morris E. White and William A. Gillen of the firm of Fowler, White, Gillen, Yancey & Humkey, Tampa, and Alfred P. Marshall of the firm of Marshall & Rives, Clearwater, for petitioner.

Wolfe, Wightman & Rowe, Clearwater, for respondent.

MATHEWS, Justice.

This suit involves the authority of the petitioner, or of the governing authorities of the petitioner, to grant, withhold or refuse the facilities of its hospital to the respondent as a practicing surgeon, duly admitted to practice his profession in the State of Florida.

The West Coast Hospital Association, the petitioner here, is a non-profit corporation, organized and existing under the provisions of Chapter 617, F.S., F.S.A., and owns and operates the Morton F. Plant Hospital in Clearwater, Florida.

The respondent is a physician, licensed to practice medicine and surgery in the State of Florida, and he resides and practices his profession in Clearwater. Since 1951 the respondent was a regular member of the staff of petitioner's hospital. Prior to October 3, 1951, respondent was granted what is called a 'probationary privilege' to perform major surgical operations in the hospital under the supervision of a member of the Surgical Department. On or about said date, this privilege was terminated, or withdrawn, and thereafter he was not permitted to use the facilities of the hospital to perform major surgical operations. In March, 1952, the respondent filed a bill of complaint seeking to enjoin the petitioner from interfering with his use of the facilities of the hospital for the performance of major surgical operations upon his patients.

In the bill of complaint the respondent here alleged that he was a resident and taxpayer of the City of Clearwater; that the petitioner here is a corporation, not for profit, and owns and operates the hospital in question; that the respondent was a member of the petitioner-corporation by reason of having made contributions to its building fund and by pledges to make further contributions; that the hospital is the only hospital in the city and vicinity to service approximately 35,000 people; the City of Clearwater and the County of Pinellas have made contributions to the funds of the petitioner, raised by taxation, and that the public generally has made gifts and contributions to the petitioner for use in constructing, maintaining and operating the hospital; that the public relies upon the hospital for services and that the hospital is a public, or quasi public, entity, and that respondent has the right as a member of the corporation and as a licensed physician and surgeon to use the physical facilities of the hospital in the practice of his profession.

The bill of complaint then alleges in great detail the qualifications of the respondent: that he graduated from the University of Virginia with a degree of Doctor of Medicine; served one year apprenticeship at the United States Naval Hospital, Chelsea, Massachusetts, where he assisted in a number of major surgical operations; spent approximately 18 months on a tour of duty in the Pacific Theatre of Operation during the Japanese-American War, and claims to have performed approximately 200 major surgical operations; he was a resident in surgery, pathology and gynecology; that he passed the oral, written and practical examination and was made a Fellow of the Royal College of Surgeons in Canada; and that he passed the examination of the American Board of Surgery and was made Diplomate of that Board.

A motion to dismiss the bill of complaint was filed and was denied by an order of the Circuit Court. Thereafter a petition for writ of certiorari was filed in this Court to review the order of the Circuit Court denying petitioner's motion to dismiss the bill of complaint. At that time no answer had been filed and the facts with reference to the nature of the hospital, whether private or public, had not been fully developed. This Court denied the petition for writ of certiorari. In due course the petitioner filed a sworn answer. In the answer the question of whether or not the hospital was a private or a public entity, or enterprise, was squarely presented, including the question of whether or not the corporation had taken on a quasi public nature to such an extent that the laws relating to public hospitals should apply. The facts with reference to this question were undisputed. Thereafter the petitioner here filed a motion for a summary final decree with supporting affidavits. The Chancellor denied the motion for a summary final decree. Petition for certiorari was filed in this Court to review the order denying the motion for a summary final decree.

The important question to be determined is whether or not the petitioner, in the operation of the hospital in question, is a private corporation, not for profit, operating a private hospital, or is a public corporation, operating a public hospital.

If the petitioner, in the operation of the hospital, is a public corporation operating a public hospital, then the order denying the motion for summary final decree was correct and the cause should have proceeded to the taking of testimony on the various issues raised as to the qualifications of the respondent, and the action of the petitioner in withholding or denying the use of the physical facilities of the hospital to the respondent in performing major surgical operations upon his patients.

On the other hand, if the petitioner is a private corporation and was operating the hospital as a private hospital, then the order of the Chancellor in denying the motion for summary final decree was error, because the same rules and laws applicable to public hospitals do not apply to private hospitals with reference to the withdrawal, refusal or withholding of permission, or right, to practice surgery in such hospital or to use the physical facilities in such hospital in the performance of major surgical operations.

With reference to the organization, ownership, management and control of the corporation and the hospital, the facts are undisputed. The petitioner was organized as a corporation, not for profit, under the provisions of Chapter 617, F.S., F.S.A. Section 617.01, F.S., F.S.A., among other things, provides that the charter shall set forth the following:

'(2) The general nature of the object of the corporation.

'(3) The qualification of members and the manner of their admission.

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* * *

'(6) By what officers the affairs of the corporation are to be managed, and the times at which they will be elected or appointed.'

The charter strictly complied with the above provisions and contained the following:

'Second;--The general nature of the corporation, and its object and purpose shall be to construct, establish, maintain and operate a hospital for the care and treatment of persons in need of medical and surgical attention, upon such terms and conditions as to meet, if possible, the expense thereof, but without making profit therefrom, and also to establish and operate on like terms a school for the training of skilled nurses.

'Third:--Any person who shall pay the annual or other dues and charges which may from time to time be fixed by the by-laws, shall become and be a member of the Association. Admission shall upon such payment be granted by vote of the directors or executive committee.

'Sixth:--The affairs and business of the corporation shall be managed by a board of thirteen directors, to be elected by the members at their annual meeting in each year acting through a president, three or more vice-presidents, a secretary, a treasurer and such other officers, chosen by the directors, as they may from _____ to time provide for. When the board of directors in not in session, its powers shall be vested in and exercised by an executive committee, and such other committees as may from time to time be created and appointed. All committees shall be appointed by the board of directors, and the size and duties of each of said committees shall be fixed and may from time to time be changed by said board.'

Various committees were organized and appointed under the general supervision of the Board of Directors of the corporation. It is urged on behalf of the respondent that the fact that the City of Clearwater has contributed various amounts of taxpayers' money from the very beginning to acquire, operate and enlarge the hospital, together with the fact that the County of Pinellas pays bills rendered to the County Commissioners for services rendered to the indigent of the County, and with the further admitted fact that the petitioner has received various amounts from the United Community Fund and from the public generally, makes the hospital a public hospital.

The annual contributions from the City of Clearwater amount to approximately one percent. of the hospital's total annual operating revenue, and the amount contributed by the City for expansion amounted to only about one per cent. of the cost of such expansion. The County of Pinellas did nothing more than perform its duty in paying bills for the treatment or care of indigent patients who were citizens of Pinellas County. The County contributed nothing toward the building fund or expansion fund.

Such contributions from the City of Clearwater, or the payment of bills by the County of Pinellas, or the contribution by the United Community Fund, or the voluntary contributions from the public generally, to a private non-profit corporation for the purpose of enabling it to own, operate and improve a hospital, do not make such hospital a public institution.

The respondent contends that the fact that he has made a contribution and pledged other contributions to the petitioner not only makes him a member of the corporation but gives to him some kind of a special right, or privilege, as a practicing surgeon to use the physical...