South Dakota Judge Rules On Hospital Medical Malpractice Liability

by Martin Arguello

A South Dakota circuit court judge ruled that hospitals could be targeted for medical malpractice liability lawsuits if they employ doctors who have acted in bad faith. Judge Bruce Anderson also ruled that hospital committee members who grant privileges to doctors can also be sued under the state’s medical malpractice liability laws. The ruling allows patients who have been injured by a doctor’s medical malpractice to sue the hospitals where those doctors practiced, as well as pursuing individual lawsuits against the committee members who hired them.

Details of the Medical Malpractice Liability Ruling

The medical malpractice liability ruling stemmed from a case involving a South Dakota spinal surgeon. At least 30 plaintiffs sued Dr. Allen Sossan for medical malpractice due to problems with their spinal surgeries. The patients also filed medical malpractice liability lawsuits against Lewis & Clark Specialty Hospital and Avera Sacred Heart Hospital, both of which allowed Dr. Sossan the privilege of performing spinal surgeries. Dr. Sossan was one of the doctor owners at Lewis & Clark, and he was also credentialed to perform surgeries at Avera Sacred Heart.

Medical Malpractice Liability Lawsuits Target Committees

Judge Anderson stated that the hospitals and the credentialing committee members can be targeted for medical malpractice liability lawsuits on the grounds of “negligent credentialing.” The patients’ medical malpractice liability lawsuits allege that the hospitals and committee members failed to evaluate Dr. Sossan’s credentials for performing expensive spinal surgeries. Instead, the lawsuits claim, the hospitals accepted Dr. Sossan based on the revenue that his procedures brought to the hospitals.

Medical Malpractice Liability and Credentialing

The medical malpractice liability ruling also stated that the peer review process that grants doctors their credentials need not be privileged information. Plaintiffs attorneys have argued that the confidentiality of the credentialing process denies victims the right to use the peer review information in their medical malpractice liability lawsuits. Judge Anderson ruled that the peer review privilege for medical professionals should have the same exceptions for crime and fraud as spousal and attorney-client privilege.

Medical Malpractice Liability Ruling Cites Community Obligations

Judge Anderson also stated that the committee members who decide to grant privileges to surgeons “owe a substantial and important fiduciary obligation to the entire community.” He also stated that violations of this privilege can make them targets of medical malpractice liability lawsuits. A Sioux Falls attorney told reporters that peer review information had previously been an “insurmountable barrier” in medical malpractice liability lawsuits and that the judge’s decision was “one of the most well-researched and well-reasoned judicial decisions I have read.”

Source: Sioux Falls Argus-Leader

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NOTE: This post is a news story and does not imply an endorsement of Arguello Law Firm by any of the parties mentioned herein.

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