DR. MILTON S. MONYEK, M.D., APPELLANT,
v.
PARKWAY GENERAL HOSPITAL, INC., A FLORIDA CORPORATION, ET AL., APPELLEES
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Dr. Monyek appealed a summary judgment denying him hospital staff privileges at Parkway General Hospital. The Third District Court of Appeal affirmed the judgment, holding that the hospital was a private institution entitled to deny staff membership without a hearing, and that Medicare funding and a city land donation did not transform it into a public or quasi-public facility subject to judicial review.
The court held that Parkway General Hospital is a private institution capable of denying staff privileges at its discretion. The court affirmed that Medicare funding to patients and a municipal land donation with a reverter clause do not transform a privately-created and privately-controlled hospital into a public or quasi-public facility subject to judicial review.
[1] A hospital is considered a private facility when it is founded and maintained by private persons or a corporation, with no governmental voice in its management or control…
[2] Receipt of Medicare benefits by a significant portion of a hospital's patients does not, in itself, render the hospital a public or quasi-public institution.
Previewing 2 of 5 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“Private hospital. A private hospital is one founded and maintained by private persons or a corporation, the state or municipality having no voice in the management or control of its property or the formation of rules for its government.”
Establishes the controlling definition of a private hospital under Florida law, which focuses on private creation and control without governmental voice.
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceParkway General Hospital is a for-profit private corporation created and controlled by private physicians, with no governmental officers or employees …
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Appellant plaintiff seeks review of a final summary judgment entered in favor of the appellees holding that appellee hospital was a “private” facility capable of denying staff membership to a physician, the appellant, without a hearing or the necessity of informing the appellant of the reasons for the denial.
The sole issue for our consideration is whether the entry of summary judgment was proper in holding, as a matter of law, that appellee hospital was a “private” institution. The parties have raised no issue with the discretionary right of a private hospital to exclude or deny a physician the privilege to practice therein.1 We do note that some jurisdictions have departed from this view and have permitted judicial review of such private hospital policies and exclusions.2 However, the law of this state is settled in this regard and we are in concurrence with non-interference by the courts in the affairs of private organizations. Thus, the sole issue for us to determine is whether, as a matter of law, Parkway General Hospital is a private, public or quasi-public institution.
The facts of the instant case are substantially undisputed. Issue is taken with the trial judge’s interpretation of these facts. It is undisputed that Parkway General Hospital is a private corporation for profit under the laws of this state. No contention is made or appears of record that the funds for the construction of the *432initial facility came from any source other than private donations. The hospital corporation is controlled by a board of directors composed of private physicians and not officers or employees of any federal, state, county or municipal government. Operating expenses for the hospital do not directly come from any federal, county, state or local governmental entity. It does appear that approximately 50% of the patients in the hospital are recipients of Medicare benefits pursuant to 42 U.S.C.A. § 1395 et seq. These benefits are paid to the hospital through an intermediary, Florida Blue Cross-Blue Shield. The record shows that the City of North Miami Beach did enter into a contract to quit-claim certain rights-of-way to the hospital in order for the hospital to build an expansion. Within the contract, resolutions of the city council and quit-claim deed appears a re-verter provision whereby the property would revert to the city if construction of the expanded facilities was not commenced within three years. The hospital does maintain an emergency room open to the general public. These essential facts appear uncontradicted of record.
The appellant, a doctor denied privileges by the hospital,3 contends that the hospital is a public or quasi-public facility and could not deny him admission to practice at their discretion. In support of this position appellant cites three indicia of the public or quasi-public nature of the hospital: (1) the hospital expanded on land given to it by the City of North Miami Beach, the deed to which contained a reverter clause; (2) the hospital exists on federal funds; and (3) the hospital was created to serve the public and public policy demands that a physician be allowed to treat his patients in said hospital.
The Supreme Court of Florida defined the difference between a private and public hospital in the case of West Coast Hospital Ass’n v. Hoare, Fla.1953, 64 So.2d 293, a case almost identical to the one sub judice. The court stated; (64 So.2d at 296-297)
“ . . . The difference between a public and private hospital is now clearly established. In 41 C.J.S. Hospitals § 1, p. 332 it is stated:
“ ‘Private hospital. A private hospital is one founded and maintained by private persons or a corporation, the state or municipality having no voice in the management or control of its property or the formation of rules for its government.
“ 'Public hospital. A hospital created and endowed by the government for general charity is a public corporation; and a public hospital may be defined in general as an institution owned by the public and devoted chiefly to public uses and purposes.’ ”
In the case before us, it appears without contradiction that the hospital was created by private persons as a private profit making corporation and is solely controlled in its operation and policies by private parties, without any intervention by public officials. Thus, initially, the appellee hospital in the instant cause meets the definition of our Supreme Court as a “private” hospital.
The appellant, in the case at bar, contends that since 50% of the patients in the hospital receive Medicare benefits, and since part of the land used by the hospital was donated by the city, subject to a re-verter, the complexion of the hospital is now public or quasi-public. We cannot agree with this conclusion as a matter of law. We cannot say that the hospital exists on federal funds solely because a large percentage of the patients’ bills are paid indirectly by federal funds through the Medicare program. The Medicare program is not a direct subsidy to the hospital. The hospital does not bill the federal government. The monies are paid to Blue Cross-Blue Shield who then reimburses the hospital. To contend that the hospital is “public” due to coverage of its patients *433by Medicare would result, realistically, in finding that all hospitals in the country are now “public”. We are not of the opinion that this was the intent of the Medicare legislation. We note the language of 42 U.S.C.A. § 1395:
“Nothing in this subchapter shall be construed to authorize any Federal officer or employee to exercise any supervision or control over the practice of medicine or the manner in which medical services are provided, or over the selection, tenure, or compensation of any officer or employee of any institution, agency, or persons providing health services; or to exercise any supervision or control over the administration or operation of any such institution, agency, or person.”
The donation of certain lands to the hospital by the City of North Miami Beach, subject to reverter, does not, in and of itself, establish the hospital as a public or quasi-public institution. As was noted in the Hoare case, supra, the determinative factor in distinguishing between a public and private facility is the element of governmental control. The reverter clause contained in the deed to the hospital imports no element of governmental control of the hospital by the municipality since that provision is only effective if the expansion is not commenced within three years. After commencement of the facility within the time period provided the city’s rights to the property are forever terminated, whether or not the facility remains a hospital and notwithstanding the nature of the policies practiced by the hospital.
The third contention of the appellant is that public policy demands the conclusion that the hospital is a public or quasi-public institution. We find this contention to be without merit.
Therefore, for the reasons stated and upon the authorities cited and discussed, the judgment appealed is hereby affirmed.
Affirmed.
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Lake Hosp. & Clinic, Inc. v. Norman Silversmith, M.D., 551 So. 2d 538 (Fla. 4th DCA 1989)…volvement did not rise to the level of “state action,” then due process guarantees were found not to be applicable. See Moles v. White, 336 So. 2d 427 (Fla. 2d DCA 1976), cert. dism., 355 So. 2d 516 (Fla.1978); Monyek v. Parkway General Hosp., Inc., 273 So. 2d 430 (Fla. 3d DCA 1973). One court, however, held that a physician could claim a violation of due process against a private hospital upon the termination of his staff privileges if such privileges were explicitly protected by the hospital’s own bylaws.…
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Stanley S. Moles, M.D., P.A. v. White, 336 So. 2d 427 (Fla. 2d DCA 1976)…ese facilities. In the meantime, our Florida courts are continuing to distinguish between public and private hospitals. Cf. North Broward Hospital Dist. v. Mizell, Fla. 1962, 148 So. 2d 1; Monyek v. Parkway General Hospital, Inc,, Fla.App.3d, 1973, 273 So. 2d 430; Burris v. Morton F. Plant Hospital, Fla.App.2d, 1967, 204 So. 2d 521. See 40 Am.Jur.2d, Hospitals and Asylums § 26 (1968, Supp.1975); 41 C.J.S. Hospitals § 3 (1948, Supp.1975). Although the complaint alleges in general terms comprehensive and persu…
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Schwartz v. GEICO Gen. Ins. Co., 712 So. 2d 773 (Fla. 4th DCA 1998)…owed by the government for general charity is a public corporation; and a public hospital may be defined in general as an institution owned by the public and devoted chiefly to public uses and purposes.” See also Monyek v. Parkway Gen. Hosp., Inc., 273 So. 2d 430 (Fla. 3d DCA 1973). In Hoare the hospital, like the hospital in the present case, was not owned by the government or the public. Also, like the hospital in the present case, the hospital in Hoare had a relationship with local governments, having re…
Authorities Cited
- W. Coast Hosp. Ass'n v. Hoare, 64 So. 2d 293 (Fla. 1953)