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A state district judge in Harris County on Friday essentially upheld a jury award of more than $6 million to a Houston heart surgeon who claimed Memorial Hermann Health System defamed his reputation in an effort to protect its business from other hospitals and competitors.
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State District Judge Daryl L. Moore issued his decision Friday morning in a case closely watched by the health care industry after a jury found Memorial Hermann acted with malice by making false statements about the surgical competence of Miguel Gomez III.
“It’s good news,” said Houston trial lawyer Mike Doyle who represents Gomez. “It should put an end to the claims by Memorial Hermann that they are allowed to do this to any doctor.”
Memorial Hermann declined to comment on the final judgment. After the jury verdict, the hospital said its purpose was not to hurt Gomez, but to improve patient safety.
The jury issued a verdict of $6.4 million for Gomez in March after a two-week trial. In his final judgment, Moore removed $500,000 in exemplary damages -the type of damages typically awarded when acts are malicious or grossly reckless - because the jury did not reach a unanimous verdict on whether Memorial Hermann acted with malice. But Moore added pre-judgment interest of $439,000, dating back to 2012 when the lawsuit was filed. Interest will continue to mount at a rate of 5 percent per year until the judgment is paid, according to the order.
Memorial Hermann asked Moore to reduce the award to no more than $3.4 million because of “double counting” of damages, according to a request filed by the hospital. The jury awarded damages to both Gomez and his medical practice to compensate Gomez for the damage to his reputation and his practice for lost profits.
In a hearing last week, David Beck, the Houston trial lawyer representing Memorial Hermann, said that Gomez and his practice are one in the same and they shouldn’t each receive damages.
Memorial Hermann also argued it had free speech rights on matters of public safety and public concern such as physician competence.
Gomez, a one-time star at Memorial Hermann hospital until he decided to move his lucrative practice to Houston Methodist West, sued Memorial Hermann five years ago, alleging his former hospital launched a “whisper campaign” to smear his reputation to keep patients from following him to Methodist.
The case provided a glimpse into the fierce battle among hospitals for market share and what they will do to protect their turf. Independent doctors with admitting privileges are critical to hospitals because they provide a steady stream of patients. Specialists like Gomez, who perform procedures with high profit margins, are especially valuable. Hospitals fight hard to hold onto them.
Gomez’s case turned on peer review, a confidential process conducted by committees of physicians to weed out bad doctors. Gomez, however, alleged that Memorial Hermann misused the process, manipulating data on the outcome of his surgeries to suggest that his patients were more likely to die.
The jury decided after hearing evidence during the two-week trial that a remark from a Memorial Hermann employee about Gomez’s “bad quality, high mortality rates, unnecessary surgeries,” was false and damaged Gomez’s reputation, according to court records.
The jury also found another employee’s comment about the hospital’s decision to share Gomez’s peer review data with referring cardiologists in the name of safety and transparency to be false and defamatory.
The Gomez case was unusual because it made it to trial. Typically, disputes between hospitals and doctors are settled confidentially long before they get to a jury. That’s because such cases are difficult to bring in Texas, where the law allows doctors access to confidential peer review data only if they can show the process was used either to quash competition or discriminate.
Gomez’s case went all the way to the Texas Supreme Court, which determined in 2015 he had enough evidence to go forward and directed Memorial Hermann to provide confidential records.
A state district judge in Harris County on Friday essentially upheld a jury award of more than $6 million to a Houston heart surgeon who claimed Memorial Hermann Health System defamed his reputation in an effort to protect its business from other hospitals and competitors.
State District Judge Daryl L. Moore issued his decision Friday morning in a case closely watched by the health care industry after a jury found Memorial Hermann acted with malice by making false statements about the surgical competence of Miguel Gomez III.
“It’s good news,” said Houston trial lawyer Mike Doyle who represents Gomez. “It should put an end to the claims by Memorial Hermann that they are allowed to do this to any doctor.”
Memorial Hermann declined to comment on the final judgment. After the jury verdict, the hospital said its purpose was not to hurt Gomez, but to improve patient safety.
The jury issued a verdict of $6.4 million for Gomez in March after a two-week trial. In his final judgment, Moore removed $500,000 in exemplary damages -the type of damages typically awarded when acts are malicious or grossly reckless - because the jury did not reach a unanimous verdict on whether Memorial Hermann acted with malice. But Moore added pre-judgment interest of $439,000, dating back to 2012 when the lawsuit was filed. Interest will continue to mount at a rate of 5 percent per year until the judgment is paid, according to the order.
Memorial Hermann asked Moore to reduce the award to no more than $3.4 million because of “double counting” of damages, according to a request filed by the hospital. The jury awarded damages to both Gomez and his medical practice to compensate Gomez for the damage to his reputation and his practice for lost profits.
In a hearing last week, David Beck, the Houston trial lawyer representing Memorial Hermann, said that Gomez and his practice are one in the same and they shouldn’t each receive damages.
Memorial Hermann also argued it had free speech rights on matters of public safety and public concern such as physician competence.
Gomez, a one-time star at Memorial Hermann hospital until he decided to move his lucrative practice to Houston Methodist West, sued Memorial Hermann five years ago, alleging his former hospital launched a “whisper campaign” to smear his reputation to keep patients from following him to Methodist.
The case provided a glimpse into the fierce battle among hospitals for market share and what they will do to protect their turf. Independent doctors with admitting privileges are critical to hospitals because they provide a steady stream of patients. Specialists like Gomez, who perform procedures with high profit margins, are especially valuable. Hospitals fight hard to hold onto them.
Gomez Peer Review
Gomez’s case turned on peer review, a confidential process conducted by committees of physicians to weed out bad doctors. Gomez, however, alleged that Memorial Hermann misused the process, manipulating data on the outcome of his surgeries to suggest that his patients were more likely to die.
The jury decided after hearing evidence during the two-week trial that a remark from a Memorial Hermann employee about Gomez’s “bad quality, high mortality rates, unnecessary surgeries,” was false and damaged Gomez’s reputation, according to court records.
Gomez Peer Alternative
The jury also found another employee’s comment about the hospital’s decision to share Gomez’s peer review data with referring cardiologists in the name of safety and transparency to be false and defamatory.
The Gomez case was unusual because it made it to trial. Typically, disputes between hospitals and doctors are settled confidentially long before they get to a jury. That’s because such cases are difficult to bring in Texas, where the law allows doctors access to confidential peer review data only if they can show the process was used either to quash competition or discriminate.
Gomez Peer Alternative
Gomez’s case went all the way to the Texas Supreme Court, which determined in 2015 he had enough evidence to go forward and directed Memorial Hermann to provide confidential records.