Doctor fails to prove wrongful termination

In the Courts. Aug. 13, 2001.

A federal appeals court recently upheld a lower court ruling that a female physician failed to prove allegations that a hospital discriminated against her when it terminated her contract in 1998.

Pamela Clay, MD, sued Chicago-based Holy Cross Hospital in United States District Court for the Northern District of Illinois, claiming the hospital terminated her because she was pregnant -- a violation of her rights under the Family and Medical Leave Act and Title VII of the Civil Rights Act.

However, the district court found that Dr. Clay failed to show the hospital's reason for her termination was a pretext for discrimination, and the appellate court agreed.

Dr. Clay was hired by the hospital in June 1996 as part of its plan, instituted in 1992, to create a Neighborhood Affiliate Network of primary care physicians who would practice in offices in the community surrounding the hospital. The hospital's strategy was to subsidize the network of physicians with guaranteed salaries until their practices matured into profitable enterprises and they no longer needed the hospital's subsidy.

The network's daily operations were managed by a practice management department. From the network's creation, physicians were told that they were expected to "hustle" to build a profitable practice, because at some point they would be on their own.

Dr. Clay, a pediatrician, was hired to work at the Ford City Neighborhood Affiliate. She signed a contract at an initial salary of $100,000.

The contract allowed either Dr. Clay or the hospital to terminate the employment relationship with 90 days' notice. [...]