Opinion ID: 2023864
Heading Depth: 1
Heading Rank: 5

Heading: Hospital Employment of Physicians

Text: The Health Center and its supporting amici curiae contend that no judicial determination exists which prohibits hospitals from employing physicians. In support of this contention, the Health Center argues that this court has acknowledged the legitimacy of such employment practices in past decisions. See, e.g., Gilbert v. Sycamore Municipal Hospital, 156 Ill.2d 511, 190 Ill.Dec. 758, 622 N.E.2d 788 (1993); Darling v. Charleston Community Memorial Hospital, 33 Ill.2d 326, 211 N.E.2d 253 (1965). In the alternative, the Health Center contends that if a judicial prohibition on hospital employment of physicians does exist, it should be overruled. In support of this contention, the Health Center argues that the public policies behind such a prohibition are inapplicable to licensed hospitals, particularly nonprofit hospitals. The Health Center also contends that there is no statutory prohibition on the corporate employment of physicians. The Health Center notes that no statute has ever expressly stated that physicians cannot be employed by corporations. To the contrary, the Health Center argues that other legislative actions recognize that hospitals can indeed employ physicians. See, e.g., 210 ILCS 70/0.01 et seq. (West 1994) (Emergency Medical Treatment Act); 225 ILCS 62/1 et seq. (West 1994) (Osteopathic and Allopathic Healthcare Discrimination Act). Dr. Berlin and supporting amici curiae contend that this court, in People ex rel. Kerner v. United Medical Service, Inc., 362 Ill. 442, 200 N.E. 157 (1936), adopted the corporate practice of medicine doctrine, which prohibits corporations from employing physicians. Dr. Berlin concludes that the Health Center, as a nonprofit corporation, is prohibited by the Kerner rule from entering into employment agreements with physicians. Dr. Berlin also disputes the Health Center's contention that public policy supports creating an exception to the Kerner rule for hospitals. He argues that, because no legislative enactment subsequent to the Kerner case expressly grants hospitals the authority to employ physicians, the legislature has ratified the corporate practice of medicine doctrine as the public policy of Illinois. At this point, a review of the corporate practice of medicine doctrine is appropriate.