Employed physician fails to show hospital ‘blemished’ his reputation

A central Indiana radiologist was not deprived of property when Tipton Hospital cancelled his medical privileges and the contract with his professional corporation, according to the 7th Circuit Court of Appeals.

William Babchuk M.D. sued the hospital and its parent, Indiana University Health, Inc., after his employment was terminated. The hospital claimed he delayed for more than a week in completing an ultrasound report on a pregnant woman who went to the emergency room for treatment.
Babchuk argued Tipton Hospital and IU Health had “blemished his medical license and, by extension, deprived him of his property when the medical institution reported the suspension to state and federal authorities.”

However, the 7th Circuit Court of Appeals noted Babchuk did not present any evidence that his career has been hindered by the hospital’s actions. Indeed the appellate panel asserted Babchuk went “way overboard” in claiming the suspending of his privileges had rendered his license “virtually worthless” and that he has been “blackballed” from future employment.

Even Babchuck’s attorney acknowledged at oral argument that his client is now a physician at Logansport Memorial Hospital. Moreover, that hospital’s website says Babchuk and his professional corporation occupy a suite at the hospital and are accepting new patients.

The 7th Circuit affirmed summary judgment in favor of the defendants in William I. Babchuk, et al. v. Indiana University Health, Inc. et al., 15-1816.


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