Central Kansas Medical Center v. HatesohlAnnotate this Case
The Supreme Court reversed the decision of the court of appeals reversing the district court’s grant of summary judgment for Defendants in this contract dispute, holding that the district court correctly found that the contract at issue violated the corporate practice of medicine doctrine and was therefore unenforceable.
Central Kansas Medical Center (CKMC) contracted with Dr. Stanley Hatesohl to provide family medicine services. The contract contained several postemployment covenants. Two years later, Plaintiff resigned and began practice family medicine at Great Bend Regional Hospital’s (GBRH) Central Kansas Family Practice (CKFP) clinic. CKMC sued Hatesohl for violating the postemployment covenants and GBRH and CKFP for tortiously interfering with the contract. The district court granted summary judgment for Defendants on the basis of the corporate practice of medicine doctrine, which forbids a corporation from hiring a physician to practice medicine that the corporation itself is not licensed to provide. The court of appeals reversed. The Supreme Court reversed, holding that the contract between Hatesohl and CKMC violated the corporate practice of medicine doctrine.