Friday, June 22, 2007 12:01 AM CDT
Judge sides with Sarah Bush over Padgett
Physician assistant barred from local practice for almost another year
By NATHANIEL WEST, Staff Writer nwest@jg-tc.com
UPDATED: NEOGA — A judge this week agreed with Sarah Bush Lincoln Health Center that physician assistant David Padgett must not practice in or near Neoga for 11 more months.
Padgett — who was fired from the SBLHC Neoga Clinic in late 2005 but didn’t officially leave SBLHC’s employment until May 2006 — sued the Coles County hospital in a bid to overturn his contract’s “not-to-compete” covenant, which forbids him from working as a physician assistant within a 25-mile radius of Neoga for two years after the end of his relationship with SBLHC.
The two-day trial in the Padgett lawsuit concluded May 17 in Toledo, but Judge Steven Garst waited to issue a verdict until he received and considered written arguments about case law from attorneys on both sides.
In his opinion filed Tuesday and announced Thursday, Garst wrote, “The evidence showed that there was consideration for the employment agreement and terms contained therein.
“The covenant not-to-compete does not create a hardship on Padgett sufficient to vacate it.”
But SBLHC’s victory was not entirely a landslide. Garst also restructured the geographic limits in Padgett’s not-to-compete covenant, which originally stipulated that Padgett could not serve as a physician assistant within a full 60 miles of the hospital east of Mattoon.
“The restrictive covenant in this case should be reduced to a 25-mile radius around (the hospital), the Neoga Clinic, the Toledo Clinic and the Casey Clinic,” Garst wrote.
SBLHC officials said they are not too upset by this modification of Padgett’s contract. “The court felt that enforcement of the 25-mile limit was adequate to protect the hospital’s interest specific to Padgett,” said Patty Peterson, SBLHC spokeswoman.
“We still feel like it’s a big victory not only for us but for the community, so we can continue to provide health care there.”
SBLHC President and CEO Gary Barnett said, “We regret that this issue has detracted from the good works of Neoga, its residents and Sarah Bush Lincoln. We want to move forward and continue to provide health care to area residents through the Neoga Clinic.”
Neither Padgett nor his attorney returned calls Thursday.
Padgett testified in court that he eventually would set up a practice again in Neoga.
While SBLHC never offered an explanation for Padgett’s dismissal, both sides previously agreed SBLHC had the right to fire Padgett without cause, provided he was given a 180-day notice.
This notice came in November 2005, igniting an outcry from Padgett’s patients and other supporters throughout the region. Protesters picketed the Neoga Clinic, while a petition drive generated thousands of signatures.
In the end, Garst sided with SBLHC on each of the four arguments made by Padgett’s attorney, Steven Wakeman of Peoria.
Wakeman claimed the not-to-compete covenant violated the “public policy” of providing health care in rural, medically under-served areas.
However, Garst wrote, “To follow Padgett’s logic, if it is a health care shortage area, then all covenants not-to-compete for a medical provider who is employed in such an area would be void. The evidence introduced at trial does not support that proposition.”
Wakeman also argued the covenant limited the options of patients. But Garst countered, “Every time a change of medical provider occurs, it affects the choice of the patient, whether the medical provider voluntarily moves, voluntarily retires, becomes disabled or cannot practice based upon a covenant not-to-compete.
“Again, the burden of proof to establish that the covenant is injurious to the public welfare rested with Padgett. Padgett did not meet that burden.”
During the trial, Wakeman said the hospital’s “protectable interest” was lessened because Padgett is a physician assistant, not a doctor. Garst wrote, “Padgett, as a physician assistant, generated the same revenue stream as a physician (and) had the same contacts with patients as a physician.”
Wakeman contested the two-year and geographic limitations of the covenant. But apart from decreasing the restricted radius around the SBLHC hospital from 60 miles to 25 miles, Garst said, “The two-year time period is not unreasonable.”
Contact Nathaniel West at nwest@jg-tc.com or 238-6860.
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Anon wrote on Jun 21, 2007 1:34 PM: