Dr. W. O. Cowan v. Clovis Gibson

The appellant, Dr. W. O. Cowan, was denied reinstatement to the medical staff of the Lockwood Memorial Hospital Association,
the only hospital in Dade County, and, alleging a wrongful conspiracy to exclude him and to injure him in the practice of
medicine, sought in this action in two counts actual and punitive damages totaling $350,000 and a declaratory judgment as
to his rights and status. The respondents are the hospital, the seven individual members of its board of directors and Dr.
Lee A. McNeel, Jr., and Dr. Harold A. Bauer, who together with Dr. Cowan are the only doctors of medicine in the county. And
Drs. McNeel and Bauer now comprise the medical staff of the hospital. The trial court sustained the defendants' motion to
dismiss both counts of the petition for the reason that they "fail to state facts upon which relief may be granted" and Dr.
Cowan has appealed from the final judgment dismissing his action. Dr. Cowan graduated from St. Louis University School of Medicine in 1930 and for 20 years has practiced in Greenfield and
surrounding area and treated his patients in and was a member of the staff of the hospital. In 1963, allegedly without just
cause or reason, Dr. Cowan's application for reinstatement to the medical staff of the hospital was denied precipitating this
action. The hospital is a non-profit, tax-exempt, private institution licensed by the state and, as stated, is the only hospital
in Dade County. Since the hospital is a private institution (as contrasted with a governmental agency) and the other respondents
comprise its staff and board of directors it is not necessary to further detail its operation and support. Because it is a
private hospital "it is generally held that the exclusion of a physician or surgeon from practicing therein is a matter which
rests in the discretion of the managing authorities." Annotation 24 A.L.R.2d 850, 852, and the cases there collected, and
since the annotation Shulman v. Washington Hospital Center, 222 F.Supp. 59; Glass v. Doctors Hospital, 213 Md. 44, 131 Atl.2d
254; Khoury v. Community Memorial Hospital, 203 Va. 236, 123 S.E.2d 533. In view of this admittedly applicable general rule
the problem upon this appeal is whether, construing the appellant's petition as it must be viewed upon a motion to dismiss
(Royster v. Baker, Mo., 365 S.W.2d 496, 500), there are any allegations which would prima facie remove the cause from the
operation of the general rule and therefore entitle him to a hearing of the cause upon its merits.