Parungao v. Community Health Systems, Inc.

by
Dr. Parungao began practicing surgery at Galesburg Cottage Hospital in 2006. He accepted employment with Knox Clinic, which supplies doctors for the hospital. Knox told Dr. Parungao in 2013 that it was discharging him without cause, as allowed under his employment agreement. Parungao believes that the hospital orchestrated this discharge to harm his career. He asserts that before Knox fired him, the hospital’s medical executive committee manipulated the peer-review process to insinuate that he had performance problems and make it difficult for him to secure future employment. Parungao later resigned from Galesburg and sought other employment, but alleges that he was thwarted in those efforts by the hospital and its doctors. Based on those events, Parungao filed a suit against the hospital that he voluntarily dismissed, was denied permission to refile the case under seal with a fictitious name, then filed another state court suit against the chief of medical staff, Piper for defamation. The Piper suit was dismissed for failure to state a claim. Parungao’s federal suit against the hospital was subsequently dismissed as barred by res judicata. The Seventh Circuit affirmed. Although the federal suit did not mention Piper, the elements of privity, identity of causes of action, and finality were met. View "Parungao v. Community Health Systems, Inc." on Justia Law