Pathmanathan v Healthscope Operations Pty Ltd
[2020] FCA 65
At a glance
Source factsCourt
Federal Court of Australia
Decision date
2020-02-06
Before
Steward J
Source
Original judgment source is linked above.
Judgment (21 paragraphs)
Background 23 I now turn to a chronology of the events that culminated in the commencement of this proceeding. The facts are drawn from documentary evidence which was not seriously challenged save for where I specifically note that the parties are in dispute. 24 At the relevant time, the Doctor was an accredited medical practitioner in Western Australia across several hospitals owned and operated by different entities. 25 On or around 7 November 2011, the Doctor applied for accreditation at Mount Hospital in order to obtain authorisation to treat patients at that hospital. In making that application, the Doctor acknowledged that she had received a copy of the By-Laws and agreed to abide by them. Additionally, she acknowledged that Mount Hospital's General Manager(s), its officers and the Medical Advisory Committee(s) and its/their Credentials Committee(s) could seek information about her "past experience, clinical performance, current fitness and current insurance/indemnity status". 26 On 9 November 2011, Ms Jade Phelan, the then general manager of Mount Hospital, advised the Doctor by letter that she had been granted temporary accreditation in a particular area of specialisation, subject to her signing and returning a copy of the letter as confirmation of her acceptance and agreement to abide by the By-Laws. The Doctor signed the letter and then returned it to Ms Phelan. 27 On 24 February 2012, Ms Phelan advised the Doctor by letter that she had been granted permanent accreditation at Mount Hospital. The letter similarly required the Doctor to confirm her acceptance and agreement to abide by the By-Laws. It is undisputed that she accordingly did so. 28 The aforementioned By-Laws (adopted on 1 July 2012) form an important plank of the Doctor's claims. It is common ground that the By-Laws played a significant role in governing the relationship between the parties. The legal characterisation of the By-Laws is, however, a matter of controversy. 29 The By-Laws are set out in a lengthy document. The "Foreword" to the By-Laws relevantly provides: The Healthscope Limited Hospital By-Laws are the formal expression of the relationship between the accredited health professionals and the hospital … The relationship between Healthscope Hospitals and accredited doctors is based on mutual recognition of, respect for and support for each other's clinical and commercial objectives. 30 In amplification, the document states: What are these By-Laws? 3 These By-Laws are created by Healthscope Limited [ACN 006 405 152, now named "Healthscope Operations Pty Ltd"] to assist in understanding some important current policies of its Board of Directors. They indicate how those policies are proposed to be carried into effect by the Healthscope Company that owns or operates each Healthscope Hospital, and in particular, by the General Manager of each hospital. 4 These By-Laws are intended by Healthscope Limited to be adopted by every Healthscope Company that owns or operates a Healthscope Hospital. 5 These By-Laws are intended for use by both Healthscope Company employees and also by Health Practitioners who are accredited with respect to a Healthscope Hospital. … What are the purposes of these By-laws? 9 These By-Laws have many purposes. Specifically they: 9.1 serve to maintain and improve the safety and quality of the delivery of hospital services; 9.2 protect Healthscope Hospitals and their Accredited Health Practitioners by ensuring that the environment in which hospital and medical services are delivered supports and facilitates both safety and quality; 9.3 define the relationship between a Healthscope Hospital and its Accredited Health Practitioners and serve to clarify the mutual prerogatives and obligations of those parties; and 9.4 assist in compliance with Commonwealth and State laws, regulations and standards … What do the By-Laws contain? … 11 These By-Laws contain policies on the following: 11.1 the terms and conditions on which Health Practitioners will be accredited; 11.2 the processes that lead to Accreditation and defining the 'Scope of Practice' of Accredited Health Practitioners; 11.3 the role of the Medical Advisory Committee and its sub-committees in the processes of Accreditation at Healthscope Hospitals; 11.4 the administrative and clinical responsibilities of Accredited Health Practitioners. 31 I note at this point that neither party asserted that the relationship between Healthscope and the Doctor was one of employer and employee.