Stears v. Sheridan County Mem'l Hosp. Bd. of Trustees, No. 05-8092 (10th Cir. June 27, 2007)

The Tenth Circuit Court of Appeals affirmed a lower court's grant of summary judgment in favor of a hospital, holding that a physician who retained his medical staff privileges was not deprived of a protected property interest when the hospital closed its radiology department to him. Accordingly, the hospital's action did not constitute a due process violation under 42 U.S.C. §1983. Additionally, the hospital did not violate the terms of its bylaws by entering into an exclusive contract with another radiologist without providing the physician notice and a hearing, because the hospital did not reduce the physician's privileges. The court also held that, because the physician's privileges were not affected, the hospital did not violate a Wyoming antidiscrimination statute providing that public hospitals shall be open to practice to various types of licensed physicians.

The physician, who previously had been the hospital's exclusive provider of radiology services, was denied access to its radiology department after he terminated his contract with the hospital and the hospital entered into a new exclusive contract with another provider. In his suit, the physician alleged that when the hospital entered into an exclusive contract with another provider, he was deprived of his clinical privileges, a right he claimed was preserved under 42 U.S.C. §1983, hospital bylaws, and Wyoming state law.