Court Finds Physician’s Salary Can Be Recovered as Lost Profits
Following a successful challenge to the termination of his contract with a hospital, a radiologist oncologist sought damages. In calculating damages, the hospital tried to argue that the salary of the radiologist oncologist, who was the sole shareholder in the oncology service corporation, should be treated as an expense. Affirming the trial court decision, the appellate court concluded that treating the physician’s salary as an expense would effectively erase any recovery despite real financial loss. At the same time, the court upheld the ruling that the hospital could present evidence of mitigation to the jury in calculating damages. Radiation Oncology Servs. of Central New York v. Our Lady of Lourdes Mem’l Hosp.