Davis v. Phoebe Health Sys. Inc.

The plaintiffs, uninsured patients, lacked standing to sue under a lease agreement between the county hospital authority and the hospital because they were not third party beneficiaries of that agreement.

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Named plaintiffs Shawn Davis, Tamala Dupree, Ann Holland and Brian Covington appeal from the trial court’s decision dismissing their class action complaint against appellees Phoebe Putney Health Systems, Inc. and Phoebe Putney Memorial Hospital, Inc. collectively, “Phoebe”. The complaint alleged breach of contract claims based on the lease agreement between the Hospital Authority of Albany-Dougherty County and Phoebe, and the Patient Consent Forms between appellants and Phoebe. For the reasons that follow, we affirm. On July 23, 2004, appellants filed the instant lawsuit against Phoebe, seeking damages and equitable relief as representatives of a class of all uninsured patients of Phoebe who were charged for medical care at rates exceeding the rates charged to insured patients or those with Medicaid or Medicare coverage. Thereafter, appellants amended their complaint to raise the same essential allegations under other causes of action. Phoebe filed an answer and motions to dismiss for failure to state a claim upon which relief can be granted.

On May 18, 2005, approximately one week before the trial court’s motion hearing, appellants filed their second amended class action complaint. The second amended complaint withdrew the allegations of the first amended complaint, and instead asserted two breach of contract claims counts 1 and 2 based upon the lease agreement between the Hospital Authority of Albany-Dougherty County and Phoebe, which granted Phoebe control and operation of the hospital. The second amended complaint also asserted claims for breach of good faith and fair dealing and breach of implied obligation to charge a reasonable price based upon the express Patient Consent Form between appellants and Phoebe counts 3 and 4.

Davis v. Phoebe Health Sys. Inc.

The plaintiffs, uninsured patients, lacked standing to sue under a lease agreement between the county hospital authority and the hospital because they were not third party beneficiaries of that agreement.

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