NEONATOLOGY ASSOCIATES, LTD. V. PHOENIX PERINATAL ASSOCIATES INC.
164 P.3d 691 (2007)
NATURE OF THE CASE: Neonatology (P) appealed a summary judgment for Phoenix (D) in P's
suit alleging that D's practice of referring patients out-of-network to its own
neonatologists rather than to P constituted interference with P's contractual relationship
with relevant health plans.
FACTS: Obstetrix perinatologists were formerly employed by D, which was also an
in-network provider for at least some of the relevant plans. Before Obstetrix Medical Group
was formed, D physicians typically referred their patient-members of the relevant plans
whose babies needed neonatal care to P physicians. Since forming Obstetrix Medical Group,
however, they have referred their patients to Obstetrix neonatologists, who have treated the
patients without compensation if the patients' plans refused to pay for Obstetrix neonatal
services. P sued Obstetrix, alleging that Obstetrix's practice of referring patients
out-of-network to its own neonatologists rather than to P physicians constitutes
interference with Ps contractual relationship with the relevant plans and unfair
competition. Obstetrix filed a motion for summary judgment that the trial court granted, and
P timely appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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