Babchuk v. IN Univ. Health, Inc

In 2003 Tipton Hospital awarded Babchuk medical staff privileges and gave his professional corporation an exclusive contract to provide radiology services. In 2012 Tipton cancelled both his medical privileges and his corporation’s contract. In Babchuk’s suit under 42 U.S.C. 1983, the district judge granted summary judgment in favor of all defendants, reasoning that the plaintiffs had failed to prove they had a federally protected property interest in Dr. Babchuk’s hospital privileges or in the contract between his professional corporation and the hospital. The Seventh Circuit affirmed, finding that the conduct of which Babchuk complained was not state action and, therefore, not actionable under 42 U.S.C. 1983. The fact that some of Tipton’s revenues are siphoned off to the state university that owns it does not make the hospital a state actor. The university may well exert pressure direct and indirect on Tipton, just as federal and state governments in manifold ways exert pressure on private institutions. “Government is omnipresent; that doesn’t make all employees of private entities state actors.“ View "Babchuk v. IN Univ. Health, Inc" on Justia Law