The United States District Court for the Southern District of New York recently granted MCB’s motion for summary judgment dismissing a whistleblower lawsuit in favor of an MCB hospital client. The former hospital department head claimed he was terminated because of his complaints about alleged patient care problems. The Court rejected the department head’s whistleblower claim and instead found that the Hospital terminated the Plaintiff after it made a business decision to eliminate his entire department.
The case required the Court’s interpretation of Section 741 of the New York Labor Law, which specifically creates a legal cause of action for healthcare employee whistleblowers. To date, there have been few reported decisions under this statute and, therefore, MCB’s victory in this case is likely to serve as a useful precedent for other healthcare employers.