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SHRM HR News
(Society For Human Resource Management)
March 14, 2008
7th Circuit: ADA Prohibits Association Discrimination Against Employees
By Maria Greco DanaherThe 7th U.S. Circuit Court of Appeals reversed the dismissal of a nurse's claim of association discrimination against a hospital in an Americans with Disabilities Act (ADA) lawsuit.
The nurse claimed that a self-insured hospital fired her because it viewed the cost of her husband's cancer treatment as inordinately high. The 7th Circuit's decision will allow the claim to go forward to a jury.
Phillis Dewitt, a registered nurse, was hired by Proctor Hospital in Peoria, Ill., in September 2001. After working on an as-needed basis for a month, Dewitt was promoted to the position of clinical manager, where she supervised nurses and other hospital staff members. Mary Jane Davis, Dewitt's supervisor, rated Dewitt's performance as "outstanding."
Dewitt and her husband were covered under Proctor's health insurance plan, which was largely self-funded-the hospital paid for members' covered medical costs up to $250,000 each year, with costs in excess of that amount covered by the Standard Security Life Insurance Co. of New York. Throughout Dewitt's employment at the hospital, Dewitt's husband, Anthony, suffered from prostate cancer. His medical treatment was continuous and expensive and was paid for through the hospital's self-coverage.
Proctor reviewed medical coverage costs periodically and documented medical claims in quarterly "stop-loss" reports, which listed all employees whose medical claims had exceeded $25,000 within the quarter. Dewitt's claims were listed on reports in 2003, 2004 and 2005.
In September 2004, Dewitt was confronted by Davis, who told her that a committee was reviewing Anthony's medical expenses, which the hospital felt were unusually high; Davis then asked Dewitt about the type of treatment being received by Anthony for his cancer. When Dewitt responded that her husband received both chemotherapy and radiation, Davis asked whether she had considered hospice care, a less expensive alternative.
Dewitt responded that her husband's doctor considered hospice care to be premature. In February 2005, Davis again raised the treatment issue with Dewitt and was told that Anthony's status had not changed.
At a meeting of clinical managers in May 2005, Davis informed employees that the hospital was facing financial troubles and would take "creative" efforts to cut costs. On Aug. 3, 2005, Dewitt was fired and was designated as "ineligible for rehire." The hospital continued to provide medical benefits through the end of August; after that, Dewitt paid for COBRA coverage. Anthony Dewitt died on Aug. 6, 2006.
Dewitt filed a lawsuit against Proctor, alleging age, gender and disability discrimination claims. The district court granted summary judgment to the hospital on all three claims. On appeal, the 7th Circuit upheld the dismissal of the age and gender claims, but reversed as to the ADA claim, finding a factual dispute on the issue of whether the hospital's action was based on "association discrimination." The 7th Circuit found that association discrimination may have motivated Proctor to fire Dewitt and that a jury should be allowed to decide the claim.
While Dewitt's case seems compelling, the concurring opinion by Judge Posner raises an interesting issue, and one that may have changed the outcome of the case. Posner pointed out that the hospital failed to produce any evidence of a nondiscriminatory reason for terminating Dewitt. If, in fact, that information had been available to the court, it may have allowed the case to be reviewed under the often used "shifting burden" analysis. Had the hospital been able to provide a legitimate business reason for Dewitt's termination, the burden would have shifted back to Dewitt to prove that the proffered reason was simply a pretext for discrimination.
Dewitt v. Proctor Hospital, 7th Cir., No. 07-1957 (Feb. 27, 2008). Professional Pointer: This case is an example of why complete and objective documentation is critical as a basis for employment decisions.
Maria Greco Danaher is an attorney with the firm of Ogletree Deakins in Pittsburgh.
Source: SHRM.org (SHRM is a membership organization and access to articles, etc. requires a membership subscription. More information about SHRMs programs and benefits can be found on their website at www.shrm.org)