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UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF TENNESSEE NASHVILLE DIVISION CHRISTEN HOEDT, M.D., ) ) Plaintiff, ) ) v. ) No. 3:24-cv-00310 ) VANDERBILT UNIVERSITY, et al., ) ) Defendants. ) MEMORANDUM OPINION Everyoneâphysicians includedâmakes mistakes. Acknowledging this, Dr. Robert Caplan wisely stated more than twenty years ago that â[t]he only way to improve patient safety . . . is to be open and honest about [medical] errors. You canât understand something you hide.â1 This critique rings true here, where Christen Hoedt, M.D. (âDr. Hoedtâ) brought this suit against Vanderbilt University (âVUâ), Vanderbilt University Medical Center (âVUMCâ), Rick W. Wright, M.D. (âDr. Wrightâ), Gregory G. Polkowski, M.D. (âDr. Polkowskiâ), and the United States Department of Health and Human Services (âHHSâ) after disputes arose between the parties about the quality of Dr. Hoedtâs medical care. Dr. Hoedt seeks judicial review under the 1 Dr. Caplan, as the then-head of quality and safety at Virginia Mason Medical Center, made this remark to The Seattle Times in 2004 after a patient at the facility, Mary McClinton, died following a medical error. See You Canât Understand Something You Hide: Transparency As A Path To Improve Patient Safety, Health Affairs Blog, https://www.healthaffairs.org/content/forefront/you- can-t-understand-something-you-hide-transparency-path-improve-patient-safety (last visited Sept. 8, 2025). Serving as a quintessential example of the power of public transparency, McClintonâs clinical team sought to learn from her unfortunate passing by investigating the error, disclosing it to her family and other hospital staff, and sharing their findings with other health professionals to ensure other patients would not be put at risk from similar mistakes. See id. Because McClintonâs team was so forthright and thorough in addressing the harm caused, her family received answers on her passing, and other professionals changed their procedures to protect their patients and ensure best practices moving forward. Administrative Procedure Act (âAPAâ), 5 U.S.C. §§ 701â06 et seq. of HHSâs determination that all of the reports filed by Vanderbilt Wilson County Hospital (âHospitalâ) about Dr. Hoedtâs clinical performance were compliant with the Health Care Quality Improvement Act (âHCQIAâ or âActâ). Before the Court are Dr. Hoedtâs and HHSâs cross-motions for summary judgment on that issue, which are fully briefed and ripe for review. (Doc. Nos. 71â73, 78â80, 84â86). For the following reasons, the Court will grant HHSâs Motion (Doc. No. 78) and deny Dr. Hoedtâs Motion (Doc. No. 71). I. REVIEW OF THE RECORD2 A. Applicable Statutes and Regulations The HCQIA âwas passed in 1986 to provide for effective peer review and interstate monitoring of incompetent physicians, and to grant qualified immunity from damages for those who participate in peer review activities.â Meyers v. Columbia/HCA Healthcare Corp., 341 F.3d 461, 467 (6th Cir. 2003) (citing Austin v. McNamara, 979 F.2d 728, 733 (9th Cir. 1992) and 42 U.S.C. § 11101). The Act also aims to âprovide incentive and protection for physicians engaging in effective professional peer review.â 42 U.S.C. § 11101(5). In furtherance of the Actâs objectives, Congress established the National Practitioner Data Bank (âNPDBâ or âData Bankâ) to manage the collection and dissemination of professional information on physician conduct.3 42 U.S.C. § 11134; 45 C.F.R. § 60.1. The HCQIA imposes 2 These factual findings come from the findings in the administrative record (Doc. No. 64), which are conclusive because they are supported by substantial evidence in the record. Wokojance v. Weinberger, 513 F.2d 210, 212 (6th Cir. 1975). 3 The Data Bank is used primarily as an alert system. U.S. Depât of Health & Human Servs., National Practitioner Data Bank Guidebook, at A-7 (2018), https://www.npdb.hrsa.gov/resources/NPDBGuidebook.pdf (âGuidebookâ) (âThe NPDB is primarily a flagging system that may serve to alert users that a more comprehensive review of the qualifications and background of a health care practitioner, entity, provider, or supplier may be reporting requirements on, among others, hospitals. 42 U.S.C. §§ 11131â34. The reporting requirement central to this case requires a health care entity to file a report with the Data Bank if it âtakes a professional review action that adversely affects the clinical privileges of a physician for a period longer than 30 days.â 42 U.S.C. § 11133(a)(1)(A). The Act defines a professional review action as: an action or recommendation of a professional review body which is taken or made in the conduct of professional review activity, which is based on the competence or professional conduct of an individual physician (which conduct affects or could affect adversely the health or welfare of a patient or patients), and which affects (or may affect) adversely the clinical privileges . . . of the physician. Id. § 11151(9); see also Guidebook, at E-38 (âA summary suspension is reportable if it is: (1) In effect or imposed for more than 30 days[;] (2) Based on the professional competence or professional conduct of the physician . . . that adversely affects, or could adversely affect, the health or welfare of a patient[; and] (3) The result of a professional review action taken by a hospital or other health care entity.â) (numbering added). âAdversely affecting,â as written in § 11151(9), is defined expansively to include âreducing, restricting, suspending, revoking, denying, or failing to renew clinical privileges or membership in a health care entity.â 42 U.S.C. § 11151(1). To ensure the reliability of reported information, âCongress directed the Secretary of the Department of Health & Human Services [(âSecretaryâ)] to promulgate regulations establishing âprocedures in the case of disputed accuracy of the informationââ filed with the Data Bank. Leal v. Secây, U.S. Depât of Health & Hum. Servs., 620 F.3d 1280, 1282 (11th Cir. 2010) (citing 42 U.S.C. § 11136(2)). âUnder those regulations, a physician who disputes the accuracy of a report prudentâ). The information in it âserve[s] as only an indicator of professional quality and not as conclusive or complete evidence of it.â 53 Fed. Reg. 9264, 9265 (Mar. 21, 1988); see also Guidebook, at A-7 (âNPDB information should not be used as the sole source of verification of professional credentialsâ). can seek Secretarial review[.]â Id.; see 45 C.F.R. § 60.16(c)(2). The Secretaryâs review is âlimited to having the report reviewed for accuracy of factual information and to ensure that the information was required to be reported.â Id. (citation and quotations omitted). Due to the limited scope of review, the Secretary will not review the merits of the hospitalâs professional review action, nor will it assess the due process the physician received related to the review action. 45 C.F.R. § 60.21(c)(1). B. Dr. Hoedtâs Suspension and Reinstatement Dr. Hoedt is an orthopedic surgeon who began practicing at the Hospital in June 2021. (Doc. No. 64 at 45). According to the Hospital, concerns about Dr. Hoedtâs quality of care arose soon after he started his work there. (Id. at 45, 47â53, 63â64). Those worries continued over the following months. (Id.). Specifically, the Hospital was concerned that Dr. Hoedt had a higher infection rate compared to his peers and the national average. (Id.). This led to questions about his surgical technique. (Id.). These issues came to a head when, on March 16, 2022, one of Dr. Hoedtâs patients died unexpectedly following a surgical procedure. (Id. at 45, 65, 70). The next day, the Hospital summarily suspended Dr. Hoedtâs clinical privileges. (Id. at 32, 45, 59, 70, 121). In a March 21, 2022 letter confirming Dr. Hoedtâs suspension, the Hospital informed him that the decision to suspend his privileges âwas reached by the [Hospital] Medical Executive Committee [(âMECâ)] following concerns expressed regarding the number of surgical revisions you perform, your surgical infection rate, and aspects of your surgical technique.â (Id. at 32). On March 31, 2022, the MEC met to discuss Dr. Hoedtâs suspension. (Id. at 59â60). During the meeting, an investigating committee presented the MEC with a PowerPoint presentation documenting concerns and issues related to Dr. Hoedtâs care. (Id. at 47â58, 60). After discussing âDr. Hoedtâs clinical performance including an increased volume of surgical site infections as well as patient safety, selection and management[,]â the MEC recommended permanently revoking Dr. Hoedtâs clinical privileges at the Hospital. (Id. at 60). In response, Dr. Hoedt requested a hearing to determine the justification for his summary suspension and the MECâs recommendation for the permanent revocation of his clinical privileges. (Id. at 45 (â[Dr.] Hoedt was informed of the recommendations and he requested a Fair Hearing.â)). On July 8, 2022, the Hospital filed a report with the NPDB about Dr. Hoedtâs suspension of clinical privileges at the Hospital (âReport #1â), stating: Dr. Hoedtâs clinical privileges and medical staff membership with Vanderbilt Wilson County Hospital were suspended for concerns regarding his clinical performance including an increased volume of surgical site infections and patient safety, selection, and management. The MEC continued the suspension and made a recommendation for the revocation of Dr. Hoedtâs clinical privileges. Dr. Hoedt timely requested a fair hearing to challenge the bases of the suspension and recommendation for revocation. The fair hearing proceedings are pending scheduling. (Id. at 7â8). The hearing requested by Dr. Hoedt on the rationale for his suspension and the MECâs recommendation of revocation of his clinical privileges was scheduled for September 13, 14, and 15, 2022. (Id. at 67). Instead of having the hearing, however, the Hospital and Dr. Hoedt engaged in a successful mediation of the issue. (Id. at 45â46). This resulted in a Settlement Agreement between the parties (id. at 138â41), requiring Dr. Hoedt to participate in a proctoring program that would commence âno later than September 26, 2022â and âend March 16, 2023.â (Id. at 138 ¶¶ 4â5). The parties further agreed that: Upon successful completion of the proctoring program as determined by VUMC, [the Hospital] will conclude the investigation, Dr. Hoedtâs full staff privileges at [the Hospital] shall be reinstated, and Dr. Hoedt will resign his medical staff privileges and membership at [the Hospital], and not later reapply. The resignation of Dr. Hoedt from the staff of [the Hospital] after completion of the proctoring and conclusion of the investigation shall not be a reportable event of the NPDB. (Id. at 138 ¶ 9). In the Settlement Agreement, the parties agreed that the Hospital would âsubmit a Revision-to-Action Report to the [NPDB] (Modification of Previous Action) that shall modify the adverse action previously reported to the NPDB by the Hospitalâ in Report #1. (Id. at 138 ¶ 6). The parties also agreed that the Hospital would submit the following language to the NPDB: Dr. Hoedt perfected his right to a fair hearing to challenge the bases for the prior adverse action and recommendations of the Vanderbilt Wilson County Medical Executive Committee: facts remain in dispute as to those bases. Dr. Hoedt exercised his due process rights by participating in mediation which resulted in the hospital requiring an agreed upon proctoring program at Vanderbilt University Medical Center to take place between September 26, 2022 and March 16, 2023. (Id.). Consistent with this, on September 12, 2022, the Hospital submitted a Revision-to-Action report to the NPDB as a âmodification of [the] previous actionâ on Dr. Hoedtâs suspension (âReport #2â). (Id. at 11). Report #2 contained the language the parties agreed to under the Settlement Agreement. (Id.). On October 2, 2022, the Hospital informed Dr. Hoedt that he completed his proctoring arrangement. (Id. at 33). At that time, the Hospital told Dr. Hoedt that his âprivileges at [the] Hospital are reinstated.â (Id.). After reinstatement of Dr. Hoedtâs clinical privileges, he inquired through the NPDB website on whether the Hospital was ârequired to update a NPDB report after reporting a physicianâs summary suspension when the suspension is lifted and his privileges are restored?â (Id. at 15). The NPDB responded that the action taken to summarily suspend privileges takes affect âwhen it is first imposed by the hospital officialâ and â[i]f the authorized committee or body vacates the summary suspension, the entity must void the previous report submitted to the NPDB.â (Id. at 16). Based on this, Dr. Hoedt, through mediation, tried to get the Hospital to void its prior NPDB reports indicating that Dr. Hoedt had been summarily suspended. (Id. at 34â 36). The Hospital did not engage with Dr. Hoedtâs request. (Id.). The Hospital filed another Revision-to-Action report on December 9, 2022 about Dr. Hoedt (âReport #3â).4 (Id. at 18). In that Report, the Hospital noted that âDr. Hoedt completed the agreed upon proctoring program.â (Id.). C. Dr. Hoedtâs Appeals Dr. Hoedt sought review of the accuracy and reportability of the Reports, per the NPDBâs administrative process described in 45 C.F.R. § 60.21. (Id. at 8, 11â12, 15â16, 18, 29â31). The NPDB elevated Dr. Hoedtâs challenge to the Reports to dispute resolution status on February 17, 2023. (Id. at 24). Dr. Hoedt argued that the Reports should be voided because: (1) Report #1 was inaccurate on the reason for Dr. Hoedtâs summary suspension; (2) Report #1 erroneously included the MECâs vote to recommend revocation of Dr. Hoedtâs privileges and the reasons for that vote, because his privileges were not revoked; (3) Report #1 was required to be voided after Dr. Hoedtâs summary suspension was âvacatedâ upon the reinstatement of his clinical privileges on October 2, 2022; (4) the proctoring arrangement outlined in Report #2 lasted only two weeks, making it not reportable and rendering Report #2 void; and (5) because Reports #1 and #2 are void, Report #3 should be as well, given that it only reports a modification to the prior Reports. (Id. at 11â12, 18, 29â34). The NPDB disagreed. On June 26, 2023, the NPDB issued three separate dispute resolution decisions, one for each Report. (Id. at 84â96). The first decision corresponds with the NPDBâs decision on Dr. Hoedtâs objections to Report #1. (Id. at 84). In Report #1, the NPDB characterized Dr. Hoedtâs suspension as relating to his surgical infection rate and aspects of his surgical technique. (Id. at 85). The NPDB rejected Dr. Hoedtâs other arguments on voiding Report #1, finding that Dr. Hoedtâs summary suspension was not vacated, but rather was lifted, such that 4 The Court will refer to Reports #1, #2, and #3 collectively as âReports.â the Hospital was not required to void Report #1. (Id. at 86). Based on this decision, the NPDB rejected Dr. Hoedtâs challenges to Reports #2 and #3, finding that the Hospital was required to update Report #1 as modifications to that action came about. (Id. at 89â91, 93â95). The NPDB further advised Dr. Hoedt that Report #2 was reportable as a modification of the initial summary suspension, making that his proctoring lasted under 30 days irrelevant. (Id. at 90â91). The NPDB informed Dr. Hoedt in its decisions that he could seek reconsideration of each. (Id. at 107â11). Dr. Hoedt sought reconsideration with HHS on July 6, 2023. (Id.). HHS rejected each of Dr. Hoedtâs appeals on January 10, 2024. (Id.). In doing so, HHS maintained that the Hospitalâs articulation of why Dr. Hoedtâs privileges were revoked was accurate. (Id. at 160). HHS also affirmed the determination that the difference between Dr. Hoedtâs suspension being lifted, rather than vacated, negated any right he had to voiding Report #1. (Id. at 161). Ultimately, HHS affirmed the decisions to maintain the Reports in full. (Id. at 158â73). Based on HHSâs final decisions, the Hospital did not void the Reports, and Dr. Hoedt initiated the instant action seeking judicial review of HHSâs reconsideration determination. (Id.; Doc. Nos. 1, 29). II. LEGAL STANDARD The parties each move for summary judgment. (Doc. Nos. 72, 79). However, as HHS correctly points out, because the cross-motions seek judicial review of an agency action under 5 U.S.C. §§ 701â06, the partiesâ motions are more appropriately categorized as motions for judgment on the administrative record. See Sierra Club v. Mainella, 459 F. Supp. 2d 76, 89 (D.D.C. 2006) (summary judgment standard âdoes not apply because of the limited role of a court in reviewing the administrative recordâ). Given this, the APA provides the standard of review, stating in relevant part: [T]he reviewing court shall . . . hold unlawful and set aside agency action, findings, and conclusions found to be . . . arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law . . . In making the foregoing determinations, the court shall review the whole record or those parts of it cited by a party, and due account shall be taken of the rule of prejudicial error. 5 U.S.C. § 706(2)(A). Because the facts have already been determined by the reviewing agency, âthe entire case on review is a question of law.â Am. Bioscience, Inc. v. Thompson, 269 F.3d 1077, 1083 (D.C. Cir. 2001). The ultimate question the Court must decide here is whether HHSâs agency action was arbitrary, capricious, an abuse of discretion, unsupported by substantial evidence in the case, without observance of procedure required by law, or not in accordance with the law. 5 U.S.C. §§ 706(2) et seq. Under this standard, âthe party challenging the agencyâs action must âshow that the action had no rational basis or that it involved a clear and prejudicial violation of applicable statutes or regulations.ââ Kroger Co. v. Regâl Airport Auth. of Louisville & Jefferson Cnty., 286 F.3d 382, 389 (6th Cir. 2002) (quoting McDonald Welding v. Webb, 829 F.2d 593, 595 (6th Cir. 1987)). An agency action is arbitrary and capricious if: the agency has relied on factors which Congress has not intended it to consider, entirely failed to consider an important aspect of the problem, offered an explanation for its decision that runs counter to the evidence before the agency, or is so implausible that it could not be ascribed to a difference in view or the product of agency expertise. Motor Vehicle Mfrs. Assân of U.S., Inc. v. State Farm Mut. Auto. Ins. Co., 463 U.S. 29, 43 (1983). The Courtâs review in this regard is âextremely narrow[,]â Oakbrook Land Holdings, LLC v. Commâr, 28 F.4th 700, 720 (6th Cir. 2022), because the Court âmay not substitute [its] own policy judgment for that of the agency.â Fed. Commcâns Commân v. Prometheus Radio Project, 592 U.S. 414, 423 (2021). Instead, the Court must âsimply ensure[] that the agency has acted within a zone of reasonableness and, in particular, has reasonably considered the relevant issues and reasonably explained [its] decision[s].â Id. Still, the Court âmust ensure that the agency considered each âimportant aspect of the problemâ and issued a decision rooted in the law and facts.â Kentucky v. U.S. Envât Prot. Agency, 123 F.4th 447, 468 (6th Cir. 2024) (quoting Motor Vehicle Mfrs. Assân of U.S., Inc. v. State Farm Mut. Auto. Ins. Co., 436 U.S. 29, 43 (1983)). Indeed, â[a]gency action is ânot in accordance with the lawâ when it is in conflict with the language of the statute [or regulation] relied upon by the agency.â City of Cleveland v. Ohio, 508 F.3d 827, 838 (6th Cir. 2007); see Marbury v. Madison, 5 U.S. 137, 177 (1803) (âIt is emphatically the province and duty of the [court] to say what the law is.â); see also 5 U.S.C. § 706 (âTo the extent necessary to decision and when presented, the reviewing court shall decide all relevant questions of law, interpret constitutional and statutory provisions, and determine the meaning or applicability of the terms of an agency action.â); Loper Bright Enters. v. Raimondo, 603 U.S. 369, 398, 412 (2024) (the APA requires courts, not agencies, to âdecide âall relevant questions of lawâ arising on review of agency actionâ and âmust exercise their independent judgment in deciding whether an agency has acted within its statutory authorityâ) (quoting 5 U.S.C. § 706). Considering this, where the statutory language at issue is ambiguous, agencies are entitled to deference over their rulings and informal interpretations of that language. Chao v. Occupational Safety & Health Rev. Commân, 540 F.3d 519, 526 (6th Cir. 2008). That deference is ânot controlling upon the courts[,]â but instead is evaluated based âupon the thoroughness evident in its consideration, the validity of its reasoning, its consistency with earlier and later pronouncements, and all those factors which give it power to persuade, if lacking power to control.â Skidmore v. Swift & Co., 323 U.S. 134, 140 (1944); see Loper Bright, 603 U.S. at 394 (affirming that Skidmore deference remains a tool that courts can use in evaluating ambiguous statutes). III. ANALYSIS Dr. Hoedt contends that he is entitled to judgment in his favor because HHS erred in three material ways in rejecting his appeals of the NPDBâs orders. First, the Guidebook instruction dictates Report #1 should be voided because his suspension ended; second, by not finding the factual inaccuracies in the Reports; and third, by failing to properly determine that the MECâs recommendation that Dr. Hoedtâs clinical privileges be permanently revoked is not a reportable event. HHS disagrees, reasoning that Dr. Hoedt bases his arguments on a flawed understanding of the scope of the Secretaryâs review and incorrect interpretations of relevant statutory and regulatory language. Instead, HHS asserts it is entitled to judgment on the record because the Secretaryâs decisions to uphold the NPDBâs rulings were well-reasoned, in accordance with the HCQIA statutory framework, and supported by the record. The Court will consider the partiesâ various arguments in turn. A. The Secretary Correctly Determined That the Hospital Lifting Dr. Hoedtâs Suspension Did Not Void the Reports. The Court starts with the partiesâ first, and most critical, dispute: whether the Guidebook mandates that Report #1 (and, by extension, Reports #2 and #3) must be voided because the Hospital ended Dr. Hoedtâs suspension after he completed his proctoring program. In evaluating that question, the Court starts by interpreting relevant portions of the Act and its implementing regulations. United States v. Coss, 677 F.3d 278, 283 (6th Cir. 2012) (âThe starting point for any question of statutory interpretation is the language of the statute itself.â) (citation and quotations omitted); Roberto v. Depât of the Navy, 440 F.3d 1341, 1350 (Fed. Cir. 2006) (âThe rules of statutory construction apply when interpreting an agency regulation.â); see Yates v. United States, 574 U.S. 528, 537 (2015) (âThe plainness or ambiguity of statutory language is determined [not only] by reference to the language itself, [but as well by] the specific context in which that language is used, and the broader context of the statute as a whole.â) (citation and quotations omitted). As HHS emphasizes, the Act delegated to it and the Secretary the responsibility to implement âprocedures in the case of disputed accuracy ofâ information in NPDB reports. 42 U.S.C. § 11136(2). To that end, under 45 C.F.R. § 60.21(c)(2)(iv), if the Secretary: Determines that the adverse action was not reportable and therefore should be removed from the NPDB, the Secretary will inform the subject and direct the NPDB to void the report. The NPDB will distribute a notice to previous queriers (where identifiable), the reporting entity and the subject of the report that the report has been voided. A plain reading of the regulations states that physicians may dispute information in reports with the Secretary, and if appropriate, a reporting entity must void a report if the Secretary determines that the adverse action was not reportable. Per 42 U.S.C. § 11133(a)(1)(A), the parties agree the Hospital was required to report Dr. Hoedtâs summary suspension. There is nothing in the administrative record suggesting that the Secretary told the Hospital to void Report #1 after Dr. Hoedtâs summary suspension ended because the suspension was no longer reportable. The Act and supporting regulations conclusively indicate that the Hospital ending Dr. Hoedtâs suspension has no bearing on the validity of Report #1. Id. Given that there is nothing in the Act or regulations providing for voiding reports under the circumstances presented, âthe judicial inquiry is completeâ and Dr. Hoedtâs argument fails.5 Desert Palace, Inc. v. Costa, 539 U.S. 90, 98 (2003) (citation and quotations omitted). 5 While the Court does not rely on the legislative history of the Act to reach this conclusion, it is worth noting that the purpose of the Actâwhich is, in part, to facilitate the âinterstate monitoring of incompetent physiciansââsupports a finding that reports are not void merely because a physician subject to an adverse action completed further medical training post-report. See Meyers, 341 F.3d at 467. Seeking to overcome this, Dr. Hoedt relies on the Guidebookâs commentary on proper circumstances for reporting entities to void reports to demonstrate such action is appropriate here. This is in error. The unambiguous statutory and regulatory language leaves little room for HHSâs interpretation of this legal landscape. See supra, Section II. Nonetheless, for the sake of thoroughness, the Court will briefly address Dr. Hoedtâs argument on the merits. The Guidebook instructs that reports should be voided or modified under three circumstances. Under the first, â[i]f the summary suspension ultimately does not last more than 30 days,â the suspension is not reportable under the Act and âthe report must be voided.â Guidebook, at E-38; see 42 U.S.C. § 11133(a)(1)(A). This situation does not apply to Report #1, as Dr. Hoedtâs clinical privileges were not reinstated for more than six months after the Hospital initially suspended them. In the second circumstance, â[i]f the authorized hospital committee or body vacates the summary suspension, the entity must void the previous report submitted to the NPDB.â Guidebook, at E-39. Dr. Hoedt asserts that when his summary suspension ended, the Hospital effectively âvacatedâ it, entitling him to a voided Report #1. HHS disagrees, reasoning that the third Guidebook circumstanceâstating that if a summary suspension is âsubsequently [] modified or revised as part of a final decision by the governing board or similar body,â the reporting entity must submit a Revision-to-Action Report supplementing the initial reportâis what happened here. Id. The Court agrees with HHS and the Secretary that the third circumstance is most appropriate for addressing Dr. Hoedtâs summary suspension with the Data Bank. The Secretaryâs finding that the Hospital âliftingâ Dr. Hoedtâs suspension was not the same as vacating it is supported by a plain reading of the Guidebook and its surrounding guidance. Indeed, âvacateâ is defined as â[t]o nullify or cancel; make void; invalidate.â Vacate, Blackâs Law Dictionary (12th ed. 2024). The Hospital did not take any action to ânullifyâ or âinvalidateâ Dr. Hoedtâs suspension by, for example, making a finding that it was unwarranted or inappropriate. See, e.g., Jenkins v. Methodist Hosps, of Dallas, Inc., 478 F.3d 255, 260 (5th Cir. 2007) (addressing scenario where NPDB report was voided because a fair hearing âunanimously disagreed with [the physicianâs] summary suspensionâ). Instead, it elected to end Dr. Hoedtâs suspension, given his successful completion of the proctoring agreement. See supra, Section I.B. As the Secretary stated, this is consistent with a âliftâ of his suspension, defined as â[t]o stop or put an end to[.]â Lift, Blackâs Law Dictionary (12th ed. 2024). This outcome is also consistent with other provisions of the Guidebook that provide for the limited circumstances where voiding reports is appropriate. For instance, the Guidebook instructs that reports should be voided only when âthe report was submitted in error,â the action âwas not reportable because it did not meet NPDB reporting requirements,â or âthe action was overturned on appeal.â Guidebook, at E-8 (emphasis added). Because there is nothing in the record suggesting that Dr. Hoedtâs suspension was vacated, or âoverturned,â by the Hospital, the Secretary properly determined that the Hospital was correct to file Revision-to-Action reports after Dr. Hoedtâs summary suspension ended, rather than voiding Report #1 entirely. Accordingly, the Court rejects Dr. Hoedtâs argument on this issue, and finds the Secretaryâs determination that Report #1 need not be voided because Dr. Hoedtâs suspension ended to be compliant with the APA. B. The Secretary Did Not Err in Determining the Accuracy of the Reports. The Court turns to the partiesâ second dispute, whether the Secretary erred in finding that the Hospitalâs stated reason for Dr. Hoedtâs summary suspension was accurate.6 Dr. Hoedt 6 Dr. Hoedt does not contest on reply that he waived his arguments that the âDate of Actionâ and âDate Action Became Effectiveâ on Report #1 are inaccurate because he did not raise those issues with HHS directly. Coalition for Govât Procurement v. Fed. Prison Indus., Inc., 365 F.3d 435, contends that, contrary to what HHS asserts here, it was not his high infection and complication rates, but rather his patientâs unexpected death on March 16, 2022, that led to his suspension. HHS disagrees, reasoning that Dr. Hoedt fails to appreciate that his patientâs death and his poor clinical performance are not mutually exclusive, and that the Secretaryâs review of the accuracy of Report #1 was supported by substantial evidence in the record. The Court, again, agrees with HHS. Ultimately, Dr. Hoedtâs position âmisunderstands the purpose of the Data Bank and the scope of the Secretaryâs review.â Leal, 620 F.3d at 1283. âCongress enacted the Health Care Quality Improvement Act, which led to the creation of the Data Bank, after finding that there was âa national need to restrict the ability of incompetent physicians to move from State to State without disclosure or discovery of the physician's previous damaging or incompetent performance.ââ Id. (quoting 42 U.S.C. § 11101). To this end, the Data Bank âprevents a physician who applies to become a member of a hospitalâs medical staff or for clinical privileges from being able to hide disciplinary actions that have been taken against him.â Id. (citing 42 U.S.C. § 11135(a)(1) ((requiring a hospital to request information from the Data Bank about a physician when the physician applies to be on the medical staff or for clinical privileges)). This information is intended âonly to alert eligible entities that there may be a problem with the performance of a particular health care practitionerâ because the practitioner has been the subject of an adverse disciplinary action. Guidebook, at A-7. Given that the information in the Data Bank âis intended only to fully notify the requesting hospital of disciplinary action against a physician and the charges on which that action was based, 461â62 (6th Cir. 2004) (â[I]t is inappropriate for courts reviewing agency decisions to consider arguments not raised before the administrative agency involved.â); (see Doc. No. 84 (not responding to HHSâs waiver argument)). Accordingly, the Court will not substantively address those arguments. the Secretaryâs review of information in the Data Bank is limited in scope.â Leal, 620 F.3d at 1284. The review process does not allow the physician to challenge the reporting hospitalâs adverse action, or to challenge the allegations about the conduct that led to the reported action. Id.; see supra, Section I.A. Instead, â[t]he Secretary reviews a report for factual accuracy deciding only if the report accurately describes the adverse action that was taken against the physician and the reporting hospitalâs explanation for the action, which is the hospitalâs statement of what the physician did wrong.â Leal, 620 F.3d at 1284. Following those standards, to the extent Dr. Hoedt disputes the Hospitalâs version of his conduct that led to his suspension, that dispute is outside the scope of the Secretaryâs review.7 In turn, is not properly before this Court for consideration.8 See id. (finding the same); see also Guidebook, at F-5 (explaining that the âunderlying reasons for the reportâ cannot be disputed by a physician). Where Dr. Hoedt appropriately disputes whether Report #1 âaccurately depicts the action taken as reflected in the written record [on Dr. Hoedtâs summary suspension] provided byâ the Hospital, see Leal, 620 F.3d at 1284, the evidence contained in the administrative record shows that it does. For instance, as HHS highlights, the record supports that on March 21, 2022, after Dr. Hoedt had been informed of his summary suspension, the Hospital sent Dr. Hoedt a letter confirming his suspension. (Doc. No. 64 at 32). The letter confirmed the reason for Dr. Hoedtâs summary suspension was because the Hospital had âconcerns [] regarding the number of surgical 7 The same is true for Dr. Hoedtâs issues with HHSâs characterization on whether he got a fair hearing, as such due process matters are not properly before HHS for consideration. See 45 C.F.R. § 60.21(c)(1) (stating the Secretary âwill not consider . . . the due process that the [physician] receivedâ). 8 While Dr. Hoedt understandably takes issue with having to defend himself against the characterization of his medical practices in Report #1, it is worth noting that Data Bank reporting procedures provide for a physicianâs response to any reported information. (See, e.g., Doc. No. 64 at 175 (containing Dr. Hoedtâs response to the Hospitalâs gripes with him)). revisions [he] perform[ed], [his] surgical infection rate, and aspects of [his] surgical technique.â (Id.). The letter also explained why the Hospital felt suspension was necessary under these conditions, stating plainly that â[t]hese allegations warrant review and consideration of whether you have engaged in clinical performance which may have affected or resulted in danger to the health and/or safety of [Hospital] patients.â (Id.). Ten days later, the Hospital affirmed this was the reason for Dr. Hoedtâs suspension during the MEC meeting. The meeting minutes reflect that MEC discussed âDr. Hoedtâs clinical performance including an increased volume of surgical site infections as well as patient safety, selection and management.â (Id. at 60). Consistent with the Hospitalâs letter to Dr. Hoedt and the MECâs minutes, Report #1 stated that the Hospital had âsuspen[ded] [Dr. Hoedtâs] clinical privilegesâ due to âinadequate or improper infection control practicesâ and âsubstandard care or inadequate skill level.â (Id. at 7). The parallels between the administrative record and Report #1 to the Data Bank establish the âreportâs factual accuracy in the only sense that matters under the Act.â Leal, 620 F.3d at 1284. That some of the Hospitalâs submissions also reference Dr. Hoedtâs deceased patientâan event logically connected to Dr. Hoedtâs subpar medical practicesâdoes not alter this conclusion. (See, e.g., Doc. No. 64 at 45 (Hospital letter stating that summary suspension occurred after a patient of Dr. Hoedtâs died âafter completion of a revision surgery,â and also mentioning MEC meeting on Dr. Hoedtâs inadequate care)). At bottom, the similarities between the Hospitalâs rationale for suspending Dr. Hoedt in the administrative record and its description of that action in Report #1 shows that the Secretaryâs determination that Report #1 was factually accurate is supported by substantial evidence in the record. C. The Secretary Did Not Err in Finding the MECâs Recommendation to be Appropriately Included in Report #1. Lastly, the parties disagree on the Secretaryâs determination that the Hospital properly reported on the MECâs recommendation that Dr. Hoedtâs privileges be permanently revoked was a reportable event. As discussed above, see supra, Section I.A, a professional review action âthat adversely affects the clinical privileges of a physicianâ for longer than 30 days is reportable. 42 U.S.C. § 11133(a)(1)(A). A professional review action is defined as: an action or recommendation of a professional review body which is taken or made in the conduct of professional review activity, which is based on the competence or professional conduct of an individual physician (which conduct affects or could affect adversely the health or welfare of a patient or patients), and which affects (or may affect) adversely the clinical privileges . . . of the physician. Id. § 11151(9) (emphases added). Like the above analysis, see supra, Section III.A, in interpreting § 11151(9), the Court starts with its plain text. âUnder § 11151(9), a disciplinary action taken against a physician qualifies as a professional review action if the physician is disciplined for conduct that either adversely affects patient health or welfare, or could do so.â Leal, 620 F.3d at 1285. The Court need not decide whether the MECâs recommendation alone constitutes âdisciplineâ for reporting purposes, as other provisions of the Act describing what is reportable demonstrate why this information was properly included in Report #1. See supra, Section III.A. For instance, under 42 U.S.C. §§ 11133(a)(3)(B) and (C), â[t]he information to be reported under this subsectionâ includes both âa description of the acts or omissions or other reasons for the actionâ and âsuch other information respecting the circumstances of the action . . . as the Secretary deems appropriate.â An âact,â as used here, is defined as â[s]omething done or performed, esp[ecially] voluntarily; a deed.â Act, Blackâs Law Dictionary (11th ed. 2019). A âdescriptionâ is âa delineation or explanation of something by an account setting forth the subjectâs characteristics or qualities.â Description, Blackâs Law Dictionary (11th ed. 2019). âPutting these definitions together, the statute requires a âdelineation or explanationâ or âsomething done or performedââ or any other information respecting those circumstancesââwhich in this case means a delineation or explanation [or other information] of the Hospitalâsâ decision to summarily suspend Dr. Hoedtâs privileges. Brook v. Rogers, 656 F. Supp. 3d 78, 87 (D.D.C.), affâd sub nom. Doe v. Rodgers, 2023 WL 1978697 (D.C. Cir. Feb. 14, 2023), cert. denied, 144 S. Ct. 328 (2023). This all-encompassing language demonstrates that the âAct provides reporting entities space to include information that it does not explicitly identify in the statute, such as the results of an investigationâ or a MECâs related recommendation. Id. While the Court need not reach the legislative history of the Act to come to this conclusion, it is noteworthy that it supports this broad reading of hospital reporting requirements. See id. (collecting cases); see also H.R. Rep. No. 99- 903 (§ 11133(a)(3) of the Act âdoes not necessarily require an extensive description of the acts or omissions or other reasons for the action or, if known, for the surrender. It does, however, require sufficient specificity to enable a knowledgeable observer to determine clearly the circumstances of the action or surrender.â). By providing the MECâs recommendation based on the results of its internal investigation into Dr. Hoedtâs clinical practices, the Hospital enables those using the Data Bank information to fully understand the circumstances of Dr. Hoedtâs suspension. This also protects patients by giving entities enough information to make informed hiring choices. Indeed, the MEC made its recommendation to permanently revoke Dr. Hoedtâs clinical privileges after discussing the âthe investigation into allegations [of sub-standard care] which led to the summary suspension.â (Doc. No. 64 at 59). This information not only speaks to the âacts . . . or other reasons for the action,â § 11133(a)(3)(B), but also provides the Secretary with âinformation respecting the circumstances of the action[,]â §11133(a)(3)(C). Further, as HHS notes, this is consistent with § 11151(9)âs mandate that a professional review action can include recommendations from a professional review entity. Even if the MECâs recommendation is not, standing alone, reportable, it undoubtedly provided the Secretary with necessary relevant information pertaining to the undisputedly reportable event: Dr. Hoedtâs summary suspension. Given the broad set of information that is reportable under the Act, the Secretaryâs determination that the MECâs recommendation was properly reported is supported by substantial evidence in the administrative record, and is not contrary to law. Accordingly, Dr. Hoedtâs final argument for judgment in his favor is reyected. His motion will be denied. Because HHS has demonstrated that the Secretaryâs decisions were proper under the APA, its motion will be granted. IV. CONCLUSION For the foregoing reasons, HHSâs Motion for Summary Judgment (Doc. No. 78) will be granted, and Dr. Hoedtâs Motion for Summary Judgment (Doc. No. 71) will be denied. An appropriate order will enter. Wah. Eusbe. poll > Lins UNITED STATES DISTRICT JUDGE 20
Case Information
- Court
- M.D. Tenn.
- Decision Date
- September 9, 2025
- Status
- Precedential