Berlin v. Sarah Bush Lincoln Health Center
Supreme Court of Illinois
688 N.E.2d 106 (1997)
Dr. Berlin (plaintiff) signed a five-year employment contract with Sarah Bush Lincoln Health Center (defendant), a nonprofit hospital corporation. The contract had a covenant barring Berlin from practicing within 50 miles of the Health Center for two years after leaving. Berlin resigned and began working about a mile away. The Health Center sued to enforce the covenant, and Berlin countered that the whole contract was void because a corporation legally cannot "practice medicine." The trial court agreed with Berlin and the appellate court affirmed, so the Health Center appealed to the Illinois Supreme Court.
Whether a duly licensed hospital corporation is subject to the corporate-practice-of-medicine prohibition when state law separately authorizes it to provide medical treatment through its staff.