Petrovich v. Share Health Plan of Illinois, Inc.
Supreme Court of Illinois
719 N.E.2d 756 (1999)
Petrovich's (plaintiff) employer enrolled her in Share Health Plan of Illinois (Share) (defendant), an HMO that contracted with independent physicians, paid on a per-patient (capitation) basis, but never told enrollees in its member handbook that physicians were independent contractors -- instead calling them "Share physicians" or "our staff." Petrovich picked Dr. Kowalski as her primary care physician from Share's list, believing her doctors were Share employees, and Kowalski and other Share physicians failed to timely diagnose her oral cancer. Petrovich sued Kowalski for malpractice and Share as vicariously liable; Share argued its physicians were independent contractors and moved for summary judgment, which the trial court granted and the appellate court reversed, finding a factual dispute over apparent agency.
Whether an HMO may be held vicariously liable for the negligence of its independent-contractor physicians under the doctrines of apparent authority and implied authority.