Professional Services v. CA

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Professional Services, Inc.

vs CA
G.R. No. 126297, G.R. No. 126467, G.R. No. 127590, Feb. 11, 2008
SANDOVAL-GUTIERREZ, J.

FACTS: On April 4, 1984, NATIVIDAD AGANA was admitted at the MEDICAL CITY GENERAL HOSPITAL
(owned by PROFESSIONAL SERVICES, INC.) because of difficulty of bowel movement and bloody anal
discharge. DR. MIGUEL AMPIL (neighbour of the Aganas and surgeon/consultant at Medical City) diagnosed her
to be suffering from cancer of the sigmoid. Seven days after, Dr. Ampil performed an anterior resection surgery
upon Natividad but during the process he obtained ATTY. ENRIQUE AGANA’S (husband of Natividad) consent to
let DR. JUAN FUENTES to perform hysterectomy upon his wife (Natividad needed this surgery nakita lang during
operation). Dr. Fuentes successfully performed the operation and Dr. Ampil took over, completed the anterior
resection surgery and closed the incision EVEN if the attending nurses told him that there are two lacking S P O N
G E S (sorry, feeling ko nasa Grey’s Anatomy ako). After a couple of days, Natividad complained of excruciating
pain in her anal region but the doctors told her that such was a natural consequence.

On May 9, 1984, Natividad and Enrique went to USA to seek further treatment regarding her cancerous nodes until
she was free of cancer. Three months later, they went back to the Philippines while Natividad was still suffering
from pains. Later on, her daughter (it did not say pero I assume eto ‘yung doctor nila na anak na student dati ni Dr.
Ampil) found a piece of gauze protruding from her vagina. Dr. Ampil was immediately informed, went to
Natividad’s house, and extracted a gauze measuring 1.5 inches in width. Dr. Ampil assured Natividad that the pain
would soon vanish.

But, no, the pain did not vanish, it intensified, so they seek treatment at POLYMEDIC GENERAL HOSPITAL
where a doctor detected the presence of a foreign object in her vagina – a foul-smelling gauze measuring 1.5 inches
in width. The gauze had badly infected her vaginal vault and the doctors were forced to perform another surgery
which forced stool to excrete through the vagina and another one to remedy the situation.

On Nov. 12, 1984, Natividad and her husband filed with the RTC of QUEZON CITY a complaint for damages
against PSI, Dr. Ampil and Dr. Fuentes. However, on Feb. 16, 1986, while pending the outcome of the case,
Natividad died and she was duly substituted by her children.

Seven (FUCKING) years later, the RTC rendered judgment in favour of spouses Agana finding the three jointly and
severally liable. On appeal, the CA affirmed the said judgment with modification in the sense that the complaint
against Dr. Fuentes was dismissed.

PSI, Dr. Ampil and the Aganas filed with the SC separate petitions for review on certiorari. PSI contends that there
is no employer-employee relationship between it and its consultant, hence, it cannot be held liable.

ISSUE: W/N THERE IS AN EMPLOYER-EMPLOYEE RELATIONSHIP BETWEEN THE HOSPITAL AND


ITS CONSULTANTS AND W/N PSI IS LIABLE IN THIS CASE.

RULING: SC held that PSI is liable. Previously, employers cannot be held liable for the fault or negligence of its
professionals. However, this doctrine has weakened since courts came to realize that modern hospitals are taking a
more active role in supplying and regulating medical care to its patients, by employing staff of physicians, among
others. Hence, there is no reason to exempt hospitals from the universal rule of respondeat superior.

The court mentioned the Ramos v. CA doctrine on E-E relationship:


- For purposes of apportioning responsibility in medical negligence cases, an employer-employee
relationship in effect exists between hospitals and their attending and visiting physicians. [LABOR
LESSON: power to hire, fire, power of control]
There is also the agency principle of apparent authority/agency by estoppel:
- Imposes liability because of the actions of a principal or employer in somehow misleading the public
into believing that the relationship or the authority exists [see NCC 1869]
- PSI publicly displays in the Medical City lobby the names and specializations of their physicians.
Hence, PSI is now estopped from passing all the blame to the physicians whose names it proudly
paraded in the public directory, leading the public to believe that it vouched for their skill and
competence.
- If doctors do well, hospital profits financially, so when negligence mars the quality of its services, the
hospital should not be allowed to escape liability for its agents’ acts.
There is also the doctrine of corporate negligence/corporate responsibility:
- This is the judicial answer to the problem of allocating hospital’s liability for the negligent acts of
health practitioners, absent facts to support the application of respondeat superior.
- This provides for the duties expected [from hospitals]. In this case, PSI failed to perform the duty of
exercising reasonable care to protect from harm all patients admitted into its facility for medical
treatment. PSI failed to conduct an investigation of the matter reported in the note of the count nurse,
and this established PSI’s part in the dark conspiracy of silence and concealment about the gauzes.
- The corporate negligence doctrine imposes several duties on a hospital: (1) to use reasonable care in
the maintenance of safe and adequate facilities and equipment; (2) to select and retain only competent
physicians; (3) to oversee as to patient care all persons who practice medicine within its walls; and (4)
to formulate, adopt, and enforce adequate rules and policies to ensure quality care for its patients.
These special tort duties arise from the special relationship existing between a hospital or nursing
home and its patients, which are based on the vulnerability of the physically or mentally ill persons and
their inability to provide care for themselves.
PSI also liable under NCC 2180:
- It failed to adduce evidence to show that it exercised the diligence of a good father of the family in the
accreditation and supervision of Dr. Ampil.

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