Protection for Healthcare Practitioner Whistleblowers
(June 2010) By Kevin M. Cox, Associate
For more information, contact Paul Farquharson.
Lark v. Montgomery Hospice, Inc.,
No. 140 (Md. App. May 13, 2010) available at http://mdcourts.gov/opinions/coa/2010/140a07.pdf
In this landmark ruling for the relatively new Maryland
Health Care Worker Whistleblower Protection Act, Md. Code Ann., Health Occ. §
1-501 to 1-506, the Court of Special Appeals of Maryland made it clear that it
is important to the protection of patients and healthcare professionals who cry
"foul" against their employer to be protected from unlawful firing.
Specifically, the Court held that the act does not protect an employer against a
legitimate Whistleblower action asserted by a former employee who is fired
before he or she made an external report, provided that the former employee
actually "reported the activity, policy, or practice [that poses a substantial
and specific danger to the public health or safety] to a supervisor or
administrator of the employer in writing [.]"

Maryland's Health Care Worker Whistleblower Protection Act
protects employers against frivolous Whistleblower actions asserted by
disgruntled former employees who had never: (1) "afforded the employer a
reasonable opportunity to correct" the alleged "substantial and specific danger
to the public health or safety,"; and/or (2) followed the employer's "corporate
compliance plan specifying who to notify of an alleged violation of a rule, law,
or regulation." The protection provided by the Act does not extend to former
employees who made no internal reports at any point in time before their
employment was terminated.
The plaintiff, Suzanne Lark ("Ms. Lark"), was a registered
nurse who formerly worked at Montgomery Hospice before she was fired suddenly.
She was fired because her alleged conduct as a nurse deviated from acceptable
and safe standards. Ms. Lark had worked for Montgomery Hospice, Inc. for over
three year and during her annual evaluation, she was charged with failing to
adhere to accepted and safe nursing practices and was immediately terminated.
Prior to her firing, Ms. Lark had made complaints to her
supervisor and the medical director that a number of significant and
unsafe/unlawful practices, as well as serious mistakes, were occurring at
Montgomery Hospice. Mr. Lark also reported that the unsafe practices were
occurring with greater frequency. Specifically, she complained via email of a
host of practice issues between September of 2006 and April of 2007.
Ms. Lark filed a claim for wrongful termination and
Montgomery Hospice, Inc. filed a Motion to Dismiss. The trial court granted the
motion on the ground that because Ms. Lark had not complained to an agency
outside the hospice, the Maryland Health Care Worker Whistleblower Protection
Act prohibited her claim. She appealed and the issue before the Court of Special
Appeals of Maryland was whether a former employee was entitled to assert a
wrongful discharge action under the Act (1) even if she never reported to an
external board "inactivity, policy, or practice of the [former] employer that is
in violation of a law, rule, or regulation; "and/or (2) the "unlawful acts" that
she threatened to report were errors committed by fellow employees who did not
have the authority to establish the former employer's "policy or practice."
The Court found that a healthcare employer has a duty to
correct violations that endanger the health and safety of patients to whom that
employer owes a duty of care. When such violations are reported to one of its
supervisors, a healthcare employer cannot avoid liability under the Act on the
ground that the violations it failed or refused to correct were committed by
employees who had no authority to establish the employer's policy. The Court
ultimately held that (1) the report of unlawful acts to an external board is not
a condition precedent to a civil action under the Act, and (2) when a fellow
employee's repeated violations of a law, rule, or regulation is reported to a
supervisor, the failure or refusal to correct the violation constitutes a
prohibited act of the employer. Therefore, the Court vacated the summary
judgment entered against Ms. Lark and remanded the case for further proceedings
not inconsistent with its opinion.