Life Healthcare loses appeal over terminating doctor accused of racism, homophobia

The Western Cape High Court has dismissed an application by JSE-listed Life Healthcare Holdings Group and Life Vincent Pallotti Hospital for leave to appeal a judgment concerning the termination of oncologist Dr Louis Kathan’s practising privileges.

Dr Kathan’s practising privileges at facilities operated by Life Healthcare Holdings Group and Life Vincent Pallotti Hospital were terminated as the hospital alleged that he had made homophobic, racist and sexist remarks while at the hospital.
In a strongly worded ruling delivered on September 16, Judge Derek Wille said the hospital groups’ application disclosed “no appealable error of law or fact” and had no reasonable prospects of success before a higher court.
The court ordered the two companies to pay the costs of the application, including the costs of two counsel.

Judge criticises appeal application

Wille lambasted the hospitals’ approach to the appeal, describing the grounds advanced as “indiscriminate, overlapping and randomly presented alleged errors” that failed to identify appealable issues that could justify interference by another court.

“The application for leave to appeal discloses no appealable error of law or fact and has no reasonable prospects of success on appeal,” the judge held.

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Although the court granted condonation for procedural non-compliance, the judge remarked that the hospitals had engaged in what he described as an “impressive exercise in judicial gymnastics”, involving legal arguments that differed markedly from positions adopted in related litigation.

Long-running dispute

The dispute centres on the termination of Dr Kathan’s practising privileges at facilities operated by the hospital groups over the alleged homophobic, racist and sexist remarks.

The matter has attracted considerable public attention because the termination meant that 17 cancer patients could no longer receive treatment from Dr Kathan at Life Healthcare facilities.

In earlier proceedings, patients challenged the decision, arguing that it was irrational and unlawful and that the hospital groups had failed to follow their own internal policies before terminating the doctor’s privileges.

Policies at heart of the case

A key issue before the court was whether Life Healthcare correctly applied its internal conduct and practising privileges policies.

Kathan argued that the hospital groups were required to follow a structured process that included corrective and rehabilitative measures before terminating his privileges.

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The hospitals, by contrast, argued that their privileges policy gave them the power to immediately suspend or terminate a doctor’s admitting privileges where conduct was considered detrimental to the institution or its reputation.

However, Judge Wille found that the policies must be interpreted together and that the hospitals could not rely on one policy while ignoring the obligations imposed by the other.

According to the judgment, the hospital groups elected not to immediately terminate Dr Kathan’s privileges and instead followed a lengthy inquiry process. The judge found that their actions undermined their later reliance on provisions allowing for summary termination.

Immediate termination powers questioned

The court found that the relevant clause permitting immediate termination was intended for exceptional circumstances where a doctor’s continued presence could threaten patients, clinical standards or hospital operations.

Wille said the hospitals’ own conduct contradicted their argument that immediate removal was necessary because they delayed implementation of the termination decision for several months.

He pointed out that the hospitals were attempting to retrospectively justify the cancellation of the doctor’s privileges after choosing a different disciplinary route.

No basis for higher court intervention

The hospital groups also argued that Dr Kathan had waived or replaced his practising rights by accepting a promotion.

The court rejected that argument, finding no evidence that he intentionally abandoned those rights.

Wille further held that the hospitals had not provided sufficient admissible evidence to establish misconduct that was serious enough to justify terminating the contractual relationship governing practising privileges.

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  • The Western Cape High Court dismissed Life Healthcare Holdings Group and Life Vincent Pallotti Hospital's application for leave to appeal the termination of Dr Louis Kathan's practising privileges.
  • Dr Kathan's practising privileges were terminated due to alleged homophobic, racist, and sexist remarks made at the hospital.
  • Judge Derek Wille ruled that the hospitals' appeal disclosed no error of law or fact and had no reasonable prospects of success.
  • The court found the hospitals could not rely on their immediate termination policy since they initially conducted a lengthy inquiry process instead of promptly terminating Dr Kathan.
  • The court rejected the hospitals' claim that Dr Kathan waived his practising rights by accepting a promotion and found insufficient evidence of serious misconduct to justify termination.

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