NJ Supreme Court tosses $24M award to 'disloyal' surgeons against The Valley Hospital

Scott Fallon, NorthJersey.com
Updated ·3 min read
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A $24 million jury award to 11 neurosurgeons against The Valley Hospital was thrown out by the state Supreme Court this week in a convoluted case that featured allegations of retaliation, perceived disloyalty, longtime battles among Bergen County hospitals and two former New Jersey attorneys general duking it out in court.

The case will be sent back for a retrial after justices ruled unanimously that errors made by a lower court deprived Valley of a fair trial.

While the case homes in on dry legal matters like contracts, hospital bylaws and jury instructions, it also offers a glimpse into the ultra-competitive landscape among the glut of hospitals in North Jersey, especially in affluent Bergen County, where hospitals vie for the best doctors and most patients.

Two of the neurosurgeons began working for Valley in 2003, and the practice called Comprehensive Neurosurgical grew over the years to include several more. The neurosurgeons helped grow Valley's facilities and surgical offerings by helping to establish the hospital's Spine Center and its neuro-oncology program, and by introducing such specialized equipment as the “Biplane” angiography system and the “Gamma Knife” radiosurgery procedure, court records show.

As Valley's neurology capabilities were growing, Hackensack University Medical Center had taken over the closed Pascack Valley Hospital just 6 miles away. Valley sued to stop the reopening but lost.

Hackensack and a partner reopened Pascack Valley fully in 2013 and granted privileges to the group of neurosurgeons to treat patients. Audrey Meyers, Valley’s CEO, expressed in a meeting with the Comprehensive neurosurgeons that she disliked how they simultaneously held privileges and leadership positions at both Valley and Hackensack, according to court records.

A subsequent analysis by Valley administrators concluded that the Comprehensive neurosurgeons had lower inpatient and outpatient volumes, performed fewer neurosurgery procedures at Valley and "overall rendered a lower quality of patient care" than another group of neurosurgeons. A document also showed that there were 60 patients who had transferred from The Valley Hospital to Hackensack from 2012 to 2014.

In 2015, Valley administrators awarded a contract to the other neurosurgeon group that effectively halted the Comprehensive neurosurgeons from using the updated technology or treating new patients from the emergency room.

Lawyers for the Comprehensive neurosurgeons argued that the analysis was a "sham document prepared to justify, retroactively, Valley’s decision to punish plaintiffs because of perceived disloyalty to Valley," according to court records.

Years of litigation, $24 million jury award

Thus began years of litigation, including a $24.3 million jury award to the Comprehensive neurosurgeons in 2020 followed by an appeal in 2022 and the new judgment issued by the highest court in New Jersey.

The case featured two former state attorneys general facing off against each other. Christopher Porrino, who represented Valley, served in that role under Gov. Chris Christie. Peter Verniero, who represented the surgeons, served as attorney general under Gov. Christie Whitman and later was a justice on the state Supreme Court before going back into private practice.

Both lawyers treated the justices' decision as a victory.

Peter Verniero, who represented the surgeons, served as Attorney General under Gov. Christie Whitman and later was a justice on the state Supreme Court before going back into private practice.
Peter Verniero, who represented the surgeons, served as Attorney General under Gov. Christie Whitman and later was a justice on the state Supreme Court before going back into private practice.

Porrino called it an "important win for The Valley Hospital, health care systems across New Jersey and the country, as it underscores the deference to be afforded hospitals in making policy decisions that further patient care and public health objectives."

Verniero said the justices appeared to have supported one of his key arguments and that it will help the surgeons prevail at retrial. The decision is "an important reinforcement of our law that will enable physicians who have been treated unfairly or in bad faith to seek redress in our courts like any other litigant," he said.

This article originally appeared on NorthJersey.com: NJ Supreme Court voids $24M award against The Valley Hospital