Rights of the medical staff in the transfer of hospital ownership

In the current uncertain economic climate, a greater number of hospitals than ever before are changing ownership through sale or merger. This article explores the legal implications of a change in hospital ownership for both the individual medical staff physicians and the medical staff organization. The article takes the position that, with respect to individual physicians, their vested rights in staff membership and clinical privileges cannot be altered simply because of a change in hospital ownership. In addition, with respect to the medical staff organization, the medical staff bylaws contract remains intact and, therefore, a change in hospital ownership does not permit the new hospital owners to make wholesale changes in the medical staff organization.