The Minnesota Supreme Court recently held in Medical Staff of Avera Marshall Regional Medical Center v. Avera Marshall that medical staff bylaws constitute an enforceable contract between a hospital and its medical staff. Finding no preexisting duties, the majority determined that medical staff bylaws hold sufficient consideration to create an enforceable contract.
This case note begins by exploring contract formation in general and the history of construing medical staff bylaws as contractual obligations. Then, it discusses the facts of Avera Marshall, the rationale of the majority, and the rationale of the dissent. Next, it argues that the Minnesota Supreme Court failed to accurately discern both a lack of consideration, as well as mutual assent that should have precluded the formation of a contract. Finally, this note raises several public policy concerns that the majority opinion overlooked and concludes that Avera Marshall may stifle hospital boards’ future attempts to resolve staffing conflicts.