SAAD, J.
This Court granted plaintiff's application for leave to appeal a trial court order that denied plaintiff's motion to compel discovery. For the reasons set forth below, we affirm.
Plaintiff, Isidore Steiner, D.P.M., P.C., claims that defendant, Dr. Marc Bonanni, a former employee of the corporation, breached his employment contract with plaintiff and misappropriated property of the corporation. Plaintiff maintains that
By its language, HIPAA asserts supremacy in this area, but allows for the application of state law regarding physician-patient privilege if the state law is more protective of patients' privacy rights. In the context of litigation that, as here, involves nonparty patients' privacy, HIPAA requires only notice to the patient to effectuate disclosure whereas Michigan law grants the added protection of requiring patient consent before disclosure of patient information. Because Michigan law is more protective of patients' privacy interests in the context of this litigation, Michigan law applies to plaintiff's attempted discovery of defendant's patient information. And, because Michigan law protects the very fact of the physician-patient relationship from disclosure, absent patient consent, the trial court properly rejected plaintiff's efforts to obtain this confidential information, and we affirm the trial court's ruling.
On July 6, 1999, plaintiff and defendant entered into an employment agreement that contained a noncompetition and nonsolicitation clause. Among other things, the clause in issue prohibited defendant from inducing, soliciting, diverting, servicing, or taking away patients from plaintiff for a three-year period following the termination of the employment agreement. Defendant resigned from plaintiff in July 2007. Thereafter, plaintiff filed a lawsuit against defendant for breach of contract, conversion, fraud, and misrepresentation, and seeking an accounting. An essential component of plaintiff's claim for damages is that, after he left the practice, defendant treated plaintiff's patients in violation of the employment agreement.
During discovery, plaintiff sent defendant a set of interrogatories, one of which requested the names, addresses, and telephone numbers for every patient treated by defendant since he resigned. Plaintiff claims that it cannot protect its contractual rights to its patients without discovery of which of its former patients are now patients of defendant. Defendant objected to the interrogatory on the ground that such disclosure would violate HIPAA and Michigan's physician-patient privilege, and the trial court issued a qualified protective order in which the parties agreed to conduct their litigation in compliance with HIPAA and agreed to maintain all privileges. Because defendant failed to fully respond to plaintiff's interrogatories, plaintiff filed a motion to compel. In response, defendant argued that the information requested is protected by Michigan's statutory physician-patient privilege, which, he argued, contains more stringent requirements than HIPAA. The trial court denied plaintiff's motion to compel production of the patients' names, and ruled that the names of the nonparty patients are privileged under Michigan law.
We review de novo a trial court's decision about the application of the physician-patient
Plaintiff argues that the trial court erred by holding that the names, addresses, and telephone numbers of the nonparty patients that defendant allegedly wrongfully took from plaintiff are privileged and protected from disclosure by Michigan law, under MCL 600.2157 and Baker, 239 Mich.App. 461, 608 N.W.2d 823, because HIPAA applies and permits disclosure.
HIPAA is the federal regulation that governs the retention, use, and transfer of information obtained during the course of the physician-patient relationship. In re Petition of Attorney General for Investigative Subpoenas, 274 Mich.App. 696, 699, 736 N.W.2d 594 (2007). "Under HIPAA, the general rule pertaining to the disclosure of protected health information is that a covered entity may not use or disclose protected health information without a written authorization from the individual as described in 45 C.F.R. § 164.508, or, alternatively, the opportunity for the individual to agree or object as described in 45 C.F.R. § 164.510." Holman v. Rasak, 486 Mich. 429, 438-439, 785 N.W.2d 98 (2010). However, 45 C.F.R. § 164.512 "enumerates several specific situations in which `[a] covered entity may use or disclose protected health information without the written authorization of the individual, as described in [45 C.F.R.] § 164.508, or the opportunity for the individual to agree or object as described in [45 C.F.R.] § 164.510....'" Holman, 486 Mich. at 439, 785 N.W.2d 98, quoting 45 C.F.R. § 164.512. Included within those situations is disclosure for judicial and administrative proceedings, which allows a provider or other covered entity to disclose the protected information in response to an order or in response to a subpoena or discovery request if the provider receives satisfactory assurance that notice was provided to the patient or that reasonable efforts were made to secure a qualified protective order. 45 C.F.R. § 164.512(e). As our Supreme Court also explained in Holman:
We first observe that, under Michigan law, the privilege belongs to the patient and only the patient may waive it. Baker, 239 Mich.App. at 470, 608 N.W.2d 823. The purpose of the physician-patient privilege is to protect the confidential nature of the physician-patient relationship. Swickard v. Wayne Co. Medical Examiner, 438 Mich. 536, 560, 475 N.W.2d 304 (1991); Gaertner v. Michigan, 385 Mich. 49, 53, 187 N.W.2d 429 (1971). These principles are particularly important in a context, as here, wherein a plaintiff seeks the names, addresses, and telephone numbers of nonparty patients, many of whom are unlikely to know the lawsuit is pending.
MCL 600.2157 provides, in part, that,
When interpreting a statute, this Court must give effect to the Legislature's intent as expressed in the language of the statute by analyzing the words, phrases, and clauses according to their plain meaning. Bukowski v. Detroit, 478 Mich. 268, 273-274, 732 N.W.2d 75 (2007). The language of MCL 600.2157 states that physicians "shall not" disclose information obtained from patients for purposes of medical treatment, except as otherwise provided in the law. The use of the word "shall" denotes mandatory action. Wolverine Power Supply Coop., Inc. v. Dep't of Environmental Quality, 285 Mich.App. 548, 561, 777 N.W.2d 1 (2009). This type of mandatory language is not found in HIPAA. Instead, HIPAA provides that a physician may disclose protected health information in response to a subpoena or discovery request when adequate assurances are given from the requesting party that the patients have been notified and informed of their right to deny the request. 45 C.F.R. § 164.512(e). Thus, the language of HIPAA allows for permissive disclosure, whereas Michigan law generally prohibits disclosure.
There are no exceptions under Michigan law for providing random patient information related to any lawsuit. Unlike HIPAA, MCL 600.2157 does not provide for disclosure in judicial proceedings. Also, HIPAA, unlike Michigan law, makes disclosure exceptions for public-health activities, victims of abuse, neglect, or domestic violence, or for health-oversight activities. 45 C.F.R. § 164.512(b), (c), and (d).
We further note that the policy behind the Law standard on stringency supports the application of Michigan law. The Law court opined that the main concern regarding the disclosure of patient medical information is that the patient is in a position to authorize the disclosure. Law, 307 F.Supp.2d at 711. This policy has also been repeatedly expressed by this Court and the Michigan Supreme Court. See Baker, 239 Mich.App. at 470, 608 N.W.2d 823; Gaertner, 385 Mich. at 53, 187 N.W.2d 429; Swickard, 438 Mich. at 560-561, 475 N.W.2d 304. Here, protecting the interests of the nonparty patients is of utmost importance. The nonparty patients who defendant allegedly treated confided in defendant with personal information, including the fact that they were treated at all, which should not be disclosed without their consent. Moreover, these patients are not in a position to waive their rights. Nothing in the record shows that they are aware of this case or were given the right to decide the issue. Thus, the public policy underlying both HIPAA and Michigan's physician-patient privilege supports applying Michigan law, specifically because there are only limited exceptions to Michigan's general nondisclosure
Applying MCL 600.2157, we affirm the trial court's holding that the names, addresses, and telephone numbers are privileged. In Schechet v. Kesten, 372 Mich. 346, 350-351, 126 N.W.2d 718 (1964), our Supreme Court held that the physician-patient privilege protects the names of patients who were not parties to the case. The Court ruled that the physician-patient privilege
In Dorris v. Detroit Osteopathic Hosp. Corp., 220 Mich.App. 248, 249, 559 N.W.2d 76 (1996), the plaintiff sued a hospital and alleged that she refused a particular drug that was subsequently administered to her. After she received the drug, the plaintiff's blood pressure dropped. Id. The plaintiff requested the name of her roommate in the hospital because she claimed that the roommate was present when she refused the drug. Relying on Schechet, this Court held the name of the nonparty roommate was protected by the physician-patient privilege. Id. at 251-252, 559 N.W.2d 76.
Similarly, in Popp v. Crittenton Hosp., 181 Mich.App. 662, 449 N.W.2d 678 (1989), this Court relied on Schechet and held that the plaintiff was not entitled to the name and medical records of a nonparty patient. In Dierickx v. Cottage Hosp. Corp., 152 Mich.App. 162, 164-165, 393 N.W.2d 564 (1986), the plaintiffs brought a medical-malpractice action claiming that their first-born daughter suffered central-nervous-system damage because of the defendants' negligence. The defendants requested the medical records of the plaintiffs' two youngest children, one of whom appeared to have a disorder similar to that of the eldest daughter, to determine if the central-nervous-system damage could have been genetic. Id. at 165, 393 N.W.2d 564. This Court held that the two younger children had not placed any disorder in controversy, and therefore did not waive the privilege. Id. at 167, 393 N.W.2d 564. This Court in Baker, 239 Mich.App. at 463, 608 N.W.2d 823, with the support of the above-cited cases, held that "the physician-patient privilege is an absolute bar that prohibits the unauthorized disclosure of patient medical records, including when the patients are not parties to the action."
Thus, Schechet and its progeny fully support our holding that the names, addresses, and telephone numbers requested by plaintiff are privileged under Michigan law.
Affirmed.
SAWYER, P.J., and FITZGERALD, J., concurred with SAAD, J.