Some physicians have sued plans for deselection, claiming their due process
rights were denied because they were not given the same procedure as would
be applicable in medical staff peer review proceedings. These cases failed
because nongovernmental hospitals do not have to provide due process as a
matter of right. They are only required to provide whatever due process they
contract for in their medical staff bylaws. Hospitals provide extensive due
process because they want to be able to claim immunity under HCQIA. MCOs,
as insurers, are not subject to antitrust lawsuits, and are much harder to attack
under the other theories used to attack peer review determinations. This
means that they do not need the immunity provided by HCQIA so they have no
need to provide the due process necessary to qualify for its protections. The
courts also rejected claims that HCQIA itself created a cause of action for
physicians denied due process, holding that it has no purpose beyond providing
immunity for properly conducting peer review.