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DUNN v. PRAISS

139 N.J. 564 (1995)

656 A.2d 413

LINDA B. DUNN, INDIVIDUALLY, AND AS THE ADMINISTRATRIX AD PROSEQUENDUM OF THE ESTATE OF CAREY DUNN, PLAINTIFF, v. DONALD E. PRAISS, M.D., AND MARTHA BRUMBAUGH, M.D., DEFENDANTS. JOEL E. MARMAR, M.D., AND SOUTH JERSEY UROLOGIC ASSOCIATES, DEFENDANTS-RESPONDENTS, v. HEALTH CARE PLAN OF NEW JERSEY, DEFENDANT-APPELLANT.

The Supreme Court of New Jersey.

Decided April 18, 1995.

Attorney(s) appearing for the Case

Richard A. Grossman argued the cause for appellant (Grossman & Kruttschnitt, attorneys; Herbert Kruttschnitt, III, of counsel; Eli L. Eytan, on the brief).

Stephen M. Greenberg argued the cause for respondents (Stern & Greenberg, attorneys; Mr. Greenberg and Jeffrey Speiser, on the brief).

The opinion of the Court was delivered by O'HERN, J.

This appeal concerns the concurrent duties of a health maintenance organization (HMO) and the physicians who contract with the HMO to deliver medical services.

Traditionally the prohibition on the corporate practice of medicine stemmed from a perceived need to protect the public from the commercial exploitation of the practice of medicine. "It has been said to be against public policy to permit a `middleman...

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