But it is. It's the reason the insurance isn't paying out, causing the hospital to have to pay out therefore having to go bankrupt. This whole thing is a stretch honestly, but going by their logic that's how it seems to be. Sure, she got the worst end from all of the survivors but she has also a part to blame in this big scheme of things, along with Derek not taking the airline settlement, negligent Owen, and the lawyers switching the lawsuit to the hospital. It's a part of it.
I agree with you now. You have brought me back around to my original opinion on it when I first saw them tell Owen that. The first thing I posted was, "Wow, I wonder what the others are going to say now that they know the hospital is on the hook thanks to her hotheaded move!" Then I came around to the idea that it was Owen's job to know how many attendings and residents were on board to ensure compliance with the policy. But, do we have any indication that he knew that she replaced Alex? There's a chance that as far as Owen knew, the passenger manifest never changed. Now, it is obvious that Owen didn't know about the rule because he was blindsided when the lawyers told him about it, so it is unlikely he would have stopped her because he had no idea that it would matter. Regardless, in terms of simple cause and effect, Arizona's decision to pull Karev is the reason why the hospital has to pay the judgment. That's what I thought when I heard it the first time on the show and you've brought me back around to it.
Here's the thing: this is not just Derek's brilliant scheme and Arizona isn't going into anything forcibly. Callie came up with the idea of buying up the hospital, not Derek. Up to that moment, the only thing Derek did was support the idea. And I doubt Arizona went along with anything until she felt like getting involved. She hardly seemed involved in the lawsuit until the resolution of it all and now, until she saw something that would affect her. Neither Derek or Callie tried to convinced her after that to join their plan.
I was referring to their initially agreeing to do it Derek's way when they rejected the first settlement offer, not this. The "brilliant scheme" I was referring to was that, not this. You're right when you say it isn't Derek's idea because it was Callie who came up with it. Derek got on board and they became co-captains of the crazy ship. They did try to convince Arizona when she was speaking sense and rejecting the idea. That had her meet with Derek's financial advisor. But, she came around to the idea for her own stupid reason. She, like an asshole, decided to risk her security and her daughter's security because they couldn't get someone else's kid experimental therapy for his cancer. She lots of points with me for using her money, going along with Callie using Sofia's money which is not theirs at all, and liquidating their other savings to sink into this. They don't even have a house with a yard for their daughter, but Arizona decides that she's going forget her objections because Bailey was mad over the fact that they were turned down for an experimental treatment? I can see the business model of this hospital already: no expense is too big even if it's an experimental treatment your insurance company probably won't cover! I will say, though, that since Arizona was obviously going to have to change her mind to allow this inane plot to play out, I'm glad she did it for reasons of her own. I'm sick of her acquiescing and changing her mind to want what Callie wants. If she was going to do such a stupid thing, it's refreshing to see her do it on her own terms. Now they'll have an extra set of reasons to explain to Sofia why they thought it would be a good idea for them to essentially steal from her in order to buy a fucking hospital.
I totally forgot the most ironic part of the episode. So, after all season ignoring every single law, rule, regulation, civil procedure, and any real life rule that might hamper their ability to tell this ridiculous story, I love how they had Derek bring in a guy to explain all the intricate rules governing the purchase of a hospital by doctors, the rules about setting up a corporation, etc. Right before that moment, the law never came into play, was never discussed, and was totally inconsequential, but when it became useful to the plot, they were all on it. But, they actually weren't. Hilariously, as they were showing us how complicated and fraught with intricate legal briar patches, they make a huge error: the lawyer/advisor told Derek and the others that if Owen found out about their coup and didn't report it, he could face jail time. Um, he would be in breach of contract. The government does not incarcerate people over civil matters between private citizens. Oh, Grey's! The irony it burns.
Can someone explain the LLC stuff to me in layman's terms? Are they going to be able to continue to be doctors?
An LLC is a limited liability company. It is a combination of aspects of a corporation in that the owners are only financially liable for their stake in the company (meaning, if the company incurs debts or other liabilities, the personal funds of the shareholders cannot be sued as individuals and their personal money outside the corporation is not a valid target for creditors) and a partnership for the purposes of income taxes. I've simplified it as much as possible but there's no real "layman's term" way to explain it. What I've given here is bare bones. For the purposes of this all you need to know is that should something happen to the hospital, the surgeons' creditors can't go after their homes or personal bank accounts because of money the hospital owes.
They will still be able to be doctors. In real life, even though congress shut down physician owned imaging practices and laboratories because of the conflict of interest in the '80s, a loophole in the law allows for doctors to own hospitals. And, if you want to read how well that has gone, I encourage you to read this short article about the demise of Century City Doctor's Hospital.
It isn't included in this article, but in an article written right around the time the group of Beverly Hills surgeons were buying it from an ailing healthcare group, they were crowing about how much better doctors know how to run hospitals because they know what's going on and they know what it takes (we heard our beloved Seattle Grace doctors saying these exact words). They plunged $100 million into that hospital only to find themselves, three years later, $60 million in debt and unable to find a buyer to take it off their hands.