A federal judge has dismissed a suit by a Reston doctor who accused the American Medical Association, local hospitals, medical societies and insurance companies of driving him out of business because he advertised low-cost services.

The suit by Dr. H. Bafry Jacobs was dismissed in U.S. District Court in Alexandria Thursday by U.S. District Judge Oren R. Lewis. Jacobs, who acted as his own lawyer during the civil trial, immediately filed notice that he will appeal the dismissal to the 4th U.S. Circuit Court of Appeals in Richmond.

Jacobs had sought damages from the Fairfax County, Alexandria, Prince William County and Virginia medical societies, the American Medical Association, the Fairfax Hospital Association, Prince William Hospital and others. He charged that they conspired to put him out of business.

Jacobs contended that although he was a competent doctor, he was denied medical malpractice insurance, ousted from medical societies and dismissed from hospital staffs. He also said the medical societies wrote to newspapers to urge them not to accept his advertising.

Jacobs said yesterday he spent seven days presenting evidence to support his case. Judge Lewis, he said, dismissed the suit without sending it to the six-member jury. According to Jacobs, the defendants presented no evidence before asking for Lewis' ruling.