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DIR Implements Mandatory Payroll Submission Requirements

The Department of Industrial Relations reminds Public Works contractors and subcontractors to submit certified payroll records (CPRs) using DIR’s online system. The Labor Commissioner will resume enforcement of this requirement today, August 1, 2016.

Under the Labor Code, Public Works in general refers to the construction, alteration, demolition, installation, maintenance, or repair work, done under contract, and paid for in whole or in part out of public funds It can include preconstruction and post-construction activities related to a Public Works project

All workers employed on Public Works projects must be paid the prevailing wage determined by the Director of the DIR according to the type of work and location of the project. The prevailing wage rates are usually, but not always, based on rates specified in collective bargaining agreements.

A Public Works contractor is anyone who bids on or enters into a contract to perform work that requires the payment of prevailing wages. It includes subcontractors who have entered into a contract with another contractor to perform a portion of the work on a Public Works project. It includes sole proprietors and brokers who are responsible for performing work on a Public Works project, even if they do not have employees or will not use their own employees to perform the work.

All contractors and subcontractors working on Public Works projects must submit electronic certified payroll records to the Labor Commissioner. The Labor Commissioner has exempted projects monitored by the following legacy Labor Compliance Programs: California Department of Transportation (Caltrans), City of Los Angeles, Los Angeles Unified School District, County of Sacramento and projects covered by a qualifying project labor agreement.

To learn about the enhancements to DIR’s online reporting system, Public Works contractors and subcontractors are invited to consult the updated certified payroll reporting User Guides or watch the new CPR tutorials. Contractors can also find answers to questions about the improvements on DIR’s frequently asked questions (FAQs) page.

The certified payroll record display for data uploaded via XML has been updated to reflect the simplified reporting records. Please note that the requirements and steps for uploading payroll records via XML have not changed. DIR has additional compliance information on its new Public Works pages. The Public Works community is also invited to subscribe to email alerts on public works topics, DIR’s press releases and other departmental updates.

DIR protects and improves the health, safety and economic well-being of over 18 million wage earners, and helps their employers comply with state labor laws.

DIR’s Division of Labor Standards Enforcement (DLSE), also known as the Labor Commissioner’s Office, enforces prevailing wage rates and apprenticeship standards in public works projects, inspects workplaces for wage and hour violations, adjudicates wage claims, investigates retaliation complaints, issues licenses and registrations for businesses and educates the public about labor laws.

Researchers Report Long Term Effects of Head Trauma

The medical literature is very inconsistent with respect to the effects of head trauma and concussion injury to professional athletes. These claims are becoming far more common in workers’ compensation claims. Researchers now claim that the brain may show signs of concussion for months or years after the injury occurred, according to a Canadian study of college athletes summarized by an article in Reuters Health.

Using advanced MRI scans, researchers found evidence of brain shrinkage in the frontal lobes of athletes with a history of concussions compared to those who never had a concussion. The frontal lobe is involved in decision-making, problem solving and impulse control, but the researchers say it’s unclear whether the concussion-related changes actually affected those abilities.

They also found less blood flow to certain areas of the brain, mainly the frontal lobes. A decrease in blood flow means less oxygen to areas of the brain, which means the brain won’t function properly, said lead study author Dr. Nathan Churchill of the Keenan Research Center of St. Michael’s Hospital in Toronto.

“If the frontal lobe is injured, you want to be concerned about how this can affect your life down the road,” he told Reuters Health. “There’s a huge body of evidence that shows this can have severe consequences.”

Up to 3.8 million Americans are estimated to experience recreation-related concussions every year, according to a 2014 study by the U.S. Department of Defense and National Collegiate Athletic Association.

For the new study, Churchill and his colleagues recruited 43 varsity athletes, 21 male and 22 female, from a variety of contact and non-contact sports, including volleyball, hockey, soccer, American football, rugby, basketball and lacrosse. Twenty-one athletes had a history of concussion and 22 did not. Concussed athletes had their last injury at least nine months before the MRI scans, and half were 26 months or more post-concussion.  The researchers report their findings in the Journal of Neurotrauma.

Detailed brain maps created with the scans showed that athletes with prior concussions had a 10 to 20 percent drop in brain size in some areas of the frontal lobe, compared to those with no past concussions. Also, the athletes who’d had a concussion had 25 to 35 percent less blood flow in the frontal lobe region, which is vulnerable to injury because the front of the brain tends to collide with the skull during head impact.

The structure of the brain’s white matter, which connects different regions, also changed. These changes can’t be easily interpreted as damage, but they look different from athletes with a history of more extensive injury, Churchill noted. “This tells us there is something different about white matter anatomy for young healthy athletes with concussion, but we’re still investigating what that is,” he said.

In brains that were previously injured, an area known as the posterior cortex also increased in size. The brain has the ability to adapt, said Churchill. “If one part of the brain is injured, the other part of the brain can pick up the slack,” he said. But why and how this happens remains unclear.

“We think it has to do with the brain recovering itself,” he said, “which is an interesting area in research – looking at how the brain reorganizes after an injury.”

The bigger question is whether athletes with concussions should be monitored more closely, especially if they continue to participate in sports. “For the future, we hope studies like ours can help develop safer protocols,” he said.

FDA Approves Ablating Procedure for Back Pain

One of the most common reason people go to their doctors is back pain. According to the National Institutes of Health, 80 percent of adults will experience low back pain some time in their lives. In fact, chronic low back pain, lasting 12 weeks or longer, affects nearly one-third of the nation’s population.  Needless to say, spine injury is a great portion of a workers’ compensation claim department inventory.

Treatments for low back pain range from noninvasive to invasive: physical therapy, pain medications to major surgery, such as spinal fusion. Now a minimally invasive, nerve ablating procedure, recently cleared by the Food and Drug Administration, may give some people with chronic low back pain a new treatment option.

“In 25 years of practicing orthopedics, this is the most important clinical study I’ve ever done,” said Jeffrey Fischgrund, M.D., chairman, Orthopedics, Beaumont Hospital, Royal Oak and principal investigator of the FDA-approved Relievant SMART trial. “The system is proven to be safe and effective in clinical trials. It is much less invasive than typical surgical procedures to treat low back pain.”

The treatment uses radio frequency energy to disable the targeted-nerve responsible for low back pain. Under local anesthesia with mild sedation, through a small opening in the patient’s back, an access tube is inserted into a specific bony structure of the spine, called a vertebral body. Radio frequency energy is transmitted through the device, creating heat, which disables the nerve. The access tube is then removed. The minimally invasive, implant-free procedure takes less than one hour.

The technology is indicated for treating one or more levels between L3 and S1 in people that have not responded to more common treatments for over six months. The main side effect of Radio Frequency Ablation (RFA) is some discomfort, including swelling and bruising at the site of the treatment, but this generally goes away after a few days. As with any medical procedure, RFA is not appropriate for everyone. For example, radiofrequency ablation is not recommended for people who have active infections or bleeding problems.

Patients eligible for this new procedure typically are candidates for more invasive back surgery or take strong pain medications, like opioids. Those research participants that had the radio frequency ablation procedure noticed significant improvement in their back pain within two weeks of surgery.

The nerve ablation procedure and technology was developed by Relievant Medsystems Inc., a California-based medical device company.

CMS Provider “Integrity Efforts” Reduces “Pay-and-Chase” Losses

CMS released a report this week showing that investments made in program integrity activities pay off. From October 1, 2012 through September 30, 2014 every dollar invested in CMS’ Medicare program integrity efforts saved $12.40 for the Medicare program. Total savings from program integrity efforts were nearly $42 billion over the two-year period covered by the report.

CMS has achieved this impact by using a multifaceted approach, ranging from provider enrollment and screening standards, to use of enforcement authorities, to use of advanced analytics such as predictive modeling. It has previously reported on various outcomes tied to specific programs.

The Department of Health and Human Services (HHS) and its Centers for Medicare & Medicaid Services (CMS) are in the third year of implementing sophisticated predictive analytics technology to prevent and detect fraud. It is using the anti-fraud authorities provided in the Affordable Care Act and the Small Business Jobs Act (SBJA) of 2010,

The Fraud Prevention System (FPS) was created in 2010 by the Small Business Jobs Act, and CMS has extensively used its tools. The SBJA requires that the HHS Office of the Inspector General (OIG) certify the savings and costs of the FPS. CMS achieved certification in the second and third year of the program. For the first time in the history of federal health care programs, the OIG certified a methodology to calculate cost avoidance due to removing a provider from the program. This is a critical achievement as moving towards prevention requires a clear measurement of the future costs avoided.

Since CMS implemented the technology in June 2011, the FPS has identified or prevented $820 million in inappropriate payments by identification of new leads or contribution to existing investigations. During the third year the FPS identified or prevented $454 million in inappropriate payments through actions taken due to the FPS or through investigations expedited, augmented, or corroborated by the FPS. Total savings were 80% higher than the savings from the previous implementation year, with a nearly 10:1 return on investment.

Thus CMS’s efforts to pro actively prevent potentially fraudulent and improper payments from being made have been increasingly effective, moving its efforts away from the “pay-and-chase” method of recovering payments after they had already been made.

The primary focus of the FPS during the first two implementation years was identifying providers with the most egregious behavior for investigation by the new Zone Program Integrity Contractors (ZPICs) created to perform program integrity functions. During the third implementation year, CMS tested new and innovative ways to leverage the FPS technology and best practices to support additional fraud, waste, and abuse activities. In future years, CMS will continue to expand the FPS and the transfer of knowledge related to predictive analytics technology. For example, CMS will expand FPS edits to deny or reject more improper payments and CMS will provide technical assistance to states that decide to implement predictive analytics technology.

CMS collaborates with various partners. Assistance from its contractors, state Medicaid agencies, and law enforcement partners are also instrumental in this effort when potentially fraudulent and improper payments result from intentionally fraudulent activities. CMS welcomes input from beneficiaries, providers, suppliers, and others to inform possible future enhancements to our program integrity strategy. Please contact CMS at 1-800-MEDICARE (1-800-633-4227) or TTY: 877-486-2048 with your thoughts or to report potentially improper billing.

Red Bluff City Councilman Faces Comp Fraud Charges

A member of the Red Bluff City Council wanted on fraud charges was arrested Sunday at a Florida airport as he was attempting to flee the country.

The Record Searchlight reports that Suren J. Patel, 43, was heading to somewhere in the Caribbean when he was arrested on an outstanding warrant out of Tehama County Superior Court in California.

The district attorney’s office had an investigation into Patel’s activities for nearly a year, and charges against him last month.

Patel, owner of the America’s Best Value Inn in Red Bluff, faces several charges, including workers’ compensation fraud, perjury and conspiracy to commit welfare fraud. Patel also faces charges for not paying taxes to the city. Officials claim Patel did not pay taxes he owed to the city as owner of the Inn.

Patel is also being investigated for embezzlement in connection to a complaint filed by a guest at the hotel who said her credit card was charged $6,000 after she stayed there.

Authorities opened the investigation against Patel in March 2015 and in May of that year the District Attorney’s Office took computers, cell phones and business records from the hotel. During the investigation, the DA’s Office learned Patel had not paid workers’ compensation insurance and was committing welfare fraud by getting two employees benefits.

Red Bluff City Manager Rick Crabtree said Patel told officials he was no longer the owner of the hotel, but that was not confirmed by the DA’s Office. “It’s a sad circumstance to be in,” Crabtree said. “Allegations that a council member has been literally stealing money from the city. It is obviously not a circumstance we’re happy about. It’s disappointing.”

Crabtree said as a result of this case the city has changed how it will collect taxes from hotel owners and conduct more audits.

After charges were filed in June a warrant for his arrest was issued. Officers went to Sacramento to arrest Patel, but he could not be found. Officials were alerted to Patel’s whereabouts when he attempted to catch a plane in Florida to leave the country.

The Brevard County Sheriff’s Office in Florida listed Patel as an inmate in the jail Sunday, along with his mug shot. The sheriff’s office, in Titusville, Florida, only listed his charge as “out-of-state fugitive.”

Patel is now in jail in Brevard County, Florida, held on $250,000 bail while he awaits extradition to California..

Half of Major Surgery Now Done With Robotic Techniques

Around half of all major surgery in some countries is now done with robots. The US, UK, and India are among the leading proponents, but many other countries, too, are reporting statistics that would indicate that a significant proportion of surgical procedures is now robotics-assisted.

Harvard Medical School conducted a study in the US of around 500,000 cancer patients between the years of 2003 and 2010, and found that the number of surgical procedures that were robotic-assisted went from 0.7 per cent to 50 per cent over those years.

It also found that the use of robot-assisted surgery was more common among surgeons at teaching hospitals and at intermediate and large-sized hospitals, as well as at urban hospitals.

The Harvard team calculated that robot-assisted surgery increased the overall cost to the hospital, contributing to a 40 per cent increases in annual expenditures.

Dr Steven Chang, who led the study, said: “Our findings give insights on the adoption of not just robotic technology but future surgical innovations in terms of the general pattern of early diffusion, the potential impact on costs of new and competing treatments, and the alternations in practices patterns such as centralization of care to higher volume providers.”

In the UK, parts of the National Health Service (NHS) have been introducing robots into surgery over the past few years. In a study by NHS England found that robotics were used to assist surgeons in 49 to 50 per cent of the time in some types of cancer cases, such as prostate cancer. The report said it found no difference in the “operative time”, or the duration of the operation itself, “but patients having a robot-assisted procedure had shorter length of admissions”.

This is a view that is echoed by other medical professionals, such as Dr Vanita Ahuja, of the York Hospital in Pennsylvania, who produced a report partly based on a nationwide database from 2008 to 2011, and found that robotic-assisted cardiac surgery increased by 600 per cent over the four-year period.

“Robotic-assisted cardiac surgery has lower length of stay than non-robotic surgery,” Dr Ahuja said, adding: “Results of this study suggest robotic-assisted cardiac surgery may be as safe as non-robotic surgery and offer the surgeon an additional technique for performing cardiac surgery.”

In India, too, surgeons are coming to similar conclusions. Dr N. P. Gupta, chairman of Medanta Kidney and Urology Institute, is claimed to have been the the first to use the robot-assisted surgical technology for radical prostatectomy in India. In an interview with The Times of India, Dr Gupta said “patients can go home in two to three days after the surgery”, partly because robots made clear and accurate, which allows suturing to suturing to be with minimum amount of damage to surrounding tissues.

Orthopedic surgery robots use the 3D imaging technology and computer navigation techniques to improve ability of surgeons to place implants with precise alignment. Many studies have shown that these techniques are safer and more effective as compared to traditional surgical techniques. David Bortel, MD, an orthopedic surgeon at MidMichigan Medical Center at Midland, says: “In reality, patients are reporting comparable mobility, functionality and quality of life”.

Though emerging technology does not guarantee better results, robotics has always been effective in hip and knee replacement surgeries. Improvements in technology and new methods of verification for implant sizing and placement are significant for patients and surgeons.

DWC Schedules QME Examination for October 29

The Division of Workers’ Compensation is now accepting applications for the Qualified Medical Evaluator (QME) examination on October 29.

Physicians who wish to take the exam on October 29, 2016, must submit a completed original Application for Appointment as Qualified Medical Evaluator (QME Form 100). If you submitted an application for the April 16, 2016 exam, you are not required to submit another application, but must send all other documentation/fees required and complete the Registration for the QME Competency Examination (QME Form 102).

The application and all required documentation must be reviewed and approved by the DWC before a physician can be registered for the exam (Title 8, California Code of Regulations §§10, 11). The application must be postmarked by September 15, 2016 in order to qualify for this exam. Qualified registrants will receive a confirmation letter along with a Candidate Information Booklet by email/mail.

Please keep a copy for your records. The DWC is not responsible for late or lost applications.

All physicians are required to pay a non-refundable/non-rollover $125.00 fee to sit for any upcoming QME examination (Title 8, California Code of Regulations § 11(f)(2)). Before appointment as a QME, the physician shall complete a 12 hour course in disability evaluation report writing approved by the Administrative Director (Labor Code § 139.2).

The DWC will assess your annual QME fee after you have successfully passed the QME Competency Exam in order to activate your QME status. Please call 1-800-794-6900 or (510) 286-3700 or email QMETest@dir.ca.gov for further assistance. For additional information regarding the qualifications to become a QME, please visit the DWC website. You may also obtain additional application forms on the website.

For more information please contact the Medical Unit at 510-286-3700 or by email at QMETest@dir.ca.gov.

Marin Physician Gets Three Years in Prison for Illegal Opioids

Dr. Michael Roger Chiarottino, age 68, of San Rafael, was indicted by a federal Grand Jury on September 14, 2014. He was charged with fifteen counts of distribution of controlled substances in violation of Title 21, United States Code, Section 841(a)(1).

Chiarottino pleaded guilty on March 8, 2016, to one count of distributing oxycodone, a Schedule II controlled substance, outside the usual course of professional practice and without a legitimate medical purpose.

According to his plea agreement, Chiarottino admitted that he prescribed large quantities of controlled substances (including oxycodone, oxymorphone, hydromorphone, methadone, and hydrocodone) to undercover DEA agents posing as patients in exchange for cash. On each occasion, Chiarottino failed to conduct an appropriate medical examination of, or obtain a sufficient patient medical history from, the undercover agent to support a prescription for such a large quantity of narcotics. In total, Dr. Chiarottino prescribed 46.8 grams of oxycodone (numbering 1,530 thirty-milligram pills) and admitted doing so with the intent to act outside the usual course of professional practice and without a legitimate medical purpose.

In his plea agreement, Chiarottino also admitted that he met with patients and wrote prescriptions for controlled substances at North Bay Pain Management Services and therefore maintained a premises for the distribution of controlled substances. Chiarottino also admitted that, as a licensed physician and DEA registrant, he abused a position of trust and used a special skill to intentionally prescribe controlled substances without a legitimate medical purpose.

Chiarottino was sentenced this July to three years in prison for illegally prescribing oxycodone and other controlled substances.

The sentence was handed down by The Honorable Jeffrey S. White, U.S. District Court Judge. Judge White also sentenced the defendant to a five-year period of supervised release. During this period of supervised release, Chiarottino is barred from providing medical treatment or examining any patient in the course of any employment or professional practice. Chiarottino is also forbidden from prescribing medication or controlled substances to any person and may not supervise any medical practitioner in treating any medical patient or prescribing any medication. Finally, as a condition of his supervised release, Chiarottino is required to cooperate with and not contest any administrative action to revoke or suspend his license to practice medicine or prescribe controlled substances by the Medical Board of California and the Drug Enforcement Administration. Chiarottino’s medical license is currently suspended.

The defendant will begin serving the sentence on October 20, 2016.

The prosecution is the result of an investigation by the Drug Enforcement Administration, the Livermore Police Department, the Pleasanton Police Department, and the Medical Board of California. This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.

New Law Says Goodbye to ACOEM Guidelines

In 2004, the Legislature passed SB 899 which was a major reform of the California workers’ compensation system. As a part of that reform, SB 899 required the DWC to create an evidence-based set of medical guidelines to ensure that injured workers were receiving consistent, appropriate treatment from physicians. In the intervening period, SB 899 required that physicians use the ACOEM guidelines, which are a set of widely-utilized evidence-based, peer reviewed medical guidelines that continue to be used in California’s workers’ compensation system and many other state workers’ compensation systems.

In 2009, the DWC promulgated the California-specific workers’ compensation system medical treatment guidelines known as the Medical Treatment Utilization Schedule or “MTUS.” The MTUS utilized many of the chapters that make up ACOEM, but also referenced additional guidelines or developed independent guidance on medical treatment. As such, while ACOEM is still used as a part of the MTUS, it no longer operates as a stand-alone guideline, and the references to it in the Labor Code can be confusing and cause practitioners to fail to refer to the MTUS.

The DWC has suggested to the legislature that the Labor Code be cleaned up to reflect the fact that the references to ACOEM are no longer accurate, and could potentially be confusing. SB 914 signed into law by Governor Brown this month is intended to accomplish this goal.

The California Neurology Society California, the Society of Industrial Medicine and Surgery and the California Society of Physical Medicine and Rehabilitation voiced support for the new law. There was no opposition reported in the legislative record.

SB 914 takes effect next January.

Although the words “American College of Occupational and Environmental Medicine’ s Occupational Medicine Practice Guidelines” or ACOEM Guidelines as they are generically known disappear from Labor Code section 4614.4, much of the actual text of ACOEM Guidelines remains as part of the MTUS which is adopted by DWC regulation. A review of the bulk of the MTUS chapters shows a straightforward citation directly to the equivalent chapter of ACOEM as follows:

Section 9792.23.1 – Neck and Upper Back Complaints (ACOEM Chapter 8)
Section 9792.23.2 – Shoulder Complaints (ACOEM Chapter 9)
Section 9792.23.3 – Elbow Complaints (ACOEM Chapter 10)
Section 9792.23.4 – Forearm, Wrist, and Hand Complaints (ACOEM Chapter 11)
Section 9792.23.5 – Low Back Complaints (ACOEM Chapter 12)
Section 9792.23.6 – Knee Complaints (ACOEM Chapter 13)
Section 9792.23.7 – Ankle and Foot Complaints (ACOEM Chapter 14)
Section 9792.23.8 – Stress Related Conditions (ACOEM Chapter 15)
Section 9792.23.9 – Eye (ACOEM Chapter 16)

Thus, although the ACOEM Guideline will no longer be with us by name, it most assuredly will be by substance. The DWC has however added chapters to the MTUS where ACOEM did not address needed topics. For example, the MTUS has its own chapter on Acupuncture, Chronic Pain, and Post Surgical Treatment.

Feds Pass Comprehensive Addiction and Recovery Act

Opioid abuse has come to the forefront as a serious public health issue. In fact, drug overdoses are now the leading cause of death in the United States, ahead of motor vehicle accidents and firearms. A number of federal legislative proposals have recently been introduced to address this crisis.

In near-apocalyptic terms, U.S. Sen. John Cornyn described the rising tide of American opioid abuse at a Senate Judiciary Committee hearing earlier this year. “Opioid prescription drug and heroin addiction is ripping away at the fiber of our homes and our communities in our nation,” Texas’ senior senator said. “It’s destroying families, increasing crime, making our communities less safe, hurting our economy, and robbing millions of Americans of their future.”

The National Law Review reports that while the U.S. House passed several bills on the issue, the U.S. Senate passed its own measure, S.524, the Comprehensive Addiction and Recovery Act of 2016 (CARA Act). In a bipartisan effort, both the House and Senate appointed conferees to hammer out differences. Those appointed to the Conference included 35 House members (made up of 21 Republicans and 14 Democrats) including Representatives from -key Committees including the House Energy and Commerce Committee and the House Ways and Means Committee. The Senate had seven conferees. While addressing opioid abuse is bipartisan in nature, there was disagreement on process and content throughout the legislative process. One area of debate was funding for the bill.

The Act passed in the Senate by 90-2 after Democrats followed their colleagues in the House of Representatives and dropped calls for the legislation to include additional funding. Senate Majority Leader Mitch McConnell, called for Senate Democrats to pass the measure, citing support for the legislation by the National Association of Counties, the National League of Cities, the Fraternal Order of Police and more than 200 other groups.

CARA includes several provisions concerning the need for expansion of prevention and education on the misuse of prescription pain killers and heroin. Law enforcement agencies and first responders are permitted to distribute naloxone for the reversal of overdose. Evidence-based treatment and intervention programs for incarcerated individuals and those across the country will be implemented. There will be safe disposal sites for prescription medications to diminish the opportunity for ill use. The Act creates a medication assisted treatment program for pain management and expands states’ drug monitoring programs to eliminate doctor shopping.

Now that CARA has passed and has been signed into law by the President, stakeholders will be watching closely for implementing rules, regulations, changes to incentive-based patient surveys, as well as any grant opportunities.

Further discussion of funding may arise as Congress discusses budgetary options in 2017and beyond.

“This is a historic moment, the first time in decades that Congress has passed comprehensive addiction legislation, and the first time Congress has ever supported long-term addiction recovery,” said Sen. Rob Portman, a chief author of the legislation. “This is also the first time that we’ve treated addiction like the disease that it is, which will help put an end to the stigma that has surrounded addiction for too long.”