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More Opioid Drugmakers Settle Claims

Reuters reports that Endo International Plc and Allergan Plc have agreed to pay $15 million to avoid going to trial in October in a landmark case by two Ohio counties accusing various drug manufacturers and distributors of fueling the U.S. opioid epidemic.

The tentative deals disclosed on Tuesday came ahead of the first trial to result from 2,000 lawsuits pending in federal court in Cleveland largely by local governments seeking to hold drug companies responsible for the deadly epidemic.

Endo announced said it had reached an agreement-in-principle to pay Cuyahoga and Summit counties $10 million to and provide them up to $1 million worth of two of its of its drug products free of charge.

Allergan has tentatively agreed to pay $5 million to resolve claims involving its branded opioids, though the deal does not resolve claims involving generic painkillers, said Frank Gallucci, a lawyer for Cuyahoga County.

The accords are the first to result from the counties’ cases, which were selected for the first bellwether, or test, trial in the litigation to allow parties to gauge the value of the remaining claims and inform potential settlement talks.

Other companies still set to face trial on Oct. 21 include drugmakers Purdue Pharma LP, Teva Pharmaceutical Industries Ltd and Johnson & Johnson and drug distributors McKesson Corp, Cardinal Health Inc and AmerisourceBergen Corp.

Endo, which in 2017 withdrew its painkiller Opana ER from the market, said the settlement includes no admission of wrongdoing.

More than 2,300 lawsuits by state and local governments are pending nationally, accusing drug manufacturers of deceptively marketing opioids in ways that downplayed their risks and drug distributors of failing to detect and halt suspicious orders.

Most of the lawsuits are before U.S. District Judge Dan Polster in Cleveland, who has pushed for a settlement and will preside over the bellwether trial.

Purdue and Teva this year settled claims by Oklahoma’s attorney general for $270 million and $85 million, respectively, ahead of a trial before a state-court judge.

The state subsequently took Johnson & Johnson to trial. An Oklahoma judge will rule on Monday on whether the company should be held liable in a lawsuit by the state’s attorney general who argues the drugmaker should be forced to pay $17 billion for fueling the opioid epidemic.

More Opiod Drugmakers Settle Claims

Reuters reports that Endo International Plc and Allergan Plc have agreed to pay $15 million to avoid going to trial in October in a landmark case by two Ohio counties accusing various drug manufacturers and distributors of fueling the U.S. opioid epidemic.

The tentative deals disclosed on Tuesday came ahead of the first trial to result from 2,000 lawsuits pending in federal court in Cleveland largely by local governments seeking to hold drug companies responsible for the deadly epidemic.

Endo announced said it had reached an agreement-in-principle to pay Cuyahoga and Summit counties $10 million to and provide them up to $1 million worth of two of its of its drug products free of charge.

Allergan has tentatively agreed to pay $5 million to resolve claims involving its branded opioids, though the deal does not resolve claims involving generic painkillers, said Frank Gallucci, a lawyer for Cuyahoga County.

The accords are the first to result from the counties’ cases, which were selected for the first bellwether, or test, trial in the litigation to allow parties to gauge the value of the remaining claims and inform potential settlement talks.

Other companies still set to face trial on Oct. 21 include drugmakers Purdue Pharma LP, Teva Pharmaceutical Industries Ltd and Johnson & Johnson and drug distributors McKesson Corp, Cardinal Health Inc and AmerisourceBergen Corp.

Endo, which in 2017 withdrew its painkiller Opana ER from the market, said the settlement includes no admission of wrongdoing.

More than 2,300 lawsuits by state and local governments are pending nationally, accusing drug manufacturers of deceptively marketing opioids in ways that downplayed their risks and drug distributors of failing to detect and halt suspicious orders.

Most of the lawsuits are before U.S. District Judge Dan Polster in Cleveland, who has pushed for a settlement and will preside over the bellwether trial.

Purdue and Teva this year settled claims by Oklahoma’s attorney general for $270 million and $85 million, respectively, ahead of a trial before a state-court judge.

The state subsequently took Johnson & Johnson to trial. An Oklahoma judge will rule on Monday on whether the company should be held liable in a lawsuit by the state’s attorney general who argues the drugmaker should be forced to pay $17 billion for fueling the opioid epidemic.

NCCI Reviews Medical Marijuana and Workers’ Compensation

NCCI’s Court Case Update provides a look at some of the cases and decisions monitored by NCCI’s Legal Division that may impact workers compensation across the states. This August 2019 edition contains updated information on cases previously introduced and presents new cases and decisions.

Legalization of marijuana is an ongoing area of broad interest at the state and federal levels.

In the 2019 state legislative sessions, legislatures stayed the course in taking up issues surrounding the legalization of marijuana. State courts are also engaged in reviewing marijuana-related issues in workers compensation, as well as the workplace.

In Oklahoma the case of Rose v. Berry Plastics Corp. is on appeal to the state supreme court; the court of appeals concluded that the presence of THC in an employee’s blood after a workplace accident does not automatically mean that the employee was intoxicated so as to deny workers compensation benefits.

In the Florida case of Jones v. Grace Health Center, a workers compensation judge (JCC) found that Florida’s medical marijuana statute prohibits reimbursement under workers compensation, and that requiring employers and insurers to pay for a worker’s medical marijuana would violate the federal Controlled Substances Act. The JCC also determined that employers and insurers should not be required to pay for a worker’s medical evaluation to obtain medical marijuana because the cost of the evaluation would be part and parcel of the cost of obtaining marijuana. The case has been appealed to Florida’s First District Court of Appeal.

In New Jersey the case of Wild v. Carriage Funeral Holdings, Inc., the New Jersey Supreme Court is expected to review the state’s medical marijuana law to determine whether a worker – who was a state-authorized medical marijuana user – can sue his former employer for violation of a state antidiscrimination law, when the employer terminated the worker for a drug test that was positive for marijuana metabolites.

At the federal level, pending proposals seek to decriminalize marijuana (S1552), allow state regulation without federal interference (HR2093), and protect financial institutions and insurance companies that provide services for legitimate cannabis businesses (HR1595).

In a recent development, the federal Court of Appeals for the Second Circuit, in Washington et al. v. Barr, declined to consider a constitutional challenge to the inclusion of marijuana as a controlled substance, ruling that plaintiffs should exhaust their administrative remedies before suing in court.

Panel Affirms 132a Award and Clarifies “Lauher” Standard

Ehsan Alnimri sustained injury to his low back on June 20, 2010, while employed by Southwest Airlines as a ramp agent Ontario International Airport. He was required frequent lifting and carrying of weights up to 70 pounds and it occasionally involved lifting up to 100 pounds.

He was taken off work by his PTP, Dr. Sobol until September 2010 when he was returned to full duty.  Alminri continued to work full duty without restriction until he was taken off the job on November 26, 2011.

Dr. Sobol the PTP issued findings based on the AMA Guides of approximately 28 % but with no work restrictions appearing in the report. Dr. Wakim found 14% impairment under the AMA Guides and found work restrictions which precluded him from very heavy lifting on a constant basis and 70 pounds on an occasional basis.”

On November 26, 2011, Alnimri was informed that he was being removed from duty due to a doctor’s report, but was not told which one. He eventually obtained a supplemental report from Dr. Wakim which returned him to full duty as of May 2012. He actually returned to work on June 20, 2012. Thus he was removed from work until June 19, 2012, when he returned to work without restrictions.

The parties resolved the case in chief by Stipulations with Request for Award on August 8, 2013. It proceeded to trial on the remaining L.C. 132a claim for the lost pay between November 26, 2011 and June 19, 2012. The WCJ ruled in favor in Alnimri finding discrimination under L.C. 132a, and awarded a $10,000 penalty and back wages. The WCAB affirmed in th panel decision of Alnimri v Southwest Airlines.

The WCAB conceded the determination by the California Supreme Court in Department of Rehabilitation v. Workers’ Comp. Appeals Bd (Lauher) (2003 ) 30 Cal.4th 1281, 1298-1299 [68 Cal.Comp.Cases 831] that an employer “does not necessarily engage in ‘discrimination’ prohibited by section 132a merely because it requires an employee to shoulder some of the disadvantages of his industrial injury. By prohibiting ‘discrimination’ in section 132a, we assume that the Legislature meant to prohibit treating injured employees differently, making them subject to disadvantages not visited on other employees because the employee was injured or had made a claim.”

But, the panel went on to say “Based on its specific application to the facts of Lauher, we view the Court’s phrase “singled out for disadvantageous treatment ” to be an application of the broader standard adopted by Lauher-that, in addition to showing that he or she suffered an industrial injury and that he or she suffered some adverse consequences as a result of some action or inaction by the employer that was triggered by the industrial injury, an applicant “must also show that he or she had a legal right to receive or retain the deprived benefit or status, and the employer had a corresponding legal duty to provide or refrain from taking away that benefit or status.” (Lauher, supra at p. 1300.) Stated another way, an employee must show they were subject to “disadvantages not visited on other employees because they were injured. .. .” (Id.) Because the employee in Lauher was not deprived of a legal right to TDI, and therefore could not show he was treated differently than other employees with respect to his alleged detriment, he could not establish a prima facie case of discrimination.”

“Thus, on the record before us, including the absence of evidence that defendant acted upon its decision to refer applicant to a company physician or otherwise complete its usual process for resolving conflicts between work status reports before dismissing applicant, we conclude that defendant subjected applicant to disadvantages not visited upon other employees because they were injured.”

Charges Against 4 Doctors Dismissed in Orange County

The Sacramento Bee reports that charges against four of the local doctors in a $40 million medical fraud case were dismissed in Orange County Superior Court.

A judge dismissed the insurance fraud allegations against doctors John Casey, Jonathan Cohen, Mohamed Ibrahim and William Pistel during a July 19 hearing in Southern California. The physicians practice medicine at Stanislaus Orthopaedic and Sports Medicine Clinic in Modesto.

The physicians did not respond to a request for comment.

In April 2017, the orthopedic surgeons were among two dozen defendants in California charged with multiple counts of insurance fraud, filing false and fraudulent claims and conspiracy, following an investigation by the state Insurance Commissioner, former Orange County District Attorney Tony Rackauckas and other agencies.

Authorities said a Beverly Hills couple masterminded a complex insurance fraud scheme, in which doctors and pharmacists were recruited to prescribe unnecessary treatment for workers compensation insurance patients.

Two other Modesto physicians, Robert Caton and Jerome Robson, accepted plea agreements last year serving to dismiss the felony charges against them.

Robson pled guilty Dec. 3 to a misdemeanor charge of unlawful referral of patients. The court sentence included a $17,500 fine, payment of restitution and three years’ informal probation. Robson was ordered not to treat workers compensation patients for three years.

In September 2018, Caton pled guilty to a misdemeanor charge of false and fraudulent claims and accepting kickbacks. He was ordered to pay $175,270 in restitution to the insurance companies and $18,000 to a victims witness emergency fund and was placed on three years probation.

Late last year, the Orange County DA’s office said there was no evidence any patients were harmed by the Modesto doctors who allegedly participated in the scheme but the prosecution vowed to secure restitution for the insurance companies. More than 25 insurance companies were victimized by the alleged scam from 2011 through 2015.

In announcing the charges in April 2017, authorities said that Christopher King of Beverly Hills masterminded a scheme in order to maximize profits from workers comp patients.

He allegedly made payments to physicians across the state when those doctors prescribed a compound cream, oral medications and urine tests. The Kings billed insurers up to $700 per tube for the creams with no therapeutic value that were administered to patients. The doctors prescribing the creams were paid a $50 flat rate, according to authorities.

Christopher King has pled guilty to two felony charges, and admitted to four others. He is set for a sentencing hearing next month.

Task Force Suggests Physicians Screen for Illegal Drugs

Created in 1984, the U.S. Preventive Services Task Force is an independent, volunteer panel of national experts in prevention and evidence-based medicine. The Task Force works to improve the health of all Americans by making evidence-based recommendations about clinical preventive services such as screenings, counseling services, and preventive medications. All recommendations are published on the Task Force’s Web site and/or in a peer-reviewed journal.

The influential group of health experts recommended that doctors screen all adults for use of illegal drugs, another step toward curbing the epidemic that claims tens of thousands of lives each year.

The U.S. Preventive Services Task Force said that health providers should attempt to determine whether their patients 18 or older are using illicit drugs, including nonmedical use of prescription drugs. But the panel said it did not have enough information to decide whether all adolescents should be screened.

The recommendation is the first time the panel has concluded there is enough evidence to support screening all adults. In 2008, it declined to do so.

The guidance is important because the Affordable Care Act requires that services recommended by the task force be covered free or with very small co-payments. The proposed recommendations are open for public comment until Sept. 9, after which the task force will consider them for final approval.

The panel concluded screening is effective when “services for accurate diagnosis of unhealthy drug use or drug use disorders, effective treatment, and appropriate care can be offered or referred.”

It cited the findings of a 2017 national survey that 11.5 percent of Americans 18 or older were using illegal drugs at the time and data that showed that 8.5 percent of pregnant women aged 18 to 44 had used drugs in the past month.

Among drug users aged 12 and over, 85.3 percent said they used cannabis and 19.5 percent used “psychotherapeutic drugs,” including opioids and other pain relievers.

In 2017, 70,237 people died of drug overdoses in the United States, according to the Centers for Disease Control and Prevention.

The panel suggested several questionnaires, administered by health care providers or taken by patients on their own, that it said were effective in picking up illicit drug use. It warned primary care providers that “screening tools are not meant to diagnose drug dependence, abuse, addiction, or use disorders. Patients with positive screening results may therefore need to be offered or referred for diagnostic assessment.”

It said providers also would have to be aware of state requirements for reporting results to legal authorities.

WCAB Proposes Regulation Changes

The Workers’ Compensation Appeals Board (WCAB) has issued a notice of public hearing regarding proposed additions, amendments and repeals to its Rules of Practice and Procedure (Rules).

The public hearing is scheduled at 9 a.m. on Tuesday, September 24 in Room 7 of the Elihu Harris State Office Building, 1515 Clay Street, Oakland. Members of the public may also submit written comments until 4 p.m. that day.

The purposes of this rulemaking are to organize articles to reflect the order of events in a case, eliminate duplicative rules, break up complex rules, simplify and modernize language of rules for clarity, and create some room between rules so that additional rules can be added in the future without need for decimals.

WCAB’s notice of the proposed rulemaking, the text of the proposed regulations and the initial statement of reasons can be found on its rulemaking page.

Although equal weight will be accorded to oral and written comments, WCAB prefers written comments submitted by email. Comments may be submitted by email to WCABRules@dir.ca.gov or by mail to:

Workers’ Compensation Appeals Board
Attention: Rachel E. Brill, Industrial Relations Counsel
P.O. Box 429459
San Francisco CA 94142-9459

WCAB will consider all timely public comments and encourages all interested members of the workers’ compensation community to participate in this important process.

Few Patients Benefit from Meniscus Surgery

A new study published in the British Journal of Sports Medicine suggests that surgeons are no better at determining which patients might benefit from operations to treat torn knee cartilage than if they just flipped a coin.

Researchers surveyed 194 surgeons to see whether they would recommend surgery or exercise therapy in 20 test cases with middle-aged patients who had tears in the meniscus, the cartilage that works as a cushion between the shin and thigh bones.

Overall, surgeons correctly predicted which patients would benefit from operations only half of the time. And experienced knee surgeons were no better at guessing correctly than other orthopedic surgeons.

These findings offer one reason these knee operations remain common despite a growing body of evidence suggesting many patients don’t benefit, said Dr. Victor van de Graaf, lead author of the study and a researcher at University Medical Centre, Utrecht, in the Netherlands.

“Orthopedic surgeons believe they are capable of identifying which patients may still benefit more from surgery,” van de Graff said by email. “Therefore, our findings may help to further decrease the number of unnecessary performed surgeries.”

During the operation, a surgeon makes a small incision in the knee and inserts a tiny camera called an arthroscope to view the inside of the joint, locate and diagnose the problem, and guide repairs. Sometimes surgeons remove all of the meniscus, and other times they only remove part of it.

While the procedure is minimally invasive, it’s not risk-free. Patients receive anesthesia, which in any surgery may lead to complications such as allergic reactions or breathing difficulties. In addition, this specific procedure might potentially damage the knee or trigger blood clots in the leg.

Among patients who didn’t respond to surgery, only 39% of the surgeons correctly foresaw this outcome. And among patients who didn’t respond to exercise therapy, only 29% of surgeons correctly predicted this outcome.

For patients who did benefit from surgery, surgeons correctly predicted this outcome 60% of the time. And for patients who benefited from physical therapy, surgeons correctly chose this outcome in 72% of cases.

In the same journal, a study published in June went further, concluding that it’s impossible to predict who might benefit from arthroscopic meniscus repair surgery.

Kenneth Pihl of the University of Southern Denmark in Odense and his colleagues built a model based on the real-world outcomes after one year for 641 patients who had undergone the surgery. Out of 18 preoperative factors that surgeons and the medical literature consider predictive of who will benefit, none predicted the actual results for these patients, Pihl’s team found.

Scientists Report Emerging Role of Schwann Cells in Neuropathic Pain

Neuropathic pain is a typically persistent and intractable type of chronic pain. This condition is not a symptom of a disorder but a pathological state caused by a primary lesion or dysfunction in the nervous system. Neuropathic pain caused by nerve injury or disease remains a major challenge for modern medicine worldwide.

It is certainly a challenge in the administration of workers’ compensation claims now that use of opiate medications are on the decline.

A recent review article published this year discusses emerging evidence by integrating recent advances related to Schwann cells and neuropathic pain. Their findings showed that that an improved and extended comprehension of the underlying neurobiological mechanisms of neuropathic pain would allow the development of successful targeted pain therapy.

The role of Schwann cells in pain perception has been further explored this year, and new conclusions were just published this month in the Science Journal. A new organ involved in the sensation of pain has been discovered by these scientists, raising hopes that it could lead to the development of new painkilling drugs.

Researchers say they have discovered that the special cells that surround the pain-sensing nerve cells that extend into the outer layer of skin appear to be involved in sensing pain. The scientists say the finding offers new insight into pain and could help answer longstanding conundrums.

:The major question for us now is whether these cells are actually the cause for certain kinds of chronic pain disorders,” Prof Patrik Ernfors, a co-author of the research from the Karolinska Institute in Sweden, told the Guardian.

The researchers reveal how they examined the nature of cells in the skin that, they say, have largely been overlooked. These are a type of Schwann cell, which wrap around and engulf nerve cells and help to keep them alive.

The study has revealed these Schwann cells have an octopus-like shape. After examining tissues, the team found the body of the cells sits below the outer layer of the skin, but that the cells have long extensions that wrap around the ends of pain-sensing nerve cells that extend up into the epidermis, the outer layer of the skin.

The scientists were surprised at the findings because it has long been believed that the endings of nerve cells in the epidermis were bare or unwrapped. “In the pain field, we talk about free nerve endings that are responsible for pain sensation. But actually they are not free,” Ernfors said.

Employer Supports Surgeries in Foreign Hospitals with US Physicians

The hospital costs of the American medical system are so high that it made financial sense for both a highly trained orthopedist from Milwaukee and Donna Ferguson, a patient from Mississippi, to leave the country and meet at an upscale private Mexican hospital for the surgery. Ferguson gets her health coverage through her husband’s employer, Ashley Furniture Industries.

According to the report in Kaiser Health News, Ferguson is one of hundreds of thousands of Americans who seek lower-cost care outside the United States each year, with many going to Caribbean and Central American countries. A key consideration for them is whether the facility offers quality care.

In a new twist on medical tourism, North American Specialty Hospital, known as NASH and based in Denver, has organized treatment for a couple of dozen American patients since 2017.

Its website proclaims: “The North American Specialty Hospital is committed to providing an exceptional level of quality in healthcare, with pricing that is bundled, transparent, and competitive. NASH accomplishes its mission by tapping into the finest in cross-border resources – from renowned physicians on either side of the border to state-of-the-art facilities. Headquartered in Denver, Colorado, NASH is designed to provide pre-operative and post-operative services throughout the United States, while providing clinical care in Cancun – a city connected by daily, non-stop, and year-round air service from airports located throughout the United States and the entire Western Hemisphere.

Donna Ferguson awoke in the resort city of Cancun before sunrise on a sweltering Saturday in July. She wasn’t headed to the beach. Instead, she walked down a short hallway from her Sheraton hotel and into Galenia Hospital.

A little later that morning, a surgeon, Dr. Thomas Parisi, who had flown in from Wisconsin the day before, stood by Ferguson’s hospital bed and used a black marker to note which knee needed repair. “I’m ready,” Ferguson, 56, told him just before being taken to the operating room for her total knee replacement. For this surgery, she would not only receive free care but would receive a check when she got home.

The cost to her employer, Ashley Furniture Industries, was less than half of what a knee replacement in the United States would have been. That’s why its employees and dependents who use this option have no out-of-pocket copayments or deductibles for the procedure; in fact, they receive a $5,000 payment from the company, and all their travel costs are covered.

Parisi, who spent less than 24 hours in Cancun, was paid $2,700, or three times what he would get from Medicare, the largest single payer of hospital costs in the United States. Private health plans and hospitals often negotiate payment schedules using the Medicare reimbursement rate as a floor.

Parisi, a graduate of the Mayo Clinic, is one of about 40 orthopedic surgeons in the United States who have signed up with NASH to travel to Cancun on their days off to treat American patients. NASH is betting that having an American surgeon will alleviate concerns some people have about going outside the country, and persuade self-insured American employers to offer this option to their workers to save money and still provide high-quality care.

NASH, a for-profit company that charges a fixed amount for each case, is paid by the employer or an intermediary that arranged the treatment.

The American surgeons work closely with a Mexican counterpart and local nurses. NASH buys additional malpractice coverage for the American physicians, who could be sued in the United States by patients unhappy with their results.

Medical tourism has been around for decades but has become more common in the past 20 years as more countries and hospitals around the world market themselves to foreigners.

The high prices charged at American hospitals make it relatively easy to offer surgical bargains in Mexico: In the United States, knee replacement surgery costs an average of about $30,000 – sometimes double or triple that – but at Galenia, it is only $12,000, said Dr. Gabriela Flores Teón, medical director of the facility.

The standard charge for a night in the hospital is $300 at Galenia, Flores said, compared with $2,000 on average at hospitals in the United States.

The other big savings is the cost of the medical device – made by a subsidiary of the New Jersey-based Johnson & Johnson – used in Ferguson’s knee replacement surgery. The very same implant she would have received at home costs $3,500 at Galenia, compared with nearly $8,000 in the United States.

Galenia is accredited by the international affiliation of the Joint Commission, which sets hospital standards in the U.S. But to help doctors and patients feel comfortable with surgery here, NASH and Galenia worked to go beyond those standards.