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Claimant Arrested for Failure to Disclose Correct Medical History

An Adelanto man who claimed he was bitten by a pit bull and injured while working as a cable installer has been charged with felony workers’ compensation fraud.

On March 27, 2008, Dario Rudas-Ortega, 53, reported that he had sustained an injury during the course of his employment. According to Senior Investigator Hector Vidal, Rudas-Ortega claimed he was bitten by a pit bull on his hands and forearms, and later alleged he sustained a left knee injury during the same attack. “Rudas-Ortega is charged with making a false statement in support of this claim for benefits, as well as failing to disclose information regarding his prior medical condition and prior medical treatment to the same body part,” Vidal said. It is alleged that as a result of his false statements and omissions, Rudas-Ortega received workers’ compensation benefits to which he was not entitled.

The case was referred to the San Bernardino County District Attorney’s Worker’s Compensation Fraud Unit in 2012 by the Zenith insurance company, after the company’s internal investigation concluded that false statements were made.Felony charges were filed April 14, 2014 (see attached complaint), and Rudas-Ortega was taken into custody by District Attorney Investigators and transported to West Valley Detention Center in Rancho Cucamonga where he was released on his own recognizance.

If convicted on all counts, Rudas-Ortega faces more than five years in County Prison. Arraignment is scheduled for June 19 in San Bernardino Superior Court. The case is being prosecuted by Deputy District Attorney David Simon of the Workers’ Compensation Insurance Fraud Unit.

DWC Posts RAND Study on ASC Services and Fees

The Department of Industrial Relations (DIR) has released a 102 page report “Ambulatory Surgical Services Provided Under California Workers’ Compensation: An Assessment of the Feasibility and Advisability of Expanding Coverage.”

Senate Bill 863, which was signed into law in 2012, requires DIR to study the feasibility of establishing a facility fee for Medicare’s “inpatient only” procedures performed in Ambulatory Surgery Centers (ASCs) and report its finding to the legislative committees. At present, Medicare does not have a fee schedule for these procedures when performed in outpatient settings.

The study’s key recommendations are to retain current OMFS policies with regard to “inpatient only” procedures performed in an ambulatory setting; and strengthen patient protections when procedures are performed in an ambulatory setting..

1) ASCs that are currently eligible for an Official Medical Fee Schedule (OMFS) facility fee are likely to be equipped to provide services that do not require a one-night stay. However, Medicare has several requirements for patient protection that are not found in the minimum accreditation requirements for physician-owned facilities that are not Medicare certified. These include accepting only patients who are likely to require less than a 24-hour stay, assuring appropriate post-discharge arrangements are made, and providing the patient with written disclosure of any financial interests between the ASC and the physician.

2) Data analyses and review of the literature do not provide strong support for removing any procedures from the “inpatient only” list with the possible exception of procedures related to anterior cervical spinal fusions.

3) Few “inpatient only” procedures are currently being performed in an ASC on either workers’ compensation or privately insured patients ages 18-64, with the exception of spinal instrumentation.

4) Current OMFS policies of prior authorization process for performing an “inpatient only” procedure in an ASC setting, which allows for individual consideration of the anticipated services, other procedures that will be performed during the same encounter, and post-discharge services, before the services are provided are preferable to an across-the-board pricing methodology.

Under current OMFS policies, “inpatient only” procedures are covered as an exception that permits a payer to authorize payment for an “inpatient only” service in an ambulatory setting at an agreed-upon rate when medically appropriate. If any services are to be removed from the “inpatient only” list for WC patients, an OMFS allowance is needed for those services. In this regard, Section 74 of SB 863 requires DIR to consider a fee set at 85 percent of the Medicare fee schedule amount for the service when performed on an inpatient basis.

RAND examined two basic policy alternatives for paying for these procedures in an ambulatory setting. Consistent with SB 863, the first option would be to pay for the ambulatory surgery based on a multiple of the Medicare inpatient rate for the procedures. The second option would be to base the rate on the amounts paid for comparable services under the hospital prospective payment system. It concluded that the less problematic approach would be to build on the current OMFS for outpatient services. The “inpatient only” procedures could be assigned to the most comparable APC.

Painful Injury? There’s an App For That!

Mobile medicine is helping chronic pain patients cope with and manage their condition thanks to new smartphone apps, which can track patients from a distance and monitor pain, mood, physical activity, drug side effects, and treatment compliance.

According to Robert Jamison, PhD, professor of anesthesia and psychiatry at Harvard Medical School and pain psychologist with Brigham and Women’s Hospital, smartphone apps are helping the shrinking ranks of pain specialists treat and monitor rapidly increasing populations of chronic pain sufferers. “Today the ratio is one pain specialist for every 10,000 patients, but mobile technology allows for easy time-effective coverage of patients at a low cost, offering significant opportunities to improve access to health care, contain costs, and improve clinical outcomes,” Jamison explained.

At the American Pain Society annual meeting, Jamison presented results of his research on smartphone apps, developed at Brigham and Women’s, for monitoring pain patients. He found that internet-based cognitive behavioral therapy could significantly decrease pain levels, improve function, and decrease costs compared to standard care.  “Online networks, for example, can promote communication, distraction, information sharing, self expression and social support,” Jamison said.  “We also believe online networks decrease feelings of withdrawn behavior and instill a greater willingness to return for treatment.” Jamison added that electronic diaries maintained by patients are more effective than paper diaries for evaluating pain levels, daily activities, treatment compliance and mood. Jamison said that while few studies have been conducted on text messaging as a pain management tool, texting has proven to be effective for managing patients with diabetes, hypertension, asthma, smoking cessation and weight loss.

In his ongoing research, Jamison is studying 60 patients with chronic cancer and non-cancer pain who use a pain management smartphone app. “We hypothesized that the pain management smartphone app will help providers track patients and reduce emergency department visits and hospitalizations by 50 percent,” said Jamison.

A key feature of the pain management app is daily pain tracking in which patients are asked five questions about their pain, activity interference, sleep, mood, and overall status on a sliding scale of 1 to 10, and compare these with baseline ratings. Should pain ratings significantly increase from baseline or reach 9 or 10, the patient gets an immediate response that the pain specialist has been contacted.  “The pain management smartphone app can deliver non-pharmacological, cognitive behavioral treatment as well as prompt patients to stay active, comply with therapy, and develop pain coping skills,” Jamison reported. He added that the smartphone data can be summarized and transmitted every day into the patient’s electronic medical record.

Jamison noted that the average response rate to text messages to pain patients is 70 to 90 percent and that high responders show improved pain levels.

Katherine Zalewsk Appointed to WCAB

Katherine Zalewski, 51, of Richmond, has been appointed to the California Workers’ Compensation Appeals Board by Governor Brown.

Zalewski has served as chief counsel at the California Department of Industrial Relations since 2012. Immediately prior to her appointment as Chief Counsel, Ms. Zalewski was a Special Advisor in the Division of Workers’ Compensation’s Administrative Director’s office. Prior to that, she was a trial judge in the WCAB’s San Francisco District Office.

Prior to her appointment as a Workers’ Compensation Judge in 2009, Ms. Zalewski represented insurers and self-insured employers in workers’ compensation matters throughout Northern California. She was senior associate at Schmit Law Office from 2000 to 2009 and manager and attorney at Pacific Coast Services from 1998 to 2000 and at Express Network and Direct Legal Support Services from 1993 to 1998. She was an attorney at Kinder and Wuerfel from 1990 to 1993 at Finnegan and Marks from 1988 to 1990 and at Foreman and Brasso from 1986 to 1988.

Ms. Zalewski received her B.A. from the University of California, Berkeley in 1983 and her J.D. from Hastings College of the Law in 1986. This position requires Senate confirmation and the compensation is $131,952. Zalewski is registered to vote without party preference.

Doctors Succeed in Regenerating Muscle Tissue

U.S. doctors said on Wednesday they have succeeded in coaxing the regeneration of muscle tissue lost in people who suffered traumatic injuries, including wartime bomb wounds, with a new type of treatment that uses material from a pig’s bladder. Implanting the pig material at the wound site enticed the patient’s own stem cells – master cells that can transform into various kinds of cells in the body – to become muscle cells and regenerate tissue that had been lost, the researchers said.

According to the report in Reuters Health, the study was small, involving only five male patients, but its results suggested that this procedure could offer new hope to a category of patients, including troops who suffered major war injuries, with scant good treatment options, they added. All five patients, including two U.S. soldiers hurt by bombs planted by insurgents, had badly damaged leg muscles. The research was backed by $3 million in funding over five years from the U.S. Defense Department, said Dr. Stephen Badylak of the University of Pittsburgh, who led the study.

Thousands of American troops have been left with serious physical impairments after sustaining wounds involving major loss of muscle tissue in roadside bombings and other incidents since 2001 in the wars in Iraq and Afghanistan. When a large amount of muscle is lost in vehicle crashes, industrial accidents, bomb blasts or other traumas, the body is unable to replace it and the site forms scar tissue that lacks the functionality of the lost muscle.

Existing treatments include surgery to remove scar tissue or replace it with muscle from somewhere else in the body, but these methods do not yield satisfying results and are hard on patients, the researchers said. “Nothing has ever worked. There’s been multiple things tried: the hype and the hope of stem cell therapy, new surgical techniques,” Badylak said.

This study, published in the journal Science Translational Medicine, demonstrated for the first time the regeneration of functional muscle tissue in people with major muscle loss. “While the number of patients was small, we were very encouraged by the data. And we were seeing very dramatic improvements in quality of life for some of our patients,” added Dr. J. Peter Rubin of the University of Pittsburgh School of Medicine, another of the researchers.

The doctors implanted material from a pig’s urinary bladder called “extracellular matrix” – the non-cellular component including collagen present within all tissues and organs – to serve as scaffolding for the rebuilding of lost muscle mass. This material acted as a “homing device” to recruit existing stem cells in the body to rebuild healthy muscle tissue at the site of the injury, the researchers said.Pig parts have been used for years in surgical procedures. Pig bladder “extracellular matrix” has been used in hernia repair and fixing chest wall defects after cancer removal.

Before trying the procedure in people, the researchers said they successfully tested it in mice with muscle injuries.

DWC and Maximus Schedule Free IBR Webinar

The California Division of Workers’ Compensation (DWC) and MAXIMUS Federal Services invite all interested parties to attend a one-hour webinar on the Independent Billing Review (IBR) process. This webinar is set for May 13, 2014 from 10:00 to 11:00 am. It provides attendees with key information related to the IBR process, including but not limited to an explanation of the current IBR workflow.

Space is limited and pre-registration is required to attend this free meeting. The DWC and MAXIMUS Federal Services will also address questions that relate to the current IBR process during the webinar. Please submit questions in advance via email to IBRHelp@maximus.com. Questions need to be submitted no later than Wednesday, May 7, 2014.

To register for the webinar, click here.

WCRI Report Says California PD Benefit Nearly Lowest in Nation

The voluminous report on state (and Canadian province) workers compensation benefits was issued Wednesday by the Massachusetts-based Workers Compensation Research Institute and the International Association of Industrial Accident Boards and Commissions. While the report covers all cash, medical and therapy benefits, the disparity between California and other states in “permanent partial” disabilities is particularly evident and could fuel the Capitol’s perennial political jousting over workers compensation costs and benefits.

The debate almost always focuses on the “permanent partial” aspect of the multi-billion-dollar, employer-financed program because it is the most prevalent and cumulatively most expensive of the various benefits.

Roughly once a decade, the Legislature overhauls the multi-billion-dollar system, and it last occurred in 2012 as employers and labor unions combined forces. The 2012 bill raised cash benefits but tightened other aspects of the program enough to offset the cost of the benefit increase.

Even so, it set a $290 per week maximum (as of this year) for workers deemed to have “permanent partial” disabilities in California. The new report indicates that it’s lower than those of all but two other states, Alabama and Rhode Island.

“Permanent partial” benefits are as high as $1,441.80 per week in Washington, D.C., and $1,419 in Iowa.

The report is available only by purchase here.

Safety Officer Benefits Extension Bill in Final Legislative Stages

The state Senate on Monday approved a measure that would give families of deceased firefighters and police officers more time to file for workers’ compensation death benefits. This bill provides an extension for dependents of deceased firefighters and peace officers to file for workers’ compensation death benefits if the death resulted from any of the following: cancer, tuberculosis, methicillin-resistant Staphylococcus aureus (MRSA) skin infections, or bloodborne infectious disease. This extension is for up to 420 weeks from the date of injury, but in no case more than one year from the date of death, as specified. This bill requires the extension to sunset on January 1, 2019.

According to the Senate Appropriations Committee, this bill results in an increase in workers’ compensation costs related to state employees who are firefighters and peace officers. The specific state departments that would be impacted are the Department of Forestry and Fire Protection and the California Highway Patrol. The amount of the increase is unknown.

Assemblyman John Pérez (D-Los Angeles) wrote the measure that would give families an extension of 420 weeks from the date of injury but no more than one year from the date of death to file claims.

“The families of fallen public safety officers face an extraordinary emotional and financial toll when they lose a cherished loved one,” said Sen. Anthony Cannella (R-Ceres). “Simply put, AB 1035 is the right thing to do.”

The bill is supported by a host of public employee unions, and opposed by the California Association of Joint Powers Authorities, the California Coalition of on Workers’ Compensation California, the State Association of Counties, the County of Los Angeles, CSAC, the Excess Insurance Agency League of California Cities and the Rural County Representatives of California

Opponents argue that this bill will increase costs on local governments and counties at a time when budgets are limited and the full impact of the 2012 Workers’ Compensation reform is unknown. Opponents also argue that this bill is being considered at the same time as other bills which add to the number of peace officers who qualify for existing presumptions, and that these bills could increase the fiscal impacts of this bill. Opponents also maintain that the recent National Institute of Occupational Safety and Health study only noted increases in some cancers, while the existing workers’ compensation presumption covers all cancers.

The bill now goes back to the Assembly for a vote on amendments. It was backed by public employee unions but opposed by groups such as the League of California Cities and the California State Assn. of Counties.

Gov. Jerry Brown vetoed a similar measure last year, but Cannella said changes have been made to address the governor’s concerns, including a Jan. 1, 2019, sunset date for the extension.

Physician Shortage Prompts Travelers to Expand Nurse Sites

Travelers will more than double its network of patented ConciergeCLAIM(R) Nurse sites to 30 locations across the United States, helping facilitate convenient access to care for injured employees with the personal assistance of a Travelers nurse to guide them through the workers compensation process.

Placing a Travelers nurse in a care provider’s clinic makes it easier for patients to focus on their treatment and return to work, while the nurse helps patients understand the workers compensation system, reviews their diagnosis and treatment plan and assists with referrals and other components of their care regimen.

“Businesses of all sizes face increases in medical expenses as a portion of their overall loss costs, particularly in workers compensation,” said Jim Wucherpfennig, Vice President of Travelers’ workers compensation claim services. “Increased demands on the healthcare system, an aging population and a limited supply of physicians could mean increased time out of work for injured workers because of longer waits to access medical care. The local and responsive nature of the ConciergeCLAIM Nurse program helps employees return to work sooner and reduces employers’ workers compensation-related costs.”

ConciergeCLAIM Nurse is part of Travelers Medical Advantage(SM) . This multifaceted program packages more than a decade of investments in infrastructure, specialized expertise, and data and analytics to effectively manage medical costs for Travelers’ customers across all casualty lines of business, including workers compensation, general liability and auto.

Travelers initially conducted a pilot of the ConciergeCLAIM Nurse program in 2010 and steadily opened additional sites in recent years in order to assess the model’s long-term sustainability and effectiveness. Early results achieved in the first phase of the program were impressive, including a 24 percent quicker return-to-work time for injured employees, a 29 percent increase in the use of network care providers, and five percent reduction in loss costs for employers.

The Association of American Medical Colleges (AAMC) projects that the aging population and influx of newly insured individuals under the Affordable Care Act will contribute to an expected shortage of nearly 92,000 physicians by 2020. Stationing Travelers nurses within local care provider’s clinics streamlines the entire process, from assessing the injury and helping arrange for care on-site within the clinic or with other in-network medical providers, to providing assistance navigating the workers compensation claim process.

Wucherpfenning added, “Helping an injured employee navigate the workers compensation process is a huge benefit. A more personalized approach can help drive better health outcomes and simplify the claim process for both the injured worker and their employer.”

Drobot Sentencing Hearing Set for December

Former Pacific Hospital owner Michael Drobot pleaded guilty on Thursday to federal charges related to his role in a medical fraud scheme that authorities have said may be the largest of its kind in California history. Drobot, who agreed to plead guilty in February, is scheduled to be sentenced in December, according to the story in the Press Telegram.

Federal prosecutors charged Drobot, who lives in Corona del Mar, with conspiracy and paying kickbacks to other doctors in connection with a federal health care program. He faces 10 years in federal prison. As laid out in previous court filings and statements from government officials, Drobot is accused of paying kickbacks of $10,000 to $15,000 to doctors who referred patients to the facility formerly known as Pacific Hospital for spinal surgeries. Drobot paid for the kickbacks by taking advantage of a loophole in California law to overcharge for the reimbursable costs of spinal hardware employed in the surgeries. The activities may have led to as much as $500 million worth of fraudulent claims, mostly filed through the state’s workers compensation system.  As of Thursday, federal officials have not filed charges against anyone else who may have broken the law as part of the conspiracy.

The Drobot case is related to the corruption cases that have been filed against state Sen. Ron Calderon, D-Montebello, and his brother, former Assemblyman Tom Calderon.  Drobot has told federal officials that he bribed Ron Calderon in order to keep on the books the law that made it possible to seek inflated reimbursements for spinal hardware. Calderon, whom the FBI has also accused of taking bribes from agents posing as filmmakers seeking a more favorable tax credit law, has pleaded not guilty to all charges filed against him. Tom Calderon has also pleaded not guilty to charges of conspiracy and money laundering for allegedly helping his brother commit crimes.

Drobot’s attorney, Jeffrey H. Rutherford, could not be reached for comment Thursday. When Drobot pleaded not guilty for procedural reasons last month, Rutherford said his client was cooperating with an expanding federal investigation. “He has acknowledged and accepts responsibility for his actions,” Rutherford said at the time.

Pacific Hospital is now called College Medical Center. Santa Fe Springs-based College Health Enterprises owns the facility and has hired a Molina Healthcare affiliate to operate it.