Menu Close

Highest Paid UCLA Doctor Convicted of Patient Sexual Assaults

The Los Angeles County District Attorney announced that jurors convicted James Mason Heaps M.D., who is now 65, and an obstetrician-gynecologist formerly employed by the University of California, Los Angeles, on five counts in connection with the sexual assaults of some of his patients.

The charges he faced stem from alleged crimes between 2009 and 2018 involving seven of Heaps’ former patients.

Jurors found Heaps guilty of three counts of sexual battery by fraud and two counts of sexual penetration of an unconscious person. He was acquitted on three counts of sexual battery by fraud, three counts of sexual penetration of an unconscious person and one count of sexual exploitation of a patient. Jurors could not reach a unanimous verdict on three counts of sexual battery by fraud, four counts of sexual penetration of an unconscious person and two counts of sexual exploitation of a patient.

At this time, no decision has been made on whether or not to retry the hung counts.

A sentencing hearing was set for November 17 in Department 108 of the Clara Shortridge Foltz Criminal Justice Center.

Heaps served as a gynecologist/oncologist, affiliated with UCLA, for nearly 35 years. At various times, he saw patients at the Ronald Reagan UCLA Medical Center and at his office at 100 Medical Plaza. At one time, Heaps was reportedly the highest paid physician in the UC system and had treated about 6,000 patients, attorneys said.

More than 500 lawsuits were filed against Heaps and UCLA, accusing the school of failing to protect patients after becoming aware of the misconduct.

In May, attorneys for 312 former patients of Heaps announced a $374 million settlement of abuse lawsuits against the University of California. The settlement came on top of a $243.6 million resolution of lawsuits involving about 200 patients announced in February, and a $73 million settlement of federal lawsuits reached last year involving roughly 5,500 plaintiffs.

The lawsuits alleged that UCLA actively and deliberately concealed Heaps’ sexual abuse of patients. UCLA continued to allow Heaps to have unfettered sexual access to female patients – many of whom were cancer patients – at the university, plaintiffs’ attorneys alleged in the suits.

UCLA issued a statement in May saying, “This agreement, combined with earlier settlements involving other plaintiffs, resolves the vast majority of the claims alleging sexual misconduct by James Heaps, a former UCLA Health physician. The conduct alleged to have been committed by Heaps is reprehensible and contrary to our values. We are grateful to all those who came forward, and hope this settlement is one step toward providing some level of healing for the plaintiffs involved.

Settlement of the federal case last year required UCLA to ensure stronger oversight procedures for identification, prevention and reporting of sexual misconduct.

In March 2021 in a similar case, USC agreed to pay more than $1.1 billion to about 17,000 former patients of ex-campus gynecologist George Tyndall, the largest sex abuse payout in higher education history.  

74 year old Tyndall – the only full-time gynecologist at the student health clinic from 1989 until 2016 – has pleaded not guilty to 35 criminal counts of alleged sexual misconduct between 2009 and 2016 at the university’s student health center. He has pleaded not guilty and is free on bond.

Hundreds of women came forward to report their allegations to police but some of the cases fell outside the 10-year statute of limitations, while others did not rise to the level of criminal charges or lacked sufficient evidence to prosecute. Still, he faces up to 64 years in prison if convicted.

Several victims called for criminal charges to be filed against USC administrators who knew of the allegations against Tyndall for decades and did not fire him.

October 17, 2022 – News Podcast


Rene Thomas Folse, JD, Ph.D. is the host for this edition which reports on the following news stories: Fresno Trucking Business Owners Face $2.5M Payroll Fraud Charges. Tustin Doctor Pleads Guilty to Illegally Selling 120K Opiod Pills. Cal/OSHA Investigates Tree Trimmer Death After Fall into Wood Chipper. WCIRB Publishes COVID-19 Workers’ Compensation 2022 Update. DWC Announces Deactivation of Inactive E-Filer Accounts. U.S. DOL Announces Proposed Rule on Worker Classification. Feds Publish Blueprint to Guide Employer Use of AI Technology. NY Times Says Insurers Exploited Medicare for Billions.

New Definition of ‘Close Contact” and “Infectious Period” for COVID

California’s Division of Occupational Safety and Health (Cal/OSHA) Standards Board met on April 21, 2022, and formally approved the third readoption of its COVID-19 Emergency Temporary Standard (“3rd Revised ETS”), by a 6-1 vote.

The ETS has no set rules for close contact exclusion from the workplace. Instead, it requires that employers “review current [California Department of Public Health] guidance” regarding “quarantine or other measures to reduce transmission,” to “develop, implement, and maintain effective policies” to prevent COVID-19 transmission from close contacts.

On October 14, 2022, the California Department of Public Health published an Order which updated the definitions of Close Contact and Infectious Period to provide entities strategies to prioritize response to potential exposures.

“Close Contact” means the following:

– – In indoor spaces 400,000 or fewer cubic feet per floor (such as home, clinic waiting room, airplane etc.), a close contact is defined as sharing the same indoor airspace for a cumulative total of 15 minutes or more over a 24-hour period (for example, three separate 5-minute exposures for a total of 15 minutes) during an infected person’s (confirmed by COVID-19 test or clinical diagnosis ) infectious period.
– – In large indoor spaces greater than 400,000 cubic feet per floor (such as open-floor-plan offices, warehouses, large retail stores, manufacturing, or food processing facilities), a close contact is defined as being within 6 feet of the infected person for a cumulative total of 15 minutes or more over a 24-hour period during the infected person’s infectious period.

Spaces that are separated by floor-to-ceiling walls (e.g., offices, suites, rooms, waiting areas, bathrooms, or break or eating areas that are separated by floor-to-ceiling walls) must be considered distinct indoor airspaces.

Infectious Period is defined as:

– – For symptomatic infected persons, 2 days before the infected person had any symptoms through Day 10 after symptoms first appeared (or through Days 5–10 if testing negative on Day 5 or later), and 24 hours have passed with no fever, without the use of fever-reducing medications, and symptoms have improved, OR
– – For asymptomatic infected persons, 2 days before the positive specimen collection date through Day 10 after positive specimen collection date (or through Days 5–10 if testing negative on Day 5 or later) after specimen collection date for their first positive COVID-19 test.

For the purposes of identifying close contacts and exposures, infected persons who test negative on or after Day 5 and end isolation are no longer considered to be within their infectious period. Such persons should continue to follow CDPH isolation recommendations, including wearing a well-fitting face mask through Day 10.

This Order went into effect on October 14, 2022, at 12:01 a.m.

Following the new CDPH order defining Close Contact and Infectious Period the Cal/OSHA issued a fifteen-day notice with requests for written comments on proposed updated COVID-19 regulations to Title 8 of the General Industry Safety Orders.

Modifications are now proposed by Cal/OSHA for subsection 3205(a)(1) (scope); subsection 3205(b)(1) (definition of “close contact”); subsection 3205(b)(7)(A) (exception to the definition of “exposed group”); subsection 3205(b)(11) (definition of “returned case”); subsection 3205(c)(1) (universal precaution); subsections 3205(e)(1), (e)(2), and (e)(3) (notice of COVID-19 cases); subsection 3205(h)(1) (ventilation); subsection 3205(j) (reporting and recordkeeping requirements); subsection 3205.1(a)(2) (scope); subsection 3205.1(e) (COVID-19 investigation, review, and hazard correction); and subsection 3205.2(g)(2) (COVID-19 cases and close contacts).

Written comments on the Cal/OSHA proposal are invited, but must be received by 5:00 p.m. on October 31, 2022 at the Occupational Safety and Health Standards Board,

PBMs Battle With Several States over State Rights to Govern Them

In 2020, the U.S. Supreme Court unanimously agreed with the arguments in a California-led, bipartisan amicus brief filed by 46 attorneys general, which supported the state of Arkansas’ position that federal law does not prevent states from regulating Pharmacy Benefit Managers PBMs.

Last year California joined a coalition of 34 attorneys general in filing an amicus brief in the U.S. Court of Appeals for the Eighth Circuit supporting North Dakota’s regulation of PBMs.

And on October 18, 2022 the California Attorney General announced joining a coalition of 35 attorneys general in filing an amicus brief in the U.S. Court of Appeals for the Tenth Circuit in support of Oklahoma’s authority to regulate Pharmacy Benefit Managers.

PBMs act as a middleman between pharmacies, drug manufacturers, health insurance plans, and consumers. This position allows them to have a significant impact on consumers’ access to affordable prescription drugs.Over the years, PBMs have expanded into a multi-billion dollar industry.

The California Attorney General claims they have done “nothing to lower the prescription drug prices paid by health plans to drug manufacturers. In response, states like California have increased their regulation of PBMs to protect residents from the rising cost of prescription medications. This regulation is essential because the price consumers pay for pharmaceuticals has continually risen under the oversight of PBMs.”

“Prescription drug spending in the United States has increased year after year. In 2021, the U.S.’s total drug spending grew by 7.7% to $576.9 billion, and it is projected to continue increasing and comprising more of the country’s gross domestic product. Running parallel to this massive increase, the role of PBMs in the industry has expanded over the past 50 years, and PBMs now control nearly every aspect of a health plan’s pharmacy benefits”

The Coalition of 35 attorneys general have filed their amicus brief in the Oklahoma case of Pharmaceutical Care Management Association v Glen Mulready et al., pending in the United States Court of Appeals for the 10th Circuit.

In 2019, the Oklahoma Legislature passed the Patient’s Right to Pharmacy Choice Act to protect Oklahomans’ access to pharmacy providers and protect pharmacies from self-serving practices of PBMs. The new law was soon challenged in court by the Pharmaceutical Care Management Association (PCMA, the PBMs’ trade lobby).

In early April, the U.S. District Court for the Western District of Oklahoma ruled largely in favor of the State of Oklahoma and Insurance Commissioner Glen Mulready in PCMA v. Mulready, upholding most of the Oklahoma statute against a federal preemption challenge.

PCMA appealed that decision to the U.S. Court of Appeals for the Tenth Circuit, asserting that only four of the provisions are preempted by ERISA and Medicare Part D, retreating from the 14 it originally had challenged.

The National Community Pharmacists Association (NCPA), the American Pharmacists Association (APhA) and the National Association of Chain Drug Stores (NACDS), along with American Pharmacies (APRx) and the Oklahoma Pharmacists Association (OPhA), also filed an amicus curiae brief defending states’ rights of Oklahoma to pass and enforce laws protecting patients and community pharmacies from predatory pharmacy benefit manager (PBM) practices.

Lawyers Union Sues California Over How it Hires Lawyers and Judges

The State of California employs attorneys, judges, and other legal professionals in more than 100 state departments, agencies, boards and commissions. The union representing legal professionals employed by California sued the state because too many legal jobs at state departments, agencies, boards, and commissions are allegedly given to retirees rather than to rank-and-file state employees.

Courthouse News reports that California Attorneys, Administrative Law Judges and Hearing Officers in State Employment, or CASE, filed a lawsuit Tuesday in Fresno against the California Department of Human Resources, seeking a ruling that the the state is skirting its own rules when it comes to hiring retirees for positions that statutorily should go to rank-and-file employees. CASE argues that CalHR enjoys broad statutory authority over the employment practices of all state departments, agencies, boards, and commissions.

CASE, which represents about 4,500 legal professionals employed by the state, claims that California relies on so-called retired annuitants to fill jobs because they are cheaper, in so far as the state doesn’t have to pay pension contributions and many employee benefits that can add as much as 64% to the costs of hiring rank-and-file employees, and because they don’t require as much training.

“RAs almost invariably are employed to work at the department from which they retired, and typically served at that department as a rank-and-file employee for many years.” according to CASE. “As a result, RAs do not require any training, any orientation or onboarding, and are generally able to be productive workers from the first day of employment as an RA. As such, departments perceive the use of RAs as more attractive in the short term than hiring and training new employees.”

California currently employs at least 173 persons as retired annuitants in legal positions, distributed amongst at least 50 state departments, the union said.

There are state laws, however, that limit the hiring and reliance on retirees, according to the union. Retired annuitants are supposed to be temporary positions, but the Department of Human Resources has allowed departments to employ them indefinitely, according to the complaint. Departments also can’t hire a retired annuitant until at least 180 days after their retirement, but the department hasn’t enforced this condition either, the union said

In addition, the retiree must have specialized skills needed to perform the jobs for a limited period, according to the union.

CalHR has refused to enforce the requirement that departments show that their RAs have any specialized skills that do not exist among rank-and-file state employees and has refused to enforce the requirement that RAs be employed for only a limited duration,” the union claimed. “CASE seeks to end the unlawful employment of RAs — at least as to attorneys and judges — and obtain from this court an interpretation of state law regarding the proper employment of RAs.”

The union is asking for the court to find that the Department of Human Resources’ interpretation of the meaning of “limited duration” and “specialized skills” is contrary to state law.

A spokeswoman for the Department of Human Resources said she’s unable to comment on pending litigation.The union is represented by Patrick Whalen in Sacramento.

California to End COVID State of Emergency in February

This week Governor Gavin Newsom announced that the COVID-19 State of Emergency will end on February 28, 2023, charting the path to phasing out one of the tools that California has used to combat COVID-19.

This timeline gives the health care system needed flexibility to handle any potential surge that may occur after the holidays in January and February, in addition to providing state and local partners the time needed to prepare for this phaseout and set themselves up for success afterwards.

With hospitalizations and deaths dramatically reduced, California has the tools needed to continue fighting COVID-19 when the State of Emergency terminates at the end of February, including vaccines and boosters, testing, treatments and other mitigation measures like masking and indoor ventilation.

As the State of Emergency is phased out, the SMARTER Plan continues to guide California’s strategy to best protect people from COVID-19.

To maintain California’s COVID-19 laboratory testing and therapeutics treatment capacity, the Newsom Administration will be seeking two statutory changes immediately upon the Legislature’s return: 1) The continued ability of nurses to dispense COVID-19 therapeutics; and 2) The continued ability of laboratory workers to solely process COVID-19 tests.

“California’s response to the COVID-19 pandemic has prepared us for whatever comes next. As we move into this next phase, the infrastructure and processes we’ve invested in and built up will provide us the tools to manage any ups and downs in the future,” said Secretary of the California Health & Human Services Agency, Dr. Mark Ghaly. “While the threat of this virus is still real, our preparedness and collective work have helped turn this once crisis emergency into a manageable situation.”

In February the California Department of Public Health (CDPH) released the California SMARTER Plan: The Next Phase of California’s COVID-19 Response to guide the state’s work on the next phase of the COVID-19 pandemic.

The SMARTER Plan looks at where the state has been, draws on lessons learned from our collective experiences, and lays out a clear path for how California will remain prepared for what COVID-19 might bring next. The essential elements of this plan are:

– – Shots – Vaccines are the most powerful weapon against hospitalization and serious illness.
– – Masks – Properly worn masks with good filtration help slow the spread of COVID-19 or other respiratory viruses.
– – Awareness – We will continue to stay aware of how COVID-19 is spreading, closely track evolving variants, communicate clearly how people should protect themselves, and coordinate our state and local government response.
– – Readiness – COVID-19 isn’t going away, and we need to be ready with the tools, resources and supplies we will need to quickly respond and keep the health care system well prepared.
– – Testing – Getting the right type of tests – PCR or antigen – to where they are needed most. Testing will help California minimize the spread of COVID-19.
– – Education – California will continue to work to keep schools open and children safely in classrooms for in-person instruction.
– – Rx – Evolving and improving treatments will become increasingly available and critical as a tool to save lives.

The latest progress update on the implementation of the California SMARTER Plan was just published this October.

Cross Examination Required in Hearing on Workplace Violence Orders

CSV Hospitality Management LLC (CSV) filed a petition for a workplace violence restraining order against Jermorio Lucas. At the time of the hearing on CSV’s restraining order request, Lucas was living at the Aranda Residence, a residential hotel that provides supportive housing to formerly homeless individuals.

CSV submitted affidavits from four of its employees in support of the petition. The employees alleged that Lucas had been very aggressive and confrontational towards other tenants and Aranda Residence employees. For example, janitors Nelson Yee and Pedro Caamal stated that Lucas frequently subjected them to verbal abuse while they were working. He would also stalk them and take photos and videos of them without their consent. Caamal stated that during one such incident, Lucas forcefully pushed him into a window. Yee reported that Lucas had also confronted him at two local businesses when Yee was off duty.

Lucas filed a response to the petition. He denied all of the allegations against him. He stated that he recalled only one disagreement with Caamal, which involved a dispute over coronavirus social distancing protocols. He complained that Yee had addressed him with a racial slur and had harassed him, frequently watching him when he left the bathroom after showering. He indicated that he took Yee’s photograph in order to complain about him to the property manager.

The trial court granted a temporary restraining order and set the matter for an evidentiary hearing. Both parties were represented by counsel. At the hearing, only Yee and Lucas provided testimony consistent with their affidavits. Lucas then testified, answering questions posed by his attorney. He denied the allegations that Yee had leveled against him, asserting that Yee was harassing him and that he had repeatedly asked Yee to leave him alone.

Lucas’ counsel requested an opportunity to cross-examine Yee and any of the other witnesses. The trial court refused to allow Lucas’s counsel to cross-examine Yee concluding that the hearing was not a court trial, and there was no authority to allow cross-examination at such a hearing. The trial court then granted a three-year workplace violence restraining order. Lucas appealed, and the Court of Appeal reversed and remanded in the published case of CSV Hospitality Management v. Lucas – A163345 (October, 2022).

Code of Civil Procedure Section 527.6 authorizes a person who has suffered harassment to obtain an injunction to prevent further harassment. Section 527.8, subdivision (a) provides the same right to an employer for any employer, whose employee has suffered unlawful violence or a credible threat of violence from any individual, that can reasonably be construed to be carried out or to have been carried out at the workplace.

Injunctive proceedings under section 527.8 are intended to parallel those under section 527.6, which are procedurally truncated, expedited, and intended to provide quick relief to victims of civil harassment.

However, the Court of Appeal went on to say that although “injunctive proceedings under section 527.8 are truncated, respondents are still afforded the right to present their case.”

In the context of civil harassment orders, our courts have observed that “the procedure for issuance of an injunction prohibiting harassment is self-contained. There is no full trial on the merits to follow the issuance of the injunction after the hearing provided by Code of Civil Procedure section 527.6, subdivision (d). That hearing therefore provides the only forum the defendant in a harassment proceeding will have to present his or her case. To limit a defendant’s right to present evidence and cross-examine as respondents would have us do would run the real risk of denying such a defendant’s due process rights, and would open the entire harassment procedure to the possibility of successful constitutional challenge on such grounds.”

The workplace violence restraining order was reversed. The trial court was directed to issue an order terminating the restraining order, reinstating the prior temporary restraining order and setting the matter for a new hearing within the time period proscribed under section 527.8.

Sutter Health Pays $13M for Billing for Lab Tests it Did not Perform

Sutter Health, a Sacramento-based health care services provider, and its affiliate Sutter Bay Hospitals, agreed to pay more than $13 million to settle allegations that it violated the False Claims Act by billing the United States for toxicology screening tests performed by outside labs.

The United States contends in the civil settlement agreement signed by Sutter Health that under the terms of a contract which the Sutter Health hospital Alta Bates Summit Medical Center entered into with Navigant Network Alliance, LLC, Navigant referred urine toxicology specimens obtained from physicians and laboratories across the country to Sutter. Sutter submitted bills, or caused bills to be submitted, for reimbursement of the qualitative and quantitative testing it performed on the specimens.

The United States asserts that Sutter did not perform the quantitative testing on thousands of specimens referred under the agreement and that these quantitative tests were instead performed by third-party labs. The United States alleges that Sutter nevertheless sought reimbursement for the tests.

In the settlement agreement, the United States contends that between August 1, 2016, and June 30, 2017, Sutter billed for urine toxicology tests it did not perform and was paid for the testing by the Federal Employees Health Benefits Program, Medicare, Medicaid, and Tricare.

Sutter agrees in the settlement agreement to pay $13,091,452 to settle the false claims allegations. Of that amount, Sutter has already paid more than $6.5 million to the United States. Sutter agrees to pay the remaining amount of approximately $6.5 million to the United States within 30 days. The settlement agreement resolves the civil law claims that the United States might have brought based upon these allegations.

The matter is the result of a coordinated investigation between the U.S. Attorney’s Office for the Northern District of California and the FBI, OPM OIG, HHS-OIG, DCIS, and the DHA.

The investigation and resolution of this matter illustrate the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The civil settlement agreement is neither an admission of liability by Sutter Health nor a concession by the United States that its claims are not well founded.

NCCI Reports WC Medical Costs Increasing Less Than Inflation

The National Council on Compensation Insurance (NCCI) published the first of four installments in its series on inflation and workers compensation medical costs. It explores price and utilization trends in medical services, and how each contributes to workers compensation costs in the four US geographical regions. This article also provides state-specific results.

An updated Consumer Price Index (CPI) for All Urban Consumers in August 2022 increased by 8.3 percent over the previous 12 months. This raises the key question “How is the current inflationary environment affecting WC medical costs? In short, “it’s complicated.” The NCCI article explores this question by showing how different types of medical services contribute to countrywide (CW)1 and regional WC medical cost trends. Its key observations include:

– – Medical inflation in WC has been moderate for the past decade. But with the recent dramatic rise in consumer prices, concerns have emerged about medical inflation rising at similar levels.
– – Two factors drive changes in medical claims costs: the price of medical services and utilization, which measures the mix and number of services provided to an injured worker.
– – NCCI’s most recent medical data shows that drug costs are declining, physician costs are up slightly, and facility costs are rising in the WC system.
– – In recent years, facility services are the dominant contributor to changes in WC medical costs across regions – most prominently in the Southeastern region.

Between 2012 and 2021, countrywide WC medical costs increased at 2% per year. The Southeastern and Midwestern regions grew the fastest at 2.3% and 2.0%, respectively. The other regions, Northeastern and Western, saw overall medical costs per claim growing at a slower average annual rate of 1.5% and 1.4%, respectively.

The regional comparison charts indicate that, in all four regions, the WC paid medical trends have been increasing at a slower pace than the corresponding regional CPI-M indexes. This is particularly the case in the Northeastern and Western regions.

WC medical costs in the Northeastern and the Southeastern regions each increased by an estimated 3%, while the Western and Midwestern regions increased by 2% and 1%, respectively. Every region except the Midwestern region had a slightly larger increase in 2021 WC medical costs relative to those observed between 2012 and 2019.

Future installments will expand on each of the different types of medical services discussed here – physicians, facilities, and prescription drugs. Subsequent articles in the series will include more in-depth regional differences in cost changes, and details about the make-up of the underlying services.

Staffing Problems Plague Labor Commissioner’s Wage Theft Efforts

California’s laws targeting wage theft – which is the failure by bosses to pay workers what they are owed – make it a leader among states, according to national labor experts. But in practice, enforcing those laws has not been easy.

Just last year, legislators made certain instances of wage theft a felony. They also fixed their sights on wage theft in the garment industry, eliminating some longstanding pay practices that often resulted in workers being paid below the minimum wage.

But State officials and lawmakers say the Labor Commissioner’s office, the California agency overseeing wage and hour violations, has been too short-staffed to do its job, a problem that worsened during the pandemic and subsequent labor shortage.

Last year alone California workers filed nearly 19,000 individual claims totaling more than $338 million in stolen wages. Many claims take three times longer than the legal minimum of 135 days to resolve, data provided by the Labor Commissioner’s office show.

According to the report by CalMatters, nearly a third of the Labor Commissioner’s positions were vacant in May, officials told a state Senate budget committee. In August, a spokeswoman for the Labor Commissioner’s office told CalMatters the office had hired 288 people since January 2021, but not how many people had left the office during that period.

The Labor Commissioner’s budget this year is $166 million, enough funding for nearly 840 positions.

Experts and legislators say California’s bureaucratic hiring processes and below-market salaries are complicating its hiring efforts.

When it comes to recruiting workers “it’s three strikes against them right now, just the government in general,” said Patrick Murphy, director of resource equity and public finance at The Opportunity Institute, a nonprofit that studies poverty and racial inequality in California. “It’s the nature of government, the tight labor market, and then the specialization that goes with these jobs.”

The state’s hiring and retention issues at agencies enforcing labor laws have existed for years. The Little Hoover Commission, California’s bipartisan oversight agency, studied wage theft in 2015 as part of an investigation of California’s underground economy.

The study found that state investigators across agencies are paid less than those in police forces and often require more training and education. The state’s hiring process for such jobs can take up to a year, the report found, making hiring frustrating for all parties.

We’re just not a competitive employer,” said Krystal Beckham, a project manager with the commission who led the study. “You can see that when it comes to enforcement in the underground economy.”