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100% Awards Increasing with VR Experts

WCAB panel decisions are more frequently approving total disability awards based upon vocational rehabilitation experts. The trend seems to be an erosion of reliance upon the AMA Guides as was the intent of SB 899 when it passed in 2004.

In this new illustrative panel decision, Craig Hanus sustained injuries to his left shoulder, neck, low back and neurological system on November 15, 2014 while employed as a heavy equipment mechanic by URS / AECOM Corporation

Subsequently, in 2015, Hanus obtained a job at Northrup Grumman as a painter. He only lasted six hours before his “body shut down” as it had done when he tried to return to work for his prior employer.

Hanus testified at trial that when he stopped working for Northrup Grumman, he had pain in his hands, arms, shoulders, back, legs, headaches, and “shooting pain in his ears” that would sometimes go to his eyes and affect his eyesight. He currently has pain “everywhere,” has balance problems, and uses a cane to prevent falling. Following left shoulder surgery, he cannot raise his left arm above shoulder level (the court observed his left hand shaking when he lifted it that far) and cannot grip or grasp things in his left hand.

Applicant was seen by a vocational evaluator, Roderick Stoneburner, in October 2017. Mr. Stoneburner’s evaluation and found that he was untrainable and I 00% disabled

After trial WCJ found that Hanus sustained 100% permanent disability, without apportionment, as a result of his admitted November 15, 2014 industrial injury to his left shoulder, neck, low back and neurological system while employed as a heavy equipment mechanic by URS/ AECOM Corporation. The petition for reconsideration by the employer was denied in the panel decision of Hanus v URS/AECOM Corporation.

Defendant contested the WCJ’s finding that applicant is permanently totally disabled, an contended that applicant cannot rebut the 2013 permanent disability rating schedule using methods approved for rebutting the 2005 rating schedule. Defendant further argues that the vocational evidence does not rebut the rating schedule, since the vocational expert used impermissible factors, failed to consider the apportionment determination of the orthopedic Qualified Medical Evaluator and made unsubstantiated assertions that applicant was incapable of sedentary work.

In response the WCAB concluded that “To the extent the WCJ’s finding that applicant is permanently totally disabled is based upon applicant’s work restrictions, as the WCJ discusses in the last paragraph of page 5 of his Report, we note that the rating of permanent disability is not determined by measuring work restrictions, but rather, by reference to the rating of the whole person impairment under the appropriate sections of the AMA Guides.”

“Here, we find the descriptions of the extent of applicant’s impairments which are caused by his industrial injury in the medical reports of Dr. Doty, Dr. Patrick and Dr. Germanovich, as referenced and considered by the vocational expert, Mr. Stoneburner, support the WCJ’s finding that·applicant is permanently totally disabled.”

Fresno Orthopedist Practicing with Suspended License

The Fresno Bee reports that the Medical Board of California has accused a Fresno orthopedic surgeon of practicing medicine on a suspended license.

In an amended accusation filed July 20, the board said it suspended the license of Dr. John P.S. Janda on June 1, 2017, but he continued to see patients in his medical office, including issuing prescriptions and performing examinations.

Janda met with a medical board probation inspector on June 27, 2017, and acknowledged that his medical license was suspended. But according to the accusation, Janda examined a patient’s back and knee in his office on August 2017, and reviewed blood test results with another patient he saw on Sept. 1, 2017.

The board said Janda back-dated prescriptions “so that the prescriptions appeared to have been issued prior to the date of his suspension.” And the doctor “told his patients to say, if asked, that they were at his office only to get their medical records,” the board said. Latest news by email

According to the June 2017 interim suspension order, Janda, then 65, had a history of three syncopal events (brief loss of consciousness) Feb. 21 and Sept. 5, 2013 and Nov. 20, 2014 – all occurring while he was performing surgery. The board said Janda last performed orthopedic surgery on Nov. 20, 2014.

In a prior action against Janda, the medical board revoked his medical license on Oct. 16, 2015, for gross negligence and repeated negligent acts in his care of two patients. But the revocation was stayed and he was placed on three years of probation with numerous conditions.

The board now is petitioning to remove Janda’s probation, saying he has failed to timely complete a clinical training program and he has failed to complete a “comprehensive fitness for duty neuropsychological evaluation” by a Physician Assessment and Clinical Education Program doctor.

Revoking Janda’s probation would result in his license being revoked.

Janda could not be reached for comment about the amended accusation and petition to revoke his probation. He has not had a hearing or been found guilty of any charges. The accusation does not name an attorney as a representative of the doctor, but a Sacramento lawyer represented Janda in prior actions before the board. The lawyer did not return messages left at his law office.

August 20, 2018 Edition


Rene Thomas Folse, JD, Ph.D. is the host for this edition which reports on the following news stories: WCAB Invalidates AD Dispute Resolution Regulation, Jury Awards $289M to Injured Groundskeeper, Court Denies Peyman Heidary Indictment Appeal, CDI Has 57 Unfilled Fraud Investigator Jobs, Opioid 2019 Production “Quotas” Reduced 10%, Cal/OSHA Fines Advertising Company $32K, Express Scripts to Market $1M Genetic Pill, AI Accurately Diagnoses 50 Eye Conditions, MRI Scans – Maybe Not So Safe After All, Industrial Auto Accidents are Increasing.

Lack of “Animus” Evidence Defeats FEHA Claim

Elliott Galindo worked for the City of Los Angeles as cement finisher in the City’s Department of Public Works, Bureau of Street Services.

In 2004, Galindo suffered a work-related back injury and did not return to full duty as a cement finisher until 2006. In 2008 he suffered another back injury and was off work for almost a year while his worker’s compensation claim was pending.

In 2009 he was given permanent work restrictions including “Limited to light duty only. He cannot perform any type of strenuous work. He should avoid lifting greater than 10 lbs, avoid repetitive bending, . . . avoid repetitive twisting, and avoid unusual body positioning for his spinal condition.”

Galindo confirmed that the medical work restrictions were accurately stated. He believed he could nonetheless perform his job as a cement finisher if he was given a “lead man” role, “less hands on.” He declined to be considered for another job classification, declined transfer to a lower-wage position, and said he was not aware of any equipment or devices that could assist him in completing his regular job duties.

Numerous interactive process meetings were held by the City. At the first, he asked to be returned to his position as a cement finisher. The City asked him to complete a City employment application identifying all of his work qualifications so that he could be considered for other modified duties or classifications. Additional meetings took place with similar results.

By 2011 a disability retirement was approved by LACERS. Subsequently there were additional interactive process meetings after he was retired.  Essentially Mr. Galindo asked to return to work as a cement finisher and declined to consider other work. Ultimately he filed a claim of discrimination with the DFEH, obtained a right to sue letter and filed a civil complaint.

While his civil action was pending, in 2015 LACERS asked for three medical examinations to re-evaluate his disability retirement. All three doctors reported that he could return to work as a cement finisher without restrictions. By May, 2015 he returned to work as a cement finisher without restrictions.

The City moved for summary judgment in September 2015 which was granted and the case dismissed. The court of appeal affirmed the dismissal in the unpublished case of Galindo v City of Los Angeles.

The City presented undisputed evidence that it was at all times constrained by work restrictions issued by the Workers’ Compensation Division. In order to prevail on a claim of disability discrimination, an employee must show that the employer took the adverse employment action with a discriminatory animus. The employee cannot simply show that the employer’s decision was wrong or mistaken, since the factual dispute at issue is whether discriminatory animus motivated the employer, not whether the employer is wise, shrewd, prudent, or competent.

CWCI Studies Polypharmacy Claims

The use of pharmaceuticals is an important component of healthcare, including in the treatment of injured workers, but interactions between drugs are always a concern and should figure prominently in medication management.

This is especially true given that recent research has shown that concurrent use of multiple medications (polypharmacy) to treat one or multiple medical conditions has become prevalent, with up to 10 percent of the U.S. population and up to 30 percent of older adults taking five or more drugs simultaneously.

The risks are particularly high when opioids or other controlled substances are part of the drug mix, underscoring the importance of utilization review and other forms of clinical oversight.  Because of these risks, polypharmacy has generated concern across healthcare systems, including worker’s compensation.

This CWCI study uses 2016 – 2017 prescription data to measure the prevalence of polypharmacy in California workers’ compensation and to identify the types of drugs included in polypharmacy prescribing. For the purposes of this study, claims with five or more concurrent medications during the two-year study period were defined as polypharmacy claims. Among the key findings:

– Twenty-four percent of claims with at least one dispensed drug during calendar years 2016 and 2017 had three or more different prescription drugs concurrently dispensed.
– The likelihood that indemnity was paid on a claim increased with the number of concurrent prescriptions. About half (51. 6 percent) of the claims with one to two prescription drugs were indemnity cases versus 91.3 percent of those with five or more concurrent drugs.
– Polypharmacy claims tend to be older, with 21.5 percent of polypharmacy claims being at least 10 years old, compared to 6.0 percent of the non-polypharmacy claims.
– Claims involving back conditions without spinal cord involvement (including sprain and strain injuries) account for the highest proportion of polypharmacy claims (21.3 percent).
– A high proportion of the polypharmacy claims involve older workers, with more than half (52.3 percent) of the polypharmacy claims involving injured workers who were 50 years of age or older versus 38.3 percent of the claims with fewer concurrent medications.
– Analgesic opioids and anti-inflammatories were the top two therapeutic drug groups when three or more drugs were concurrently prescribed.
– The combination of opioids, anti-inflainmatories and muscle relaxants accounted for the highest proportion of three-drug combinations (4.5 percent).

CWCI has issued its polypharmacy study in a Research Note, “An Examination of Polypharmacy Claims in California Workers’ Compensation,” which has additional data, graphics and analyses.

Opioid 2019 Production “Quotas” Reduced 10%

The Department of Justice and U.S. Drug Enforcement Administration have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years.” The new proposal decreases manufacturing quotas for the six most frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount.

The Notice of Proposed Rulemaking marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.

On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability to consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.

In setting the aggregate production quota, DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.

The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl.

Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.

Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.

When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.

The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.

In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.

Cal/OSHA Fines Advertising Company $32K

Cal/OSHA has issued citations to an outdoor advertising company for serious safety violations after a worker suffered third-degree burns when a metal pole he was using to install a sign on a billboard came into contact with an overhead power line.

On February 6, two sign hangers for Outfront Media were working 25 feet above ground on the billboard’s platform to install a vinyl sign over West 3rd Street. The workers were using 11-foot poles to place the 14-by-48-foot sign. One of the metal poles touched an energized high-voltage power line located near the edge of the billboard, which resulted in serious burns to 25 percent of the sign-hanger’s body.

Cal/OSHA issued three citations to Outfront Media totaling $32,435 in proposed penalties. A serious accident-related citation was issued for the employer’s violation of provisions for preventing accidents due to proximity to overhead lines, which requires a minimum clearance of 6 feet be maintained for work done near 34.5 kilovolt lines. A serious citation was issued for failure to identify and evaluate hazards related to installing signs on billboards in proximity to power lines. Cal/OSHA also issued a general citation to the employer for an inadequate heat illness prevention plan for its outdoor workers.

Since 2015, Cal/OSHA has opened 11 inspections with outdoor and display advertising employers. Among those inspections were six accidents, including an electric shock incident last year when a worker’s ladder came into contact with overhead power lines during preparations to hang a sign.  

A citation is classified as serious when there is a realistic possibility that death or serious harm could result from the actual hazard created by the violation.

Cal/OSHA offers a fact sheet for safety meetings on working safely on or near high voltage overhead lines. Cal/OSHA’s Consultation Services Branch provides free and voluntary assistance to employers to improve their safety and health programs. Employers should call (800) 963-9424 for assistance from Cal/OSHA Consultation Services.

Court Denies Peyman Heidary Indictment Appeal

Former chiropractor Peyman Heidary allegedly owned and oversaw a network of medical clinics to generate fraudulent billings to workers’ compensation and insurance carriers.

As a non-attorney, he also allegedly controlled the day-to-day operations of various law firms, including California Injury Lawyers.He allegedly controlled or directed hiring and firing, legal decision making, and income flow to and from the law firm. Codefendants Cary Abramowitz, a lawyer, and Ana Solis allegedly assisted Heidary in these operations.

Heidary also allegedly formed and controlled several health clinics in Southern California. Each was staffed by front and back room support staff for scheduling and basic medical services .

Included were chiropractors operating as primary treating physicians, allegedly providing blanket, cookie-cutter services to each patient at Heidary’s direction and making as many medical specialist referrals as possible. Despite their qualifications, they also wrote medical legal reports using Heidary’s templates, the most expensive report in workers’ compensation.

Medical doctors, or specialists, allegedly provided blanket treatment and medlegals on Heidary’s orders. Billings were made in each provider’s name, and payments were made to their accounts. However, Heidary required fee-splitting and he was the only one allowed to withdraw funds. Heidary also had the doctors sell their accounts-receivables (AR) to him, which he then sold to third parties.

Under the alleged fraud scheme, injured workers appeared at the law firm, which would fill out boilerplate paperwork and, on Heidary’s order, direct the workers to one of his clinics to begin treatment. At the clinic, the workers underwent treatments, regardless of need, such as massage, chiropractic, acupuncture, psychiatric and other services. After the maximum number of visits, they were discharged regardless of medical status.

A Riverside County grand jury returned an indictment against Heidary and his codefendants Cary Abramowitz, Ana Solis, and Gladys Ross. The criminal defendants filed a demurrer, and later a motion to dismiss this indictment, challenging in part whether they had received notice of the charges and whether the indictment improperly aggregated multiple acts into single counts. The trial court denied both requests. Heidary appealed.

The Court of Appeal summarily denied the petition on August 8, 2017. On October 11, 2017, the California Supreme Court intervened directing the Court of Appeal to address these issues. After this ordered review, the trial court ruling was affirmed by the Court of Appeal in the published case of Heidary v Superior Court.

Petitioner argues that the insurance fraud counts do not state specifics as to any single act, but aggregate claims of fraudulent acts by individual insurer, one insurer per count.

The Court of Appeal reviewed the indictment, the grand jury transcript, and exhibits submitted to the grand jury. The People took the testimony of the insurers’ fraud managers, or their representatives (such as in-house data analysts or third-party managers who collected the data for the responses), before the grand jury to walk through the spreadsheets and explain the data within them.

The reviewed materials meet the simplified California pleading rules and the due process requirements.

The Court concluded by noting “To the extent that petitioner continues to claim that the indictment, along with the grand jury transcript and exhibits, does not provide him notice of the charges against him, the court can only conclude that it is because petitioner is turning a blind eye while advancing his argument. Between the indictment, the contents of the thorough and detailed grand jury transcript, and the exhibits presented to the grand jury and contained in the record (including the record here), due process has been satisfied and petitioner has been given adequate notice of the charges against him. ”

CDI Has 57 Unfilled Fraud Investigator Jobs

Ask Steve Poizner about how he’ll tackle health care costs if he recaptures his old job as California’s insurance commissioner, and he has a ready example.

Last year, he said, in a single fraud case involving bogus “medicated” creams and unnecessary urine tests, a Beverly Hills couple was charged with defrauding 27 health insurers out of $40 million.”That’s just the tip of the iceberg,” said Poizner, a Silicon Valley businessman. “Then there’s all of the fraud that never gets reported.”

Poizner held the office from 2007 to 2011 as a Republican but now is running as an unaffiliated candidate, and has made fighting fraud a centerpiece of his health care agenda.

He argues that the health industry may be forfeiting billions of dollars because the state insurance department’s fraud division is understaffed: 57 investigator jobs, or 24 percent, are unfilled.

Ultimately, that inflates health care costs and puts patients in harm’s way, he said.

“These vacancy rates are critical to fill,” Poizner said. “The less health care fraud there is, the better the quality of the health care system.”

Poizner is sounding a very different note from his Democratic opponent, state Sen. Ricardo Lara, who says reducing health care costs requires a broad transformation of health care, not just chasing criminals.

Lara, who co-authored the controversial single-payer legislation that stalled last year, said he believes health care costs will drop if people have coverage instead of postponing care until it is most urgent and expensive. “If we can get everyone comprehensive primary care, that’s a good way to start,” Lara said.

The insurance commissioner oversees car, property and some health insurance plans. Rooting out illegal activity is part of the job.

Industrial Auto Accidents are Increasing

Although there has been an overall decline in workers’ compensation claims, the frequency of claims for motor vehicle accidents (MVA) has increased in recent years.

According to the National Council on Compensation Insurance (NCCI) in a new report, these accidents can be very severe and are responsible for a significant portion of fatal workers’ compensation claims.

“While workers compensation claims have been declining, motor vehicle accidents have been on the rise over the last five years,” said Jim Davis, author of the paper and NCCI director and actuary. “These often involve very serious injuries that can take their toll on injured workers and their families.” An MVA claim is 12 times more likely to result in a fatality than a non-MVA claim.

NCCI actuaries found that from 2011 to 2016, the frequency of all claims declined by 17.6 percent, while the frequency of MVA claims increased by five percent. Additionally, 41 percent of fatal workers’ compensation claims were the result of a motor vehicle.

As expected, certain classifications, which are predominantly based on the use of motor vehicles, such as truckers, taxi drivers, and salespersons, generate the majority of MVA claims.

According to the workers’ compensation rating organization, motor vehicle accident claims cost 80 percent to 100 percent more than the average claim because they involve severe injuries. These claims also tend to represent a higher share of the costliest claims. Over a five-year period, motor vehicle claims accounted for 28 percent of workers’ compensation claims above $500,000, versus just five percent of all claims.

While numerous factors may explain the rise in accidents, the NCCI report notes that it is “striking how the increasing popularity and use of smartphones coincides with this growing trend” of motor vehicle accidents. By the end of 2010, approximately 27 percent of all cell phones were smartphones but by the end of 2016, that figure had tripled to 81 percent, the report notes.

According to a publication by the National Safety Council, a minimum of 27% of crashes involve drivers talking and texting on cell phones. However, the report also states that “there is strong evidence to support that underreporting of driver cell phone use in crashes is resulting in a substantial underestimation of the magnitude of the public safety threat.”

The increase in motor vehicle accidents is not limited to workers’ compensation. NCCI found a similar pattern in the general population, with accidents generally increasing over the same time period, along with an increase in the number of traffic accident fatalities.