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Tag: 2018 News

Scientists Re-generate Wound Tissue

Scientists at the Salk Institute have developed a technique to directly convert the cells in an open wound into new skin cells. The approach relies on reprogramming the cells to a stem-cell-like state and could be useful for healing skin damage, countering the effects of aging and helping us to better understand skin cancer.

“Our observations constitute an initial proof of principle for in vivo regeneration of an entire three-dimensional tissue like the skin, not just individual cell types as previously shown,” says Salk Professor Juan Carlos Izpisua Belmonte, holder of the Roger Guillemin Chair and senior author of the new paper, published in the journal Nature on September 5, 2018. “This knowledge might not only be useful for enhancing skin repair but could also serve to guide in vivo regenerative strategies in other human pathological situations, as well as during aging, in which tissue repair is impaired.”

Cutaneous ulcers — wounds that can extend through multiple layers of the skin — are typically treated surgically, by transplanting existing skin to cover the wound. However, when the ulcer is especially large, it can be difficult for surgeons to graft enough skin. In these cases, researchers are able to isolate skin stem cells from a patient, grow them in the lab and transplant them back into the patient. However, such a procedure requires an extensive amount of time, which may put the patient’s life at risk and is sometimes not effective.

Izpisua Belmonte and Salk Research Associate Masakazu Kurita, who has a background in plastic surgery, knew that a critical step in wound recovery was the migration — or transplantation — of basal keratinocytes into wounds. These stem-cell-like cells act as precursors to the different types of skin cells. But large, severe wounds that have lost multiple layers of skin no longer have any basal keratinocytes. And even as these wounds heal, the cells multiplying in the area are mainly involved in wound closure and inflammation, rather than rebuilding healthy skin.

Izpisua Belmonte and Kurita wanted to directly convert these other cells into basal keratinocytes — without ever taking them out of the body. “We set out to make skin where there was no skin to start with,” says Kurita.

The researchers first compared the levels of different proteins of the two cell types (inflammation and keratinocytes) to get a sense of what they’d need to change to reprogram the cells’ identities. They pinpointed 55 “reprogramming factors” (proteins and RNA molecules) that were potentially involved in defining the distinct identity of the basal keratinocytes. Then, through trial and error and further experiments on each potential reprogramming factor, they narrowed the list down to four factors that could mediate the conversion to basal keratinocytes.

When the team topically treated skin ulcers on mice with the four factors, the ulcers grew healthy skin (known as epithelia) within 18 days. Over time, the epithelia expanded and connected to the surrounding skin, even in large ulcers. At three and six months later, the generated cells behaved like healthy skin cells in a number of molecular, genetic and cellular tests.

The researchers are planning more studies to optimize the technique and begin testing it in additional ulcer models. “Before going to the clinic, we have to do more studies on the long-term safety of our approach and enhance the efficiency as much as possible,” says Kurita.

Surveillance Convicts Nursing Assistant

Holly Merrill-Miller pled no contest to misdemeanor workers’ compensation fraud. The Honorable Lawrence Brown sentenced Miller to 3 years probation and ordered her to pay $8,382.31 in restitution.

Holly Miller was a 33-year-old nursing assistant with Sutter Health when she allegedly suffered an injury to her wrist.

On September 22, 2015, she claimed a patient grabbed her hand, twisted it and repeatedly jerked it, causing pain and swelling.

Miller was placed on restricted duty by the treating physician, but she complained her pain was getting worse.

Images were taken, which didn’t show an obvious injury. However, Miller continued to complain of increased pain and stress. After canceling several medical appointments, she was returned to work.

In November 2015, surveillance was conducted on Miller which showed her using her right hand without any apparent limitations or pain.

When the treating physician saw the video surveillance, he stated it was at odds with what Miller stated she could and could not do. Miller reiterated her complaints. The physician explained he had seen surveillance videos of her activity levels and was returning her to work with no restrictions.

This case was investigated and prosecuted by the District Attorney’s Insurance Fraud Unit

Person Behind Opioid Epidemic Patents Addiction Treatment

A former president of Purdue Pharma, the controversial drug manufacturer widely considered to have ignited the opioid epidemic through its aggressive marketing of OxyContin, has been awarded a patent for a new opioid addiction treatment. Dr. Richard Sackler is one of the six individuals on the patent issued in January, the Financial Times first reported Friday.

Critics expressed concern that Sackler, whose family is worth an estimated $13 billion largely from Purdue’s sale of opioid painkillers, now stands to profit further from medication that treats addiction to the very drugs peddled by his family.

The patent covers a new formulation of buprenorphine in a wafer form. The medication is shown to help people struggling with opioid addiction, and the Food and Drug Administration has already approved the drug in tablet and film form.

Sackler, who served as Purdue’s president from 1999 to 2003, was instrumental in pushing OxyContin’s sales through one of the largest pharmaceutical marketing campaigns in history. The campaign worked: Doctors previously averse to prescribing opioids for pain management due to their addictiveness were convinced by Purdue’s aggressive tactics that OxyContin was safe to prescribe.

Purdue later admitted that its marketing campaign was a sham.

The company was ordered to pay $635 million after it and three top executives pleaded guilty to misleading doctors about the addictiveness of OxyContin and its potential for abuse between 1996 and 2001. Put into perspective, the fine represents less than one-quarter of the sales revenue OxyContin generated for the Sacklers during that six-year period.

Purdue’s legal woes are far from over. The company is currently facing over 400 lawsuits from cities across the country in addition to 26 lawsuits by state attorneys general for downplaying the risks of OxyContin as part of an allegedly fraudulent marketing scheme to boost sales of OxyContin

Purdue has denied the allegations in the lawsuits and has recently taken steps to address the opioid crisis it helped create. The company has backed safer prescribing practices and announced Wednesday it’s contributing $3.4 million to a company developing a low-cost emergency medication for suspected opioid overdoses.

New Study – Why Do Some Feel More Pain?

Ever wonder why some people seem to feel less pain than others? A study conducted at Wake Forest School of Medicine may have found one of the answers-mindfulness.

“Mindfulness is related to being aware of the present moment without too much emotional reaction or judgment,” said the study’s lead author, Fadel Zeidan, Ph.D., assistant professor of neurobiology and anatomy at the medical school, part of Wake Forest Baptist Medical Center. “We now know that some people are more mindful than others, and those people seemingly feel less pain.”

The study is an article in press, published ahead-of-print in the journal Pain.

The researchers analyzed data obtained from a study published in 2015 that compared mindfulness meditation to placebo analgesia. In this follow-up study, Zeidan sought to determine if dispositional mindfulness, an individual’s innate or natural level of mindfulness, was associated with lower pain sensitivity, and to identify what brain mechanisms were involved.

In the study, 76 healthy volunteers who had never meditated first completed the Freiburg Mindfulness Inventory, a reliable clinical measurement of mindfulness, to determine their baseline levels. Then, while undergoing functional magnetic resonance imaging, they were administered painful heat stimulation (120°F).

Whole brain analyses revealed that higher dispositional mindfulness during painful heat was associated with greater deactivation of a brain region called the posterior cingulate cortex, a central neural node of the default mode network. Further, in those that reported higher pain, there was greater activation of this critically important brain region.

The default mode network extends from the posterior cingulate cortex to the medial prefrontal cortex of the brain. These two brain regions continuously feed information back and forth. This network is associated with processing feelings of self and mind wandering, Zeidan said.

“As soon as you start performing a task, the connection between these two brain regions in the default mode network disengages and the brain allocates information and processes to other neural areas,” he said.

“Default mode deactivates whenever you are performing any kind of task, such as reading or writing. Default mode network is reactivated whenever the individual stops performing a task and reverts to self-related thoughts, feelings and emotions. The results from our study showed that mindful individuals are seemingly less caught up in the experience of pain, which was associated with lower pain reports.”

The study provided novel neurobiological information that showed people with higher mindfulness ratings had less activation in the central nodes (posterior cingulate cortex) of the default network and experienced less pain. Those with lower mindfulness ratings had greater activation of this part of the brain and also felt more pain, Zeidan said.

“Now we have some new ammunition to target this brain region in the development of effective pain therapies. Importantly this work shows that we should consider one’s level of mindfulness when calculating why and how one feels less or more pain,” Zeidan said. “Based on our earlier research, we know we can increase mindfulness through relatively short periods of mindfulness meditation training, so this may prove to be an effective way to provide pain relief for the millions of people suffering from chronic pain.”

Ortho AME to Serve 7 Years for Child Pornography

A former Oakland orthopedic surgeon, and once popular AME, John D. Warbritton, III, was sentenced to 7 years in prison for transportation of child pornography.

Warbritton was a graduate of Harvard Medical School in 1980, and had an office at Frank Ogawa Plaza in Oakland. He surrendered his medical license on April 7, 2017, after the California Medical Board accused him of sexually harassing two of his workers’ compensation patients.

The DWC said Warbritton was one of 20 medical providers it recently suspended from participating in the workers’ compensation system.

The criminal indictment, which was filed on Oct. 13, 2016, alleges that Warbritton violated federal law by knowingly transporting child pornography. He was initially released on an unsecured bond.

But, after the United States Pretrial Services officer reported a violation of his conditions of release (possessing child pornography images on a mobile phone), the Honorable Magistrate Judge Elizabeth D. Laporte held a bail review hearing on January 17, 2017, and detained Dr. Warbritton. He was placed in the Santa Rita Jail.

Last May, he filed a Motion to Reopen his Detention Hearing. His lawyers claimed that “At the time of the alleged offense conduct and the subsequent pretrial release violation in this matter, Dr. Warbritton was suffering from both opioid use disorder and sexual impulsivity disorder.” They claim he subsequently began treatment with Carolyn Ann Schuman, M.D. for his opioid addiction, and that “his incarceration ultimately allowed him to “dry out” from the use of opioids and allowed the Suboxone treatment employed by Dr. Schuman to take effect.”

Prosecutors opposed the Motion claiming “defendant has been a hands-on offender because the defendant was arrested after returning to the United States from Thailand, where he admitted to agents he has spent long periods of time for the last several years” And among the child pornography taken from him by authorities, “one photo collage depicted the defendant along with an Asian female aged 8-10 years old. ….This photograph collage also raises concerns about whether the defendant may be a hands-on offender or someone who was preparing to do so.”

Prosecutors concluding by saying there are no conditions of release that could reasonably assure the safety of the community. Warbritton remains in custody awaiting trial.

Warbritton ultimately pleaded guilty to the child pornography charge on May 16, 2018. According to his plea agreement, in 2016, Warbritton traveled from Bangkok, Thailand, to San Francisco International Airport with electronic devices containing child pornography. Specifically, Warbritton was traveling with a laptop and a cellular telephone, both of which contained images depicting children under the age of 12 engaged in sexually explicit conduct.

The plea agreement describes some of the images that were on the devices, including depictions of grown men engaged in sexual acts with girls under the age of 12. Warbritton stipulated that between 150 and 300 images of child pornography were on his electronic devices as he traveled to SFO.

In addition to the prison term, Judge Breyer also ordered Warbritton to serve a seven-year term of supervised release to begin after the prison term ends.

DIR Reports IMR Efficiently Resolves Disputes

The Department of Industrial Relations and its Division of Workers’ Compensation posted a progress report on the department’s Independent Medical Review (IMR) program.

IMR is the medical dispute resolution process that uses medical expertise to obtain consistent, evidence-based decisions and is one of the most important components of Senate Bill 863, Governor Edmund G. Brown Jr.’s landmark 2012 workers’ compensation reform.

“This shows that Independent Medical Review – which replaced a system where injured workers had to wait for medical treatment while disputes were litigated – continues to provide a timely, efficient process for resolving treatment disputes and supporting appropriate care,” said George Parisotto, DWC Administrative Director.

Maximus Federal Services has been the Independent Medical Review Organization (IMRO) since the program’s inception in 2013 and is under contract to provide IMR through 2019.

In 2017, the IMRO processed 248,251 applications, a slight decrease from 2016. Concurrently, the IMRO issued 172,194 IMR determinations.

At the end of 2016, the average length of time the IMRO took to issue a determination, after the receipt of all necessary medical records, was 15 days. By mid-2017, this decreased to a monthly average of 11 days.

Overall, the IMRO overturned 8.3% of the utilization review decisions that denied treatment requests made by physicians treating injured workers.

Analysis of several variables, including the geographic region of the injured worker, the time elapsed since the worker’s work-related injury occurred, and representation by an attorney or other entity acting on behalf of the injured worker, shows similar rates of overturned case decisions.

As in the previous three calendar years, requests for pharmaceuticals in 2017 comprised nearly half (42.6%) the issues in dispute, with opioids the most common drug class (29.3%). Diagnostic tests, including radiology, imaging, and pathology, were the second-most-requested treatment category (16.2%).

Rehabilitation services – such as physical therapy, chiropractic, and acupuncture – were the third-most-requested category (14.1%).

The treatment category most often overturned was evaluation and management (with a 16.3% overturn rate), which includes specialist consultations and dental services, followed by behavioral and mental health services, which had an overturn rate of 16.3%.

Enhancements that may aid the IMR program continued in 2017. Updates to the Medical Treatment Utilization Schedule (MTUS) included several updated and new chapters as well as the adoption of a formulary. The Division of Workers’ Compensation (DWC) introduced its second online Physician Education Module.

Today’s report, as well as previous reports on IMR data, are posted on DWC’s IMR webpage under IMR program updates

WCIRB Quarterly Update – Mostly Good News

The WCIRB has released its quarterly update on California statewide insurer experience valued as of March 31, 2018. Highlights of the report include:

California written premium for the first calendar quarter of 2018 is $5.0 billion, which is consistent with the written premium reported for the first calendar quarter of 2017. The decrease in 2017 following 7 consecutive years of increases is primarily driven by decreases in insurer charged rates.

The projected industry average charged rate per $100 of payroll for policies incepting between January 1, 2018 and March 31, 2018 is $2.38, which is 6% below the average rate charged for policies incepting in 2017. The July 1, 2018 approved advisory pure premium rates are on average 37% below those for January 1, 2015.

The projected combined ratio for 2017 is 5 points higher than 2016 as premium levels have lowered while average claim severities increased moderately. Despite the recent increase, combined ratios for 2014 to 2017 remain the lowest since the 2004 through 2006 period.The WCIRB projects the ultimate accident year combined loss and expense ratio for 2017 to be four points above that for accident year 2016, driven by higher medical severities for 2017 and lower premium rates.

Indemnity claim frequency increased by 11% from accident year 2009 to accident year 2014, but has decreased by 5% from accident year 2014 through the first three months of accident year 2018. Indemnity claims continue to settle quicker, steadily improving over the last 5 years. Frequency increases since 2011 have largely been attributed to increases in cumulative injury claims and claims from the Los Angeles Basin area.

Cumulative trauma (CT) claim rates continue to be at high levels in 2016 and the ratio of CT claims to all indemnity claims has increased by over 65% since 2005. The sharp increase in CT claims since 2012 is in the Los Angeles and San Diego areas, as CT claims in other regions of CA have decreased. The WCIRB will be publishing a study of CT claim patterns later this year.

Projected claim severity for 2017 is 2.5% higher than that for 2016, following several years of relatively flat severities. Severity growth over the last several years has been relatively modest as increases in average indemnity and ALAE costs have been in part offset by declines in average medical costs.

Indemnity severity increases in 2014 are largely attributable to SB 863 increases to PD benefits. Indemnity severity growth since 2014 has been relatively modest and generally consistent with wage inflation.

Decreases in medical severities from 2011 to 2015 were driven by the medical cost savings arising from SB 863. It is unclear whether the projected 2017 medical severity increase of 3% will develop downward like other recent years or if it represents a return the more typical rates of post-reform medical inflation.

Pharmaceutical costs per claim decreased 70% from 2012 to 2017. These reductions have been driven by SB 863’s IMR & IBR, reduced utilization of opioids, and changes to Medi- Cal reimbursement rates. The new drug formulary effective in 2018 is expected to further reduce pharmaceutical cost levels.

SB 1160 and AB 1244 made changes to lien filings effective 1/1/2017. Some of the lien activity in the fourth quarter of 2016 through the first quarter of 2017 may be impacted by the transition to the reforms. The number of liens filed since the first quarter of 2017 are 40% below pre-SB 1160 and AB 1244 levels.

The full report is available in the Research section of the WCIRB website (wcirb.com) and linked below:

Six L.A. Garment Contractors Fined $.5 Million

The Labor Commissioner’s Office has cited six garment contractors $573,704 for labor law violations after uncovering a scheme where the contractors illegally operated under one license to avoid compliance. Four of the contractors did not have valid workers’ compensation coverage for their employees.  Shared use of a garment manufacturing registration is illegal.

The Labor Commissioner’s Office discovered that most of the 57 employees at the contractors’ building downtown on South Broadway worked up to 65 hours a week for less than minimum wage. Two workers, ages 15 and 16, were operating industrial sewing machines in violation of California’s child labor laws.

The Labor Commissioner’s investigation began in July after receiving a lead from the Garment AB 633 Unit. Investigators visited the worksite, operating under the name Pure Cotton, Inc. Owner Kyung Ho Choi told them he collected rent but was not involved in the making of garments. His brother-in-law, Kuong Chan Kim, claimed that all of the workers were employed by his company, Union Supply, Inc., which was registered as a garment manufacturer. Further investigation revealed four other garment manufacturing contractors were operating in the building without garment licenses or workers’ compensation insurance. Kim charged each contractor a fee for the use of his license and insurance coverage, which concealed the actual number of workers.

The Labor Commissioner’s Office issued stop work orders to the four contractors operating illegally under the Union Supply, Inc. license and their inventory was confiscated. They were cited for violating wage statement and garment registration provisions, and failure to cover employees with workers’ compensation insurance.

– Cindy Soon Yun, with 20 employees, was cited $118,600. She was also cited for violating child labor laws.
– Sun Park, with 10 employees, was cited $158,855.
– Pil Chang, with 8 employees, was cited $37,450.
– Francisco Tecum Son, with 4 employees, was cited $18,000.
– Union Supply, Inc., with 15 employees, was cited $240,300.
– Pure Cotton, Inc., which has no employees, was cited $500.

The Labor Commissioner’s Office is currently pursuing wage theft investigations of the contractors.

The Garment Manufacturing Act of 1980 requires that all industry employers register with the Labor Commissioner and demonstrate adequate character, competency, and responsibility, including workers’ compensation insurance coverage. Garment manufacturers who contract with unregistered entities are automatically deemed joint employers of the workers in the contract facility. Clothing confiscated from illegal operations cannot be sold, and will be donated to non-profit organizations in the Los Angeles area.

The Labor Commissioner also administers a special wage claim adjudication process for garment workers pursuant to California’s AB 633, passed in 1999. This law provides not only an expedited process for garment workers to file wage claims but also provides a wage guarantee where garment manufacturers are responsible for wage theft at their contractors’ facilities.

2018 Drug Prices Fell 5.8% in Second Quarter

U.S. drug prices fell again in the second quarter of 2018, likely due to a new tactic insurers are using to limit financial assistance drugmakers provide directly to consumers, according to research firm Sector and Sovereign Research (SSR).

Reuters reports that real U.S. drug prices, which includes discounts and rebates drugmakers provide to insurers and pharmacy benefit managers (PBMs), fell 5.8 percent in the quarter, compared with a 0.7 percent increase a year earlier, SSR analyst Richard Evans said in a research note on Tuesday. That is in line with how far prices fell in the first quarter, he said.

But lower “real” drug prices means drugmakers are receiving less revenue on sales, but does not necessarily translate into savings for patients as employers and payers are more likely to reap the benefit.

Evans believes “copay accumulator” programs, which effectively force drug companies to continue to assist patients with their copays, were to blame for the declining real drug prices.

“Unless manufacturers adapt their copay support programs fairly drastically, net price declines may worsen in 2019,” Evans said.

Gilead Sciences Inc, Eli Lilly and Co, Novo Nordisk and GlaxoSmithKline Plc made the largest contribution to the real drug price decline in the quarter, according to the report.

In recent years, insurers have tried to guide patients toward less expensive treatments by making them pay a higher portion of a drug’s costs. Drugmakers responded by raising the financial aid they offer in the form of “copay assistance” cards – similar to a debit card – that reduce consumer costs at the pharmacy.

PBMs, which manage prescription drug coverage for large U.S. employers, say these payments shield consumers from drug costs, making it easier for manufacturers to raise prices. Insurers have to make up the difference.

Many PBMs introduced the copay accumulator approach for their corporate customers this year. The programs prevent copay card funds from counting toward a patient’s required out-of-pocket spending before insurance kicks in on expensive specialty drugs.

Major pharmaceutical companies are trying to limit the damage from the tactic. Still, most large drug companies did not address the issue of copay accumulators during conference calls to review second quarter results. Amgen Inc and Eli Lilly played down the effect the programs were having their own bottom lines.

Evans said he believes more employers will add the programs next year. A recent survey of large corporate employers by the National Business Group on Health showed that around 25 percent of respondents already had copay accumulator programs in place, and another 3 percent will be adding them next year. An additional 21 percent is considering the programs for 2020 or 2021, the survey found.

Cal Chiropractic Association Sues One Call Medical

The California Chiropractic Association, filed a lawsuit in the San Francisco Superior Court on August 31, against One Call Care Management and Align Networks, Inc. claiming that the defendants engaged in “acts of unfair competition.” It seeks an injunction against the alleged practices, and money damages.

The California Chiropractic Association (CalChiro) was established in 1928, and is a Sacramento-based statewide, nonprofit organization of chiropractic doctors and allied industries. CalChiro is comprised of 27 districts and three student chapters. CalChiro is governed by a board of directors elected by its 2,200 members.

One Call Medical, Inc. is a New Jersey corporation that lists with its principal place of business in Jacksonville, Florida. Align Networks, Inc. was acquired by One Call in 2013 and is also a Florida corporation, and a subsidiary and division of One Call. One Call establishes provider networks for the workers’ compensation community.

According to the allegations of the complaint One Call “is known in the industry as a “cost containment” firm. In essence, One Call is nothing more than a for-profit “middleman” in California’s workers’ compensation system. OCM operates as an unlicensed network broker, contracting, on the one hand, with the payors of workers’ compensation services, including workers’ compensation insurers, self-insured employers and third party administrators, to handle the scheduling and payment of treatment visits for injured workers, and, on the other hand, with the health care professionals who provide health care services to injured workers at the deeply discounted rates imposed by OCM.”

They go on to allege that One Call “generally pays its contracted chiropractors significantly below what chiropractors would be paid under the 2018 California Official Medical Fee Schedule (“OMFS”) for workers’ compensation treatment services.”

However, the complaint alleges that “unlike traditional PPO arrangements, injured workers are not simply free to select a health care provider from among the contracted health care professionals. Rather, OCM assigns injured workers to the provider of OCM’s choosing, thus further ensuring it maximizes its revenue by assigning these injured workers to the providers who have acquiesced to the deepest discounts.”

But then the plaintiffs allege that One Call illegally keeps most of the difference in the reduced fee. They allege for example, “assume OCM agrees to provide all the services one of its client’s injured workers need for 10% less than the OMFS for workers’ compensation treatment services; that is, the client agrees to pay OCM 90% of the OMFS for workers’ compensation treatment services for treatment services needed by its employees and insureds. If OCM then pays its contracted chiropractor 50% of the OMFS, OCM would retain 40% of the OMFS for its management services – nearly as much as the chiropractor received for the provided chiropractic treatment.”

This scheme, according to the allegations of the plaintiffs “violates California’s Unfair Competition Law, Cal. Bus. & Prof. Code §§ 17200, et seq. (“UCL”), as well as the numerous California laws that prohibit Defendants from engaging in illegal payment schemes, prohibiting referral systems for workers’ compensation treatment services that are directly tied to financial incentives, prohibiting Defendants from operating without the required authorizations as a physician network service provider, claims administrator or claims adjustor, and otherwise interfering with the health care services being provided to injured workers by their chiropractors.”

One Call and Align have 30 days to answer or otherwise respond to the allegations of the complaint.