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Tag: 2022 News

SCOTUS to Consider Controversy Over Workers’ Comp Cannabis

Two Minnesota workers’ compensation cases have been elevated to the Supreme Court of the United States, that may determine the outcome of controversy over conflicting state and federal law on the use of medical cannabis in workers’ compensation claims.

The Minnesota Supreme Court ruled late last year that both workers comp claims were invalid because of marijuana’s Schedule I status under the federal Controlled Substances Act.

In the first case, Susan Musta filed a petition with the U.S. Supreme Court in November after her state’s highest court determined that the CSA did, indeed, mean her employer did not need to provide reimbursement for medical cannabis after she was injured at her place of work, a dental center. Her case before SCOTUS is Susan K. Musta, Petitioner v.Mendota Heights Dental Center, et al. (No. 21-676).

And the Minnesota Supreme Court made the same judgment in another case where Daniel Bierbach was injured at his job working for an all-terrain vehicle company and sought compensation for medical marijuana. His case is Daniel Bierbach, Petitioner v. Digger’s Polaris, et al. (No. 21-998).

The issue presented in both cases is whether the Controlled Substances Act preempts an order under a state workers’ compensation law requiring an employer to reimburse an injured employee for the cost of medical marijuana used to treat a work-related injury.

Filings in both cases were distributed on February 2 for a Supreme Court conference that was scheduled on February 18. The justices are now seeking input on the issue from the Biden administration, as the February 22, 2022 entry on the both dockets reads “The Solicitor General is invited to file a brief in this case expressing the views of the United States.”

Congress recently has prohibited the U. S. Department of Justice from impeding state medical marijuana programs. Specifically, in appropriations bills since 2014, Congress consistently has barred DOJ from expending funds to “prevent” States “from implementing their own laws that authorize the use, distribution, possession, or cultivation of medical marijuana.” E.g., Consolidated Appropriations Ac t, 2021, Pub. L. No. 116- 260, § 531, 134 Stat. 1182, 1282-83 (2020) (App. 109a).

Minnesota authorized the use of marijuana for medical purposes in 2014 with the Medical Cannabis Therapeutic Research Act. Under the Cannabis Act, the Minnesota Department of Health administers a program that permits certain registered patients to possess marijuana for medical purposes.

The Minnesota Supreme Court reasoned in both cases that the CSA preempted an order obligating an employer to reimburse an employee for the cost of medical cannabis because compliance with that order would expose the employer to criminal liability under federal law for aiding and abetting unlawful possession of cannabis.

State supreme courts are divided  on whether the CSA preempts an order under a state workers’ compensation law requiring an employer to reimburse an injured employee for the cost of medical marijuana used to treat a work-related injury.

The supreme courts of Maine and Minnesota have held that the CSA preempts an order under their States’ workers’ compensation laws requiring reimbursement for medical marijuana. See Bourgoin v. Twin Rivers Paper Co. , 187 A.3d 10, 12 (Me. 2018); and Musta v. Mendota Heights Dental Ctr. , 965 N.W.2d 312, 327 (Minn. 2021); and Bierbach v. Digger’s Polaris, 965 N.W.2d 281, 282 (Minn. 2021)

But the supreme courts of New Hampshire and New Jersey have reached the opposite conclusion with respect to their States’ medical marijuana laws. See Appeal of Panaggio, 260 A.3d 825, 835, 837 (N.H. 2021); and Hager v. M&K Constr., 247 A.3d 864, 887, 889 (N.J. 2021).

These decisions manifest a mature split of authority that typically warrants review by the U.S. Supreme Court.

U.S. Supreme Court Justice Clarence Thomas recently took issue with the government’s inconsistent stance on cannabis. In a statement issued in June, after the court declined to take up a tax case centered on cannabis, Thomas criticized the government’s approach as “contradictory” and “unstable.”.

“Once comprehensive, the Federal Government’s current approach is a half-in, half-out regime that simultaneously tolerates and forbids local use of marijuana,” he wrote.

First Prison Inmate Pleads Guilty in $25M EDD Fraud

Daryol Richmond, 31, a Kern Valley State Prison inmate pleaded guilty to conspiracy and aggravated identity theft charges for his role in a $25 million unemployment insurance fraud scheme during the COVID-19 pandemic,

According to the plea agreement, Richmond obtained the personal identifying information for other individuals, including inmates and non-inmates, without their authorization. He then provided this information to his co-conspirators inside and outside of prison through emails and jail calls.

The co-conspirators then filed applications for unemployment insurance with the California Employment Development Department (EDD) that falsely stated that the inmates, minor children, and others previously worked as clothing merchants, handymen, and other jobs, and recently became unemployed because of the COVID-19 pandemic. In the plea agreement, Richmond acknowledged that he was responsible for $1.4 million worth of the fraudulent claims.

Richmond is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Sept. 19, 2022. He faces up to 20 years in prison and a $250,000 fine for the conspiracy charge. He also faces a mandatory, additional two years in prison for the aggravated identity theft charge. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables.

Charges are pending against the other defendants in this case: Telvin Breaux, 29, an inmate at the California Correctional Institution in Tehachapi; Holly White, 30, of Los Angeles; Cecelia Allen, 33, of Downey; Fantasia Brown, 33, of Los Angeles; Tonisha Brown, 28, of Los Angeles; Fantesia Davis, 32, of Victorville; and Shanice White, 28, of Hawthorne.

This case is the product of an investigation by the Federal Bureau of Investigation, California Department of Corrections and Rehabilitation, EDD, and Department of Labor Office of Inspector General. Assistant U.S. Attorney Joseph Barton is prosecuting the case.

25% of Healthcare Workers Likely to Leave Workforce

Delivery of healthcare services is a critical factor in the administration of workers’ compensation claims. However, a recent poll shows that there might be trouble ahead, and staffing challenges to deliver quality care.

New USA Today-Ipsos research finds that workers in the American healthcare sector are resilient in the face of two years of the pandemic.

However, this survey also finds numerous warning signs of the ongoing strain these workers are experiencing, with half reporting they are burned out and almost a quarter thinking about leaving the field in the near future.

Additionally, optimism among these workers has declined relative to Spring 2021 – as the vaccine was rolling out – as people in the healthcare field widely disapprove of how the rest of the country has handled the pandemic.

The large majority of healthcare workers report being satisfied with their jobs, only slightly down from findings in a Spring 2021 KFF/WP poll.

– – Four in five (80%) of healthcare workers report being somewhat or very satisfied with their current job, down slightly from the 89% saying the same in a Spring 2021 Kaiser Family Foundation/Washington Post poll.
– – Three quarters (73%) agree with the statement “I love working in healthcare”.
– – A majority report feeling “hopeful” (59%), “motivated” (59%), or “optimistic” (56%) about going to work. However, the number saying hopeful (to 59% from 76%) or optimistic (to 56% from 67%) is down compared to last year.

However, there are warning signs about the resiliency of workers in the healthcare sector after two years of the pandemic.

– – About half (52%) report feeling “burned out”, on par with the 2021 numbers (55%).
– – Over a third (39%) report agreeing with the statement “the American healthcare system is on the verge of collapse”.
– – A third either disagree (16%) or don’t know how they feel (18%) regarding if they could pick a career over again, “I would still decide to go into health care”.
– – A quarter of healthcare workers (23%) say they are likely to leave the field in the near future.

These are some of the findings of an Ipsos poll conducted between February 9-16, 2022 based on a nationally representative probability sample of 1,170 healthcare workers ages 18 or older.

And the American Nurses Association reports that by 2022, there will be far more registered nurse jobs available than any other profession, at more than 100,000 per year. With more than 500,000 seasoned RNs anticipated to retire by 2022, the U.S. Bureau of Labor Statistics projects the need for 1.1 million new RNs for expansion and replacement of retirees, and to avoid a nursing shortage.

SEIU Accuses HCA Healthcare of Medicare Fraud

One of the nation’s largest unions has taken aim at America’s largest hospital operator, HCA Healthcare, for practices that “maximize profits at the expense of patient care, working conditions, and responsible corporate behavior” including “apparent Medicare fraud,” the union says. The basis for that last, most explosive claim: HCA’s unusually high emergency room admission rates.

According to the story in Fortune, the allegations, leveled in a 45-page investigative report published last week by Service Employees International Union (SEIU), are based on the organization’s analysis of Medicare data and lawsuits filed by whistleblowers and health professionals against HCA.

That analysis found the company has had an average emergency department admission rate that exceeded the national average by more than 5% between 2014 and 2019 (the most recent data available). In some states, including Texas and California, HCA’s average ER admission rate is 10% higher than the state average. Inpatient admissions receive higher Medicare reimbursement rates, and so the pattern raises concerns, says SEIU, that those higher admission volumes are driven by “corporate efforts to boost their profits” and “without respect to medical need.”

In a statement to Fortune, HCA rejected SEIU’s conclusions.

SEIU’s accusations come at a time when American households continue to struggle with the world’s highest medical costs – with bills for unexpected hospital stays among the biggest pain points – and when unnecessary hospitalizations present a particular health danger.

They also echo past allegations of wrongdoing by hospitals.

Similar trends were observed at for-profit hospital operators Community Health Systems (CHS) and Health Management Associates (HMA) before drawing scrutiny and government investigations during the past decade.

A 2012 investigation by 60 Minutes revealed that HMA (since acquired by CHS) gave its physicians admission targets to hit, for example. Both companies settled false claims charges with the government over those allegations of improper Medicare billing; neither company admitted wrongdoing. (HCA also has a history of settlements with the Department of Justice over alleged fraud.)

While a 5%-higher-than-average admission rate may seem trivial, SEIU contends it enabled HCA to bring in “over $1 billion in excess Medicare payments” in five years. Given HCA’s presence in 20 states, and the consistency of the trend – state by state, the SEIU found HCA’s average admission rate exceeded the state average in all but one – the report’s authors argue the patterns can’t be coincidental.

Vaxx Wars Heat Up as Kern County Recruits 4K Unvaxxed LA Sheriffs

The Guardian reports that a sheriff’s department in southern California is encouraging law enforcement officers who oppose vaccine mandates to “take back [their] freedom” and apply for jobs with the department.

The Kern county sheriff’s office released a video last week inviting applications from deputies within Los Angeles county, where officials passed an order that could lead to the termination of thousands of county workers who haven’t received the Covid-19 vaccine or provided a religious or medical exemption.

Drive north, we have a place for you – Kern county is a community that backs the blue,” the minute-long ad says as country singer George Strait sings The Weight of the Badge, a song paying tribute to police.

Covid-19 vaccination rates inside the LA sheriff’s department have lagged far below that of the public with just 54% of workers fully vaccinated, despite a vaccination mandate for county employees. Last week the county board of supervisors moved to shift vaccine mandate enforcement power away from LA county Sheriff Alex Villanueva. Villanueva, who has criticized mask orders and said he will not fire workers who refuse the vaccine, said such an act could lead to more than 4,000 unvaccinated deputies losing their jobs.

The sheriff’s office in Kern county, a deeply conservative expanse located immediately to the north of Los Angeles, responded with its video the next day. “So take back your freedom, and APPLY today to work at the Kern county sheriff’s office. You deserve a job that welcomes you and your values, with open arms.”

The battle over vaccine mandates for law enforcement in southern California highlights the divide over Covid health rules across the state. Vaccination rates continue to lag in more rural and conservative regions of California, where 70% of all residents are vaccinated.

Kern county doesn’t require vaccinations for its workers. Its sheriff, Donny Youngblood, said in a press conference on Friday that he doesn’t know how many of his department’s deputies are vaccinated. Just 52% of Kern county residents are vaccinated, compared to 70% of LA county residents, according to the New York Times.

“There’s a substantial number of deputies that already work here that aren’t vaccinated,” he said. “I have no idea [how many] and don’t care,” Youngblood said at the press conference.

Though vaccination rates among law enforcement across the state have trailed behind the statewide rate, Youngblood said Kern county specifically wanted to target LA deputies. “The reason we reached out specifically to LA is there will be 4,000 deputy sheriffs if this were to happen that have real families have real children have real bills that could be unemployed because they refuse to take the vaccination.

As Los Angeles County residents face rising crime and rising numbers of homelessness, Sheriff Alex Villanueva is speaking out against what he describes as a political push fueled by police activists to lay off 4,000 department employees of the sheriff who have not been vaccinated against the coronavirus.

“This is nothing but a power grab by the board. And it’s shameful, and it’s going to harm public safety,”

WCIRB Releases Multi-Bureau COVID-19 Analysis

The Workers’ Compensation Insurance Rating Bureau of California, in collaboration with a number of other workers’ compensation rating bureaus, has released the COVID-19’s Impact on Workers’ Compensation report.

This benchmarking analysis included representation from the following WC bureaus: California, Delaware, Indiana, Michigan, Minnesota, New Jersey, North Carolina, Pennsylvania, Wisconsin and the National Council on Compensation Insurance (NCCI).

This multi-bureau collaboration allowed for the creation of a COVID-19 claims database, which enabled the development of a more comprehensive view of COVID-19 claim characteristics and trends.

Key findings in the report include:

– – In California, COVID-19 claims represent 9 percent of total claim counts and 6 percent of total incurred losses.
– – Indemnity-only claims emerged as a significant share of reported COVID-19 claims.
– – In aggregate, COVID-19 claims that remained open have relatively higher case reserves due to the uncertainty of COVID-19 infections, later than average accident dates and the timing of the various waves of the pandemic.
– – COVID-19 indemnity claims closed more quickly than non-COVID-19 indemnity claims, partly driven by the large share of indemnity-only claims.
– – Despite the higher closure rate, the ratio of paid to paid plus case (incurred) severities on COVID-19 claims is lower when compared with that for non-COVID-19 claims.

And a new COVID workers’ compensation claim study has just been published in the February issue of the Journal of Occupational and Environmental Medicine. The objective of the study was to examine the attributes associated with long duration COVID-19 workers’ compensation claims.

To meet this objective, a study was conducted on 13,153 COVID-19 WC claims accepted by a workers’ compensation insurance carrier between Jan 1, 2020 and November 30, 2021. The authors summarized their findings as follows:

1) Ninety five percent of accepted WC claims were closed within the study period;
2) Five percent of claims had 30-days or longer of lost time accounting for 65% of total paid WC costs;
3) Medical costs increased 8-fold once paid days lost crossed the threshold of 60 -days or greater;
4) Age was the strongest risk factor associated with increased WC costs and prolonged impairment.

The authors concluded by saying “Age at the time of infection was the major factor associated with prolonged impairment and high costs of COVID-19 related WC claims.”

Expect Increases in Telemedicine and Healthcare Digitization Fraud

Hogan Lovellls published a synopsis of federal enforcement activity that lead to their conclusion that “the implementation of electronic health records (EHR) and rapid expansion of telemedicine has caught the attention of the Department of Justice (DOJ) and the qui tam relators’ bar, prompting rigorous enforcement actions and increasing False Claims Act (FCA) cases.”

DOJ has traditionally been wary of telemedicine. Even before the COVID-19 pandemic and the accompanying rapid expansion of telehealth, enforcement in the telemedicine industry was on the rise. In 2019, DOJ pursued enforcement actions in the telehealth space that involved claims for durable medical equipment (DME) and for compound medicines.

Through “Operation Brace Yourself,” DOJ targeted an alleged fraud and kickback scheme through which DME companies paid illegal kickbacks and bribes to medical professionals working for fraudulent telemedicine companies. In exchange, the medical professionals referred Medicare beneficiaries to the conspiring DME companies for back, shoulder, wrist, and knee braces that were medically unnecessary.

The DOJ investigation resulted in enforcement actions against 24 defendants associated with five telemedicine companies, as well as the owners of dozens of durable medical equipment companies and three licensed medical professionals. According to DOJ, the fraud schemes involved more than $1.2 billion in loss.

Traditionally, Medicare’s coverage of telemedicine has been extremely limited. As a result of the pandemic, telehealth service providers were granted broad flexibility to provide telemedicine services and this flexibility remains today. The easing of restrictions stemming from the COVID-19 pandemic has prompted a dramatic increase in the use of telehealth.

It seems unlikely that the federal government will reinstate pre-pandemic restrictions on telehealth services given the increased popularity and reliance on telehealth services. Indeed, Congress has introduced several bipartisan bills to address post-pandemic telehealth services, signaling that utilization of telehealth services will likely remain prevalent.

In October of 2020, DOJ announced a telehealth enforcement action for a fraudulent DME billings scheme dubbedOperation Rubber Stamp.” The scheme involved allegedly paying medical professionals to order DME, genetic and other diagnostic testing, and pain medications without sufficient patient diagnostic interaction, resulting in $1.5 billion in fraudulent billings to government health care insurance programs.

False Claims Act (FCA) violations have been alleged and resolved in an ongoing investigation dubbed Operation “Happy Clickers,” which involves allegations that physicians “approved orders for medically unnecessary braces and cancer genetic testing despite many red flags that these items and services were illegitimate.”

In recent years, DOJ has pursued several FCA cases related to Electronic Health Records (EHR) that have led to large settlements and highlight various FCA risks.

For example, in 2020, Practice Fusion Inc, a health information technology developer, paid $145 million to resolve criminal and civil investigations relating to its EHR software, including a $118.6 million FCA settlement. The resolution addressed allegations that Practice Fusion “extracted unlawful kickbacks from pharmaceutical companies in exchange for implementing clinical decision support (CDS) alerts in its EHR software designed to increase prescriptions for their drug products.”

FCA and other fraud investigations relating to telehealth fraud and EHR are expected to continue. Brian M. Boynton, Acting Assistant Attorney General for the Civil Division at the Department of Justice, recently stated that he expects “a continued focus on telehealth schemes, particularly given the expansion of telehealth during the pandemic.” He also identified fraud relating to EHR as another area that is likely to be a focal point of future enforcement efforts.

The Department of Health and Human Services Office of Inspector General (OIG) has also made clear that it is “conducting significant oversight work assessing telehealth services during the public health emergency.”

Telemedicine and EHR technologies have rapidly changed patient care, introducing opportunities for potential fraud and abuse and exposing gaps in oversight. Claims administrators should expect increased fraudulent activities in these areas going forward and take steps to minimize their risk.

9th Circuit Sends Lyft Drivers A.B. 5 Class Action to Arbitration

Lyft drivers filed a a class action lawsuit in 2020, seeking an emergency ruling that requires the company to reclassify its drivers from “independent contractor” to “employee” status.

They are represented by a lawyer who has been filing similar suits against Lyft and other “gig economy” companies for years.

In the trial court, a motion to compel arbitration, the court stated in ruling on a motion to compel arbitration “While the status of Lyft drivers was previously uncertain, it is now clear that drivers for companies like Lyft must be classified as employees.” … “What makes this an emergency, in their view, is that if Lyft is finally forced to reclassify its drivers, those drivers will potentially qualify for sick pay under California law.”

And in ruling on the “emergency” the court stated “even if drivers were reclassified, the amount of sick pay involved would be small” and that “the plaintiffs insist that if they don’t get their zero to three days of paid sick leave immediately, they are willing to put their passengers at risk. One of the plaintiffs, for example, insists that (unless he is reclassified) he will continue to give rides even if he develops coronavirus symptoms and would expose his passengers to the disease.” The Court obviously did not take this risk seriously.

Thus the court moved on stating “In short, there are no heroes in the story of this case. But there are several complicated legal questions, to which this ruling now turns. The first question is whether the plaintiffs’ individual claims must be compelled to arbitration. ” And the court concluded that issue by ruling “Lyft’s motion to compel arbitration is granted as to the plaintiffs’ claims for individualized relief.”

The Lyft drivers appealed the Order to the 9th Circuit Court of Appeals. At issue in this appeal is whether Lyft drivers are engaged in interstate commerce and therefore exempt from the Federal Arbitration Act (“FAA”). The Court of Appeals ruled that the drivers were properly ordered to arbitration in the unpublished case of Rogers v Lyft (Feb, 2022) No. 20-15689 D.C. No. 3:20-cv-01938-VC.

At issue in this appeal is whether Lyft drivers are engaged in interstate commerce and therefore exempt from the Federal Arbitration Act (“FAA”). Section1 of the FAA exempts from the Act’s coverage all ‘contracts of employment of seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce.

The 9th Circuit recently decided this question in Capriole v. Uber Techs., Inc., 7 F.4th 854 (9th Cir. 2021), holding that rideshare drivers “do not fall within the ‘interstate commerce’ exemption from the FAA.” Id. at 861.

In Capriole, the 9th Circuit concluded that Uber drivers, as a nationwide “class of workers,” are not “engaged in foreign or interstate commerce” and are therefore not exempt from arbitration under the FAA. It based much of the reasoning on United States v. Yellow Cab Co., 332 U.S. 218, 228-29, (1947), an antitrust case in which the Supreme Court held that the transportation of interstate rail passengers and their luggage between rail stations in Chicago to facilitate their travel is part of “the stream of interstate commerce.”

Because Capriole controls the outcome in this case, we affirm the judgment of this district court.

COVID “Misinformation” Wars Reach California Legislature

Two California Democratic lawmakers took separate aim Tuesday at pandemic disinformation they argue receives a broad audience and misplaced credibility through social media platforms – rejecting concerns that their legislation might carry free speech or business privacy considerations.

Assemblyman Evan Low said his bill would label doctors’ promoting of misinformation or disinformation about COVID-19 to the public as unprofessional conduct that could draw disciplinary action from the California Medical Board. Disinformation is generally considered to be intentional or deliberate falsehoods, while misinformation can be inadvertent.

The California Medical Association hasn’t taken a position on Low’s bill. But the association’s president, Dr. Robert E. Wailes, said in a statement that misinformation has prolonged the pandemic, “making the work of our frontline health care workers more difficult and dangerous while harming community health.”

The legislation differs from efforts in some other states like Florida and Tennessee, where Republican lawmakers have resisted doctor discipline proposals.

Tennessee’s Board of Medical Examiners unanimously adopted in September a statement that said doctors spreading Covid misinformation – such as suggesting that vaccines contain microchips – could jeopardize their license to practice.

But before any physicians could be reprimanded for spreading falsehoods about covid-19 vaccines or treatments, Republican lawmakers threatened to disband the medical board.

The growing tension in Tennessee between conservative lawmakers and the state’s medical board may be the most prominent example in the country. But the Federation of State Medical Boards, which created language adopted by at least 15 state boards, is tracking legislation introduced by Republicans in at least 14 states that would restrict a medical board’s authority to discipline doctors for their advice on Covid.

In Florida, a Republican-sponsored bill making its way through the state legislature proposes to ban medical boards from revoking or threatening to revoke doctors’ licenses for what they say unless “direct physical harm” of a patient occurred. If the publicized complaint can’t be proved, the board could owe a doctor up to $1.5 million in damages.

Some medical boards have opted against taking a public stand against misinformation. The Alabama Board of Medical Examiners discussed signing on to the federation’s statement, according to the minutes from an October meeting. But after debating the potential legal ramifications in a private executive session, the board opted not to act.

A few physician groups are resisting attempts to root out misinformation, including the Association of American Physicians and Surgeons, known for its stands against government regulation.

And Sen. Richard Pan’s proposal, which still is being finalized, would require online platforms like Facebook to publicly disclose how their algorithms work and how they promote user content, including which data sets are used and how they rank the prominence of user posts.  The platforms would also be required to confidentially share more detailed information with researchers, with the goal of creating more responsible algorithms.

Congress is considering a Platform Transparency and Accountability Act with a similar goal at the federal level, Pan said, but he wants California to take the lead.

West Covina Bolts From LA County Dept. of Public Health

For some counties and cities that share a public health agency with other local governments, differences over mask mandates, business restrictions, and other covid preventive measures have strained those partnerships. At least two have been pushed past the breaking point.  California Healthline reports that a small city in Southern California and a county in Colorado are splitting from their longtime public health agencies to set up their own local departments.

Both West Covina, California and Douglas County Colorado,  plan to contract some of their health services to private entities. The West Covina City Council has voted to terminate its relationship with the Los Angeles County Department of Public Health over disagreements about covid shutdowns.

West Covina officials have criticized the county health department’s covid restrictions as a one-size-fits-all approach that may work for the second-largest city in the U.S., but not their suburb of about 109,500 people. West Covina plans to join Long Beach, Pasadena, and Berkeley as one of a small number of California cities with its own health agency. A date for the separation has not been set.

West Covina plans to contract some services to a private consultant, Transtech Engineers, that works mainly on city engineering projects and federal contracts, according to its website.

West Covina Councilman Tony Wu and area family physician Dr. Basil Vassantachart are leading efforts to form the city’s own department. They hope L.A. County’s oversight of about 10 million people – “bigger than some states,” as Vassantachart noted – can be broken up into regional departments.

Amitabh Chandra, who directs health policy research at the Harvard Kennedy School of Government, said the private sector won’t necessarily have better answers to a public health problem. “It might be the case that they’re good at delivering on some parts of what needs to be done, but other parts still have to be done in-house,” Chandra said.

Jeffrey Levi, a professor of health policy and management at the George Washington University, suggests there are too many local health departments in the U.S. and there should be more regionalization, rather than splitting into smaller departments.

“It’s very hard to effectively spend money and build the foundational capabilities that are associated with a meaningful public health department,” Levi said. “Doing this just because of anger at something like a mask ordinance is really unfortunate.”

L.A. County Public Health Department is one of the most sophisticated, and one of the most robust health departments in the country,” Levi said. “You are losing access to just a wide, wide range of both expertise and services that will never be replicable at the local level. Never.”

In Douglas County, Colorado many residents had opposed mask mandate guidance from the Tri-County Health Department, a partnership among Adams, Arapahoe, and Douglas counties. Tri-County issued a mask order for the counties’ school districts in September 2021 and, within days, conservative Douglas County announced its commissioners had voted unanimously to form its own health department.

Douglas County, which in 1966 joined what was then called the Tri-County District Health Department, is phasing out of the partnership, with plans to exit entirely by the end of this year. It has already taken over many of its own covid relief efforts from Tri-County. It is contracting things like covid case investigation, contact tracing, and isolation and quarantine guidance to a private consultant, Jogan Health Solutions, founded in early 2021. The contract is reportedly worth $1.5 million.

The most recent major private-sector takeover of public health was a flop. A private nonprofit, the Institute for Population Health, took over Detroit’s public health functions in 2012 as the city was approaching bankruptcy.

The experiment failed, leaving a private entity unable to properly oversee public funding and public health concerns placed on the back burner amid the city’s economic woes. Residents also didn’t have a say in where the money went, and the staff on the city’s side was stripped down and couldn’t properly monitor the nonprofit’s use of the funds. By 2015, most services transferred back to the city as Detroit emerged from bankruptcy in 2014.