Burge v. Town of Stonington

594 A.2d 945, 219 Conn. 581, 1991 Conn. LEXIS 337
CourtSupreme Court of Connecticut
DecidedJuly 16, 1991
Docket14052
StatusPublished
Cited by9 cases

This text of 594 A.2d 945 (Burge v. Town of Stonington) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burge v. Town of Stonington, 594 A.2d 945, 219 Conn. 581, 1991 Conn. LEXIS 337 (Colo. 1991).

Opinion

Shea, J.

We are asked to decide whether the “act establishing a prospective payment system for hospitals,” Public Acts 1984, No. 84-315 (the DRG Act), affected an employer’s workers’ compensation liability for hospital bills incurred by an injured employee between 1984 and 1989, after which period the act was repealed. We conclude that an employer was required to pay the diagnosis related group or “DRG” charges for hospital services billed during that five-year period.

The parties stipulated to the pertinent facts. The named plaintiff, Craig Burge (the employee), was employed by the named defendant, the town of Stoning-ton (the employer). On August 21, 1987, he suffered an injury compensable under the Workers’ Compensation Act, General Statutes § 31-275 et seq., and was hospitalized between September 2 and September 7, 1988. During his hospitalization, Lawrence and Memorial Hospital (the hospital) provided him with rea[583]*583sonable and necessary hospital care. The hospital’s bill, dated September 12, 1988, itemized charges totaling $3799.74. At that time, however, the DRG Act required the hospital to bill a fixed charge per case based upon the diagnosis of the patient and the patient’s payer category, without regard to the particular services rendered. General Statutes § 19a-165f (a).1 Accordingly, the hospital billed the employee $7207.55.2 The employer, conceding liability under the Workers’ Compensation Act, paid the itemized charges, but refused to pay the balance of $3407.81. In the ensuing proceedings before the workers’ compensation commissioner for the second district and the compensation review [584]*584division (CRD), the employer argued that the plain language of General Statutes (Rev. to 1987) § 31-2943 limited its liability for hospital fees to the actual cost of the services provided to the employee, i.e., the itemized charges, and that this language was neither explicitly nor implicitly repealed by passage of the DRG Act in 1984. The commissioner, and the CRD, disagreed.

The CRD rejected the employer’s contentions on the same basis expounded fully in an earlier CRD decision, Tannery. Walgren Tree Experts, No. 748 CRD-8-88-7 (January 17,1990). In Tanner, the CRD concluded that after the legislature in 1973 created the commission on hospitals and health care (hospital commission) with rate-setting and budget review powers, the “actual cost” language in § 31-294 “ceased to be relevant.” It found that since that date, the workers’ compensation commissioners, when determining employer liability for hospital confinement and treatment, had relied on the uniform rates set by the hospital commission, and it concluded that the DRG rates set by the commission after passage of the DRG Act were similarly applicable. Finally, the CRD held that the legislature had resolved any remaining ambiguity when it enacted No. 88-357 of the 1988 Public Acts, which explicitly amended both § 19a-165f and § 31-294 by requiring [585]*585employers to pay hospital DRG charges. The CRD held that these amendments were intended to clarify existing law and thus concluded that since October 1,1984, the effective date of the DRG Act, employers would be required to pay for hospital services at the DRG rates.

I

The Workers’ Compensation Act, including § 31-294, has been a part of our law since 1913. In the ensuing seventy-eight years, the workers’ compensation commissioners have made numerous awards, including orders to employers to pay hospital charges. It is appropriate for us to consider this long history of practical application in our analysis of the statute’s meaning and scope.

In September, 1988, when the employee was injured, General Statutes § 31-294 provided in pertinent part: “The pecuniary liability of the employer for the medical and surgical service herein required shall be limited to such charges as prevail in the same community or similar communities for similar treatment of injured persons of a like standard of living when such treatment is paid for by the injured person; but the liability of the employer for hospital service shall be the amount it actually costs the hospital to render the service, such amount to be determined by the commissioner . . . (Emphasis added.)

The italicized language was added to the statute in 1921; Public Acts 1921, c. 306, § 3; apparently in response to the deep division between compensation commissioners regarding the appropriate level of hospital fees for which employers would be liable. Early workers’ compensation commission decisions indicate that most members of the industrial working class at the beginning of this century lacked the funds to pay their hospital costs. As a result, hospitals commonly [586]*586admitted them to the “general wards” or “public wards” of the hospital, which provided hospital'care to the general public at below cost. See, e.g., Schillinger v. Yale Brewing Co., 3 Conn. Comp. Dec. I-181 (1919); Malone v. H. R. Douglas, Inc., 1 Conn. Comp. Dec. 297 (1915). For example, a patient in the “general wards” in the period 1916 through 1919 might pay $7 per week to receive bed, board, nursing care and the services, performed on a pro bono basis, of the same doctors and surgeons who cared for the private patients. See Schillinger v. Yale Brewing Co., supra; Beinotovitz v. National Iron Works, 1 Conn. Comp. Dec. 623 (1916); Johnson v. Spring Glen Farm, Inc., 1 Conn. Comp. Dec. 593 (1916). By contrast, a private room patient could pay $25 per week for bed and board and in addition be required to pay separately for doctors’ and nurses’ fees. See, e.g., Beinotovitz v. National Iron Works, supra; cf. Christophson v. Turner Construction Co., 1 Conn. Comp. Dec. 591 (1916) ($18 and above). It was widely acknowledged that the “general ward” was in essence a “charity” ward that operated at a loss. See Spencer v. New Haven Rendering Co., 4 Conn. Comp. Dec. I-229 (1921); Schillinger v. Yale Brewing Co., supra; Kelly v. Whitaker, 2 Conn. Comp. Dec. 1-363 (1917); Anderson v. Maxim Munitions Corporation, 2 Conn. Comp. Dec. I-88, I-89 (1916). Some hospitals developed a third alternative, commonly called the “private ward,” or semiprivate rooms with eight to ten patients. These “private wards” provided a higher nurse to patient ratio, better food, and better conditions. Charges for admission to “private wards” were viewed as “compensatory,” that is, the fee charged was expected to cover the actual costs of the stay. See Spencer v. New Haven Rendering Co., supra, I-232; Anderson v. Maxim Munitions Corporation, supra, I-89. In such wards the patient also had to pay extra for doctors’ Mis, but not usually for nursing care. Some [587]*587hospitals developed “private wards” only as a response to enactment of the Workers’ Compensation Act; in those hospitals the “private wards” were actually referred to as “compensation wards.” See, e.g., Spencer v. New Haven, Rendering Co., supra; Schillinger v. Yale Brewing Co., supra, I-183.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Caraballo v. Electric Boat Corp.
Supreme Court of Connecticut, 2015
Dina v. Cuda & Associates
950 F. Supp. 2d 396 (D. Connecticut, 2013)
Town of Middlebury v. Department of Environmental Protection
927 A.2d 793 (Supreme Court of Connecticut, 2007)
Doe v. Bridgeport Police Department
434 F. Supp. 2d 107 (D. Connecticut, 2006)
Urbanowicz v. Planning & Zoning Commission
865 A.2d 474 (Connecticut Appellate Court, 2005)
Fenton v. United Technologies Corp.
204 F. Supp. 2d 367 (D. Connecticut, 2002)
Davis v. Monterey Village Associates, No. Cv87 0090389 (Jun. 25, 1993)
1993 Conn. Super. Ct. 6195 (Connecticut Superior Court, 1993)
Ansonia Library Board of Directors v. Freedom of Information Commission
600 A.2d 1058 (Connecticut Superior Court, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
594 A.2d 945, 219 Conn. 581, 1991 Conn. LEXIS 337, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burge-v-town-of-stonington-conn-1991.