City of Duncan v. Tulsa Spine Hospital

2008 OK CIV APP 70, 190 P.3d 1197, 2008 Okla. Civ. App. LEXIS 47
CourtCourt of Civil Appeals of Oklahoma
DecidedJune 20, 2008
Docket105,183. Released for Publication by Order of the Court of Civil Appeals of Oklahoma, Division No. 1
StatusPublished
Cited by1 cases

This text of 2008 OK CIV APP 70 (City of Duncan v. Tulsa Spine Hospital) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Duncan v. Tulsa Spine Hospital, 2008 OK CIV APP 70, 190 P.3d 1197, 2008 Okla. Civ. App. LEXIS 47 (Okla. Ct. App. 2008).

Opinion

CAROL M. HANSEN, Judge.

{1 Petitioners, City of Duncan and City of Duncan Fire Department (collectively Employer), seek our review of a Workers' Compensation Court (WCC) order which found Petitioners' delay in payment of the medical bill submitted by Respondent, Tulsa Spine Hospital (Hospital), to be unreasonable and justified waiving the limits of the WCC's Schedule of Medical and Hospital Fees (the Schedule). Finding no error of law and competent evidence to support the WCC order, we sustain.

12 Although Respondent, Mutual Assurance Administrators, Inc. (Administrator), who is Employer's third party administrator for WCC claims, was not a party in the trial proceedings before the WCC, 1 the Supreme Court granted its Application to Participate in Appeal, allowing Administrator "to participate in this proceeding as a party respondent." Administrator, who argued it had an interest in seeing the WCC's findings "which essentially absolved it of being dilatory in processing the claim are upheld on appeal," filed an appellate Answer Brief. The claim and disability award of Claimant, Herman Kespereit, are not in dispute and he is not a party to this appeal.

T3 Claimant filed his Form 3, Employee's First Notice of Accidental Injury and Claim for Compensation, on February 14, 2005. He alleged work related injury to his low back in a single incident accident on January 4, 2004. On March 2, 2005, Employer filed its Form 10 Answer and Pretrial Stipulation, in which it conceded Claimant had sustained a com-pensable injury, but denied disability. On March 30, 2005, Claimant requested a pre-hearing conference on the question of surgery recommended by Dr. C., his treating physician, for his lower back condition.

T4 Pursuant to a request by Employer, the WCC issued its Order for Medical Examination, dated June 7, 2005, appointing Dr. F. as an independent medical examiner (IME). Among the issues included in this order to be addressed by the IME was Dr. C.'s surgery recommendation. Dr. F. subsequently performed the lower back surgery at Hospital on August 8, 2005. On August 11, 2005, Administrator wrote to Hospital declining to pay its invoice in the amount of $1,009.80 for pre-surgery radiology and laboratory work dated August 3, 2005. The reason stated for refusing payment was "surgery was not authorized and therefore, billings associated with this surgery will not be paid."

15 Jan Kester, Administrator's account manager and adjuster for Employer's accounts, was called by Hospital at trial and testified Administrator also received Hospitals $79,824.51 statement for the surgery itself in August 2005. She acknowledged the statements from Hospital contained a notation that failure to offer payment of charges within sixty days of receipt "may limit the applicability of the Schedule of Medical and Hospital fees." - Administrator eventually paid Hospital $20,098.86 pursuant to the Schedule's established fees in December 2006.

16 The record reflects Employer stipulated Hospital's charges were not paid within the sixty days standard set forth in Rule 50(C), Rules of the Workers' Compensation Court, 85 O.S. Supp.2005, App., which provides:

*1199 Payment of Charges: All charges which comply with the Schedule of Medical and Hospital Fees should be paid by the uninsured or own risk employer or insurance carrier within thirty (80) days of the employer's or carrier's receipt of the bills from the provider. Failure to offer payment of charges within sixty (60) days of receipt of the bills may limit the applicability of the Schedule of Medical and Hospital Fees.

11 7 On November 1, 2005, Hospital filed its Form 19, Request for Payment of Charges for Health or Rehabilitation Services, along with the Form 9 Motion to Set for Trial required by Rule 50(BE)@2). The Form 19 noted total charges of $80,334.31 and no payments. In its Response to Hospital's Form 19 request, Employer acknowledged payment had been refused on the grounds of "necessity of treatment" and "unauthorized physi-clan." As a further affirmative defense, Employer noted-"Order issued by the Court on June 7, 2005 did not include treatment."

18 Hospital's Form 19 request was heard on April 17, 2007. Hospital asked the WCC to award it the full $80,334.31 pursuant to Rule 50 and not apply the limits of the Schedule. Hospital agreed credit for the $20,098.86 paid by Administrator was appropriate. As noted above, Employer stipulated payment of Hospital's charges was not made within Rule 50's sixty day standard and acknowledged the court had the discretion not to apply the Schedule. Employer, however, asserted Hospital provided its services with the expectation it would be paid according to the fees established by the Schedule and that Hospital should therefore be required to show some "injury" to justify not applying the Schedule's set fees.

I 9 The trial court's order of April 23, 2007, found Employer's failure to pay Hospital's bill within sixty days was "unreasonable" and that Hospital's charges of $79,824.51 were "reasonable in amount." The court ordered Employer to pay "the additional sum of $50,000.00," after an unexplained reduction of $9,225.65. More specifically, the trial court further found:

THAT [Employer] used a third party administrator but failed to communicate to that third party administrator [Employer's] knowledge of treatment and surgery authorizations not only Ordered by the Court but stipulated to by [Employer]. The facts show instead that [Employer] withheld that information and knowledge and in fact denied authorization to its third party administrator to pay claimant's bill received in August of 2005. The Court further FINDS that the third party administrator would have timely paid the bill in this case but for the actions of [Employer] withholding information and authorization despite the stipulation in the Order of June 1, 2005 and the Order of June 7, 2005.

10 On May 3, 2007, Employer appealed the trial court's order to a three-judge panel of the WCC. Employer argued [a] Hospital "could not articulate damages justifying assessment of an additional $50,000.00," [b] the trial court should not have found it withheld information from Administrator, and [e] the award of an additional $50,000.00 was an abuse of discretion because Hospital had been paid according to the Schedule. The three-judge panel unanimously affirmed the trial court's order, with one judge specially noting-"It is unfortunate [Employer] will not receive the benefit of the fee scheduled amount but those negotiated figures contemplate payment within the proper time frames." Employer now seeks our review of the WCC order as affirmed.

11 Here, Employer essentially reiterates the contentions raised before the three-judge panel, which present issues of fact and law. In reviewing issues of fact in WCC orders, our responsibility simply is to canvass the facts, not with the object of weighing conflicting proof in order to determine where the clear weight lies, but only for the purpose of ascertaining if the decision is supported by competent evidence. Parks v. Norman Municipal Hospital, 1984 OK 53, 684 P.2d 548. If supported by competent evidence, and not otherwise contrary to law, the WCC's findings on non-jurisdictional issues may not be disturbed on review. Id. However, on questions of law we exercise de novo review. Ibarra v. Hitch Farms, 2002 OK 41, 48 P.3d 802.

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Bluebook (online)
2008 OK CIV APP 70, 190 P.3d 1197, 2008 Okla. Civ. App. LEXIS 47, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-duncan-v-tulsa-spine-hospital-oklacivapp-2008.