Corkill v. Shalala

109 F.3d 1348, 1997 WL 136519
CourtCourt of Appeals for the Ninth Circuit
DecidedMarch 26, 1997
DocketNo. 95-16148
StatusPublished
Cited by3 cases

This text of 109 F.3d 1348 (Corkill v. Shalala) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Corkill v. Shalala, 109 F.3d 1348, 1997 WL 136519 (9th Cir. 1997).

Opinion

ORDER

The Memorandum Disposition filed December 9,1996 is redesignated as a published Opinion.

Before: SKOPIL and FLETCHER, Circuit Judges, and RHOADES,* District Judge.

OPINION

RHOADES, District Judge:

The Secretary of the Department of Health and Human Services sanctioned [1350]*1350Plaintifi/Appellant Anthony G. Corkill, M.D. (“Corkill”), for violations of 42 U.S.C. § 1320c-5 with the penalty of three years exclusion from the Medicare reimbursement program. Corkill appealed to the United States District Court for the Eastern District of California. The District Court, David F. Levi, J., affirmed the Departmental Appeals Board of the United States Department of Health and Human Services. Corkill appeals the final decision of the District Court. We have jurisdiction under 28 U.S.C. § 1291, and we affirm.

Anthony Corkill is a neurosurgeon in private practice in Redding, California. Because Corkill participates in the federal Medicare reimbursement program, his practice is subject to peer review by California Medical Review, Inc. (“CMRI”). CMRI is a peer review organization (“PRO”) under contract with the Department of Health and Human Services to review Medicare services in California.

In order to qualify for reimbursement under the Medicare program, a physician must comply with three statutory requirements. The physician must provide services “only when, and to the extent, medically necessary.” 42 U.S.C. § 1320c-5(a). The services provided must be of a quality which meet professionally recognized standards of care. Id. Services performed must also be supported by evidence of medical necessity and quality in such form and fashion and at such time as may reasonably be required by a PRO in the exercise of its duties and responsibilities. Id.

PROs are responsible for determining whether the services Medicare physicians provide are reasonable, medically necessary, economical, and in accordance with professionally recognized standards of care. See 42 U.S.C. § 1320c-3. A physician’s failure to comply with these three statutory requirements may result in a sanction of exclusion from the Medicare program. If the PRO determines that the physician has “failed in a substantial number of eases substantially to comply” with the statutory requirements, the PRO must submit a report and make recommendations to the Secretary of Health and Human Services. 42 U.S.C. § 1320c-5(b)(l). The Secretary may exclude the physician from the Medicare program if the Secretary agrees with the PRO recommendations and also determines that the physician “has demonstrated an unwillingness or lack of ability substantially to comply” with the statutory requirements. Id.

CMRI took action against Corkill for failure to substantially comply with all three statutory obligations. CMRI claimed that Corkill’s services failed to meet a professionally recognized standard of care in five cases and that his services were not justified by documented evidence of medical necessity in four cases. All nine cases were cases in which Corkill performed Steffee spinal stabilization surgeries. CMRI concluded that Corkffl’s failure to comply with the statute was substantial and recommended a ten year suspension based on the nine cases. On September 22, 1992, CMRI issued its report and recommendations to the Secretary. On January 20, 1993, the Secretary issued a determination that Corkill had violated his statutory obligations and sanctioned Corkill with a three year exclusion from the Medicare program.

Corkill filed an administrative appeal pursuant to 42 U.S.C. § 1320e-5(b)(4). An administrative law judge (“ALJ”) conducted an evidentiary hearing May 17-19, 1993. The Secretary presented testimony of three expert witnesses at the hearing: Frances Conley, M.D., Russ Nockels, M.D., and Kent Michael Patrick, M.D. The witnesses testified from portions of the patients’ medical records and opined, based on these records, that Corkill’s services fell below the professional standard of care.

The ALJ issued a decision on October 14, 1993 affirming the Secretary’s sanction. On February 23, 1994, the Departmental Appeals Board denied Corkill’s request for review of the ALJ’s decision. Corkill appealed to the United States District Court for the Eastern District of California. The District Court had jurisdiction under 42 U.S.C. § 405(g). The District Court affirmed the ALJ’s decision on April 17,1995.

[1351]*1351I. Standard of Review

This court’s review is limited to a determination of whether the Secretary’s final decision is supported by substantial evidence-evidence “such that a reasonable mind may accept it as adequate to support a conclusion.” Travers v. Shalala, 20 F.3d 993, 996 (9th Cir.1994). The Secretary’s decision should only be disturbed if it is not supported by substantial evidence or it is based on legal error. Hermes v. Secretary of Health & Human Servs., 926 F.2d 789, 790 (9th Cir.), cert. denied, 502 U.S. 817, 112 S.Ct. 71, 116 L.Ed.2d 45 (1991). If the evidence as a whole can support a decision in favor of either party, the court must not substitute its own judgment for that of the Secretary. Id.

II. Discussion

On five different occasions, Corkill performed a Steffee stabilization procedure without attempting a bone graft. There is substantial evidence in the record that professional standards of care require a neurosurgeon to attempt a bony fusion whenever performing spinal surgery to install a Steffee fixation system. Corkill admits that he failed to attempt a bony fusion on five occasions, but claims that under some circumstances it is justifiable to perform a stabilization without a bone graft.

There is substantial evidence in the record, consisting of the expert testimony of Dr. Nockels, Dr. Conley, and Dr. Patrick, that the professional standard of care with respect to spinal stabilizations almost always requires the surgeon to attempt to perform a bone graft when performing a Steffee stabilization: Dr. Patrick testified that “once the decision has been made to use a plate it goes hand in glove with doing a fusion.” Failure to fuse the spine puts the patient at risk of possible damage to the nerve roots and inevitably leads to subsequent surgery, unless the patient dies before the fixation wiggles loose. Dr. Patrick testified that if the surgeon does not fuse the spine, the Steffee plate is guaranteed to “fall apart.” Drs. Nockels and Conley gave similar testimony at the administrative hearing.

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109 F.3d 1348, 1997 WL 136519, Counsel Stack Legal Research, https://law.counselstack.com/opinion/corkill-v-shalala-ca9-1997.