Delaware Veterans Home v. Dixon

CourtSuperior Court of Delaware
DecidedNovember 4, 2016
DocketK15A-12-001 WLW
StatusPublished

This text of Delaware Veterans Home v. Dixon (Delaware Veterans Home v. Dixon) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Delaware Veterans Home v. Dixon, (Del. Ct. App. 2016).

Opinion

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE DELAWARE VETERANS HOME, . C.A. No. K15A-12-001 WLW Employer-Appellant, : Kent County v. MONICA DIXON, Employee-Appellee. Submitted: August 18, 2016 Decided: November 4, 2016 OPINION On Appeal from the Decision of The Industrial Accident Board of the State of Delaware Reversed and Remana'ed Andrew M. Lukashunas, Esquire of Tybout Redfearn & Pell, Wilmington, Delaware;

attorney for Employer-Appellant.

Walt F. Schrnittinger, Esquire of Schmittinger & Rodriguez, P.A., Dover, Delaware; attorney for Employee-Appellee.

WITHAM, R.J.

Delaware Veterans Home v. Monica Dz`xon C.A. No. KlSA-lZ-OOl WLW November 4, 2016

Employer/Appellant Delaware Veterans Home appeals from a decision and award of the Industrial Accident Board (the “Board”). In that decision, the Industrial Accident Board directed the insurance carrier and physicianl to “communicate and determine the proper [billing] codes for the remaining unpaid procedures” and awarded attorney’s fees and a medical witness fee to Claimant/Appellee Monica Dixon.

Because the Board incorrectly applied the law, rendered a Vague adjudication, and failed to base its findings on substantial evidence, the decision of the Board is REVERSED and REMANDED for further proceedings.

ACTUAL AND PROCEDURAL BACKGROUND

Monica Dixon was injured in a work accident on August 23, 2010, while working for Delaware Veterans Home. As the Board noted in its decision: “[She] sustained injuries to her low back and has undergone several surgeries, including: L4- 5 diskectomy, decompression with a disk replacement; and L3-4 fusion . . . . ”2 The dispute that gave rise to this appeal involves a surgery that was performed on January 29, 2014.

The Employer acknowledges that the surgery was compensable but disputes the amount owed to both the provider, Dr. Ali Kalamchi, and his physician assistant, Russell Queen. Dr. Kalamchi performed a surgery that has alternately been described

by the Employer as an “L3 -4 revision surgery that contemplated re-instrumenting that

1 Neither of whom were parties. 2 Dixon v. Del. Veterans Home, IAB Hearing No. 1358419, at l (Nov. l6, 2015).

Delaware Veterans Home v. Monica Dixon C.A. No. K15A-12-001 WLW November 4, 2016

level”3 or by the Board as an “exploration, revision and re-instrumentation of the fusion.”4 lt is the exact description of the surgery performed, as well as whether there was a proper coding for the surgery, that lies at the heart of the dispute below.

I. The Billing Dispute

On January 29, 2014, Dr. Kalamchi submitted an Operative Report and Health Insurance Claim Form to the Employer through its third-party administrator, PMA (originally “Pennsylvania Manufacturers’ Association”). Dr. Kalamchi indicated that he had performed a procedure which included a laminectomy (code 22612) and arthrodesis, or fusion (63047). He further charged to explore the fusion (22830),to remove existing instrumentation (22852), and for spinal fixation (22841).

On February 24 and February 26, PMA supplied Dr. Kalamchi with Explanation of Benefits (EOB) forms. The EOBs indicated that PMA had evaluated the charges under the Delaware Health Care Payment System and would be making payment only for codes 22612 (laminectomy) and 63047 (arthrodesis). PMA left codes 22830, 22852, and 22841 unpaid as “bundled” charges.

Dr. Kalamchi appealed the denials and resubmitted on March 13 and March 16, 2014, providing pages from a CPT coding textbook to show that at least code 22841 should be paid. PMA continued to deny payment.

The Claimant ultimately filed a Petition to Determine Additional Compensation

Due before the Board to resolve the billing dispute.

3 Employer-Below, Appellant’s Opening Br. on Appeal 3. 4 Dixon, IAB Hearing No. 1358419, at 2.

Delaware Veterans Home v. Monica Dixon C.A. No. K15A-12-001 WLW November 4, 2016

II. T he Board Proceedings and Award

In preparation for the hearing, Dr. Kalamchi was deposed and provided his description of the surgery, as discussed above. He explained that he personally selected the codes to be charged and opined that the codes he selected were not bundled.

At the hearing before the Board, the Employer offered the testimony of Krista Lenig, an employee of PMA. Ms. Lenig explained that she reviews bills for compliance with the Delaware Health Care Payment System, applying the National Correct Coding Initiative (NCCI) Policy Manual and the American Medical Association (AMA)’s Current Procedural Terminology (CPT).

With respect to the denied charges, Ms. Lenig explained that code 22841 is never separately billable, and was contemplated within codes 63047 and 22612. She also testified that code 22830 is bundled within code 22852, which in turn is bundled into the master code 63047.

The Board’s decision described the procedure in detail. lt placed significant weight on the doctor’s testimony and Ms. Lenig’s apparent admission that “the issue is that the wrong codes were given - not that the doctor is not owed the amounts

charged.”5

5 Dixon, IAB Hearing No. 1358419, at 7. The hearing officer did not provide a citation to where Ms. Lenig admitted that the doctor is not owed the amount charged. The closest record evidence for that admission is as follows, during cross examination by the Claimant’s attorney and a colloquy between the hearing officer and Ms. Lenig:

Q [Claimant’s Attorney]: So what we have here is a problem of numbers, not the problem that he isn’t owed anymore money for the work that he did as

Delaware Veterans Home v. Monica Dixon C.A. No. K15A-12-001 WLW November 4, 2016

On the basis of that admission, the Board found that the dispute here was over "billing/coding/bundling issues” and that the Employer was unable to present evidence “of the proper codes or any medical evidence that the procedures were unbundled.” The Board emphasized that Ms. Lenig had admitted that “the surgical procedure that Dr. Kalamchi performed was more complex than the one for which he was paid.”6 As a result, the Board found, the core of the dispute was a “failure in communication and cooperation between the billing personnel in Dr. Kalamchi’s office and in the carrier, PMA’s, office.”7

Rather than awarding specific additional compensation, the Board’s decision purported to “direct[ ] those skilled on these matters . . . to communicate and determine the proper codes . . . so that the bills can be paid.”8 Because it believed it

was awarding the Claimant compensation, the Board found the Claimant was entitled

documented in the operative note. A: The problem is he billed for a service that is not documented or for other services that are bundled.

Q [Hearing Officer]: And during Mr. Schmittinger’s cross examination of you, you admitted that, or it’s not contested that Dr. Kalamchi is owed for this procedure, these amounts. The dispute is that the wrong codes were given. A: Correct. l reviewed for the codes. Q [Hearing Officer]: Okay. Kalamchi Dep. 50:15-19, 60:20-25. lt is unclear how Ms. Lenig’s answer, given by an employee of a non-party insurance carrier, would operate as a sort of judicial admission and bind the Employer in these proceedings. Nonetheless, the Board’s decision seemed to assume that Ms. Lenig’s answer bound the Employer.

6 Dixon, IAB Hearing No. 1358419, at 9. 7 Id. 8 ld. at 9-10.

Delaware Veterans Home v. Monica Dixon C.A. No. K15A-12-001 WLW November 4, 2016

to attorney’s fees and a medical witness fee.

This appeal followed.

EMPLOYER’S CONTENTIONS

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Delaware Veterans Home v. Dixon, Counsel Stack Legal Research, https://law.counselstack.com/opinion/delaware-veterans-home-v-dixon-delsuperct-2016.