Hand & Wrist Center of Houston, P.A. v. SGS Control Services, Inc.

409 S.W.3d 743, 2013 WL 3716690, 2013 Tex. App. LEXIS 8749
CourtCourt of Appeals of Texas
DecidedJuly 16, 2013
Docket01-12-00411-CV
StatusPublished
Cited by6 cases

This text of 409 S.W.3d 743 (Hand & Wrist Center of Houston, P.A. v. SGS Control Services, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hand & Wrist Center of Houston, P.A. v. SGS Control Services, Inc., 409 S.W.3d 743, 2013 WL 3716690, 2013 Tex. App. LEXIS 8749 (Tex. Ct. App. 2013).

Opinion

OPINION

EVELYN V. KEYES, Justice.

After Charles Reagan was injured during the course and scope of his employment, his employer, SGS North America, Inc. (“SGS”), took him to Hand & Wrist Center, P.A. (“Hand & Wrist”) for treatment, and one of SGS’s employees signed a “Letter of Guarantee,” obligating SGS to pay Hand & Wrist the fees charged for Reagan’s medical expenses if its workers’ compensation insurance coverage did not cover the claim. SGS did not pay Hand & Wrist, and Hand & Wrist sued to recover the costs of its “usual and customary fees” for the medical services rendered to Reagan. SGS filed a plea to the jurisdiction, arguing that the trial court lacked subject matter jurisdiction because Hand & Wrist failed to exhaust its administrative remedies prior to filing suit. The trial court granted the plea and dismissed the case. In three issues, Hand & Wrist contends that (1) the trial court erroneously granted the plea to the jurisdiction because the evidence demonstrated that SGS elected not to invoke its workers’ compensation *746 coverage for this claim; (2) the exclusive remedies provision of the Workers’ Compensation Act does not apply to health care providers such as Hand & Wrist; and (3) the Texas Legislature did not intend for the exclusive remedies provision to apply to both employees seeking compensation benefits and health care providers.

We affirm.

Background

On May 7, 2010, Charles Reagan injured his hand while at work and was referred to Hand & Wrist for treatment. Randy Davis, SGS’s regional Health, Safety, and Environmental Coordinator, accompanied Reagan to Hand & Wrist. Davis, in his capacity as “HSE Coordinator,” signed a Letter of Guarantee presented by Hand & Wrist administrative staff. This letter provided:

SGS Control (hereafter called “the Company”) desires that Charles Reagan (hereafter called “the Patient”) receive medical care for injuries sustained on or about 05/07/2010. In that regard, the Company hereby agrees to the following. The Company guarantees that it will pay Hand & Wrist Center of Houston, P.A., SCA Houston Hospital for Specialized Surgery, L.P., and Gulf Anesthesia Associates, P.A. (hereafter called “the medical care providers”) their usual and customary fees for medical care rendered to the Patient. Payment will be made within 30 days after receiving notice. This Letter of Guarantee may be canceled only with 30 days written notice by either party.
The Medical Providers will not seek additional payment from the Company under this Letter of Guarantee if 1) payment is made by an insurance carrier in accordance with the Texas Department of Insurance-Division of Worker’s Compensation statutory fee schedule, or 2) payment is made under terms of a Certified Health Care Network’s contracted fee schedule, 3) payment is made by a Third Party Administrator’s Provider Agreement, if any are in effect, or 4) the Company has workers’ compensation insurance with Texas Mutual Insurance Company.
Payment will be made even if the injury is determined to have occurred while the Patient was not at work, or if the injury is not reported to the insurance carrier (if any), or if a claim is not filed with the insurance carrier, by the Employer, in a timely fashion. Payment will be made even if the patient tests positive for drugs or alcohol at the time of the injury.
Any dispute regarding this Letter of Guarantee will be resolved in a Court of Harris County, Texas. Because the Company agrees to pay these fees if and when there is no insurance coverage, then lack of insurance is not a defense to payment of the fees. This Letter of Guarantee is effective upon the date appearing below. This agreement may only be modified or terminated in writing. This agreement is an enforceable contract.

Hand & Wrist billed a total of $5,850.75 for Reagan’s medical care. It is undisputed that SGS never paid Hand & Wrist for the care provided to Reagan. 1

After several unsuccessful attempts to obtain payment from SGS, Hand & Wrist sued SGS for breach of contract. Hand & Wrist alleged that, in the Letter of Guarantee, SGS “agreed to pay for the medical *747 services to be provided to Charles Reagan for injuries he sustained on .or about the same day that the contract was signed,” but SGS failed to pay after repeated requests for payment.

SGS answered and filed a plea to the jurisdiction. In its plea, SGS asserted that Reagan was injured during the course and scope of his employment and that SGS had workers’ compensation insurance coverage. Thus, the Texas Department of Insurance-Workers’ Compensation Division (“the Division”) had exclusive jurisdiction over any disputes about payment arising out of the medical care provided for Reagan’s injury “until the administrative remedy has been exhausted.” SGS alleged that Hand & Wrist had not submitted a valid claim for payment to its workers’ compensation insurance carrier nor had it “participated in the medical dispute resolution process provided for under the [Texas Workers’ Compensation Act].” As a result, it argued that Hand & Wrist had not exhausted its administrative remedies and that the trial court therefore lacked subject matter jurisdiction over the dispute.

Hand & Wrist filed the following response:

Defendant claims that its plea to the jurisdiction should be granted because defendant is a subscriber to workers’ compensation insurance. This argument fails because plaintiffs claim is based on a contract that defendant signed agreeing to pay the fee for the medical services under several conditions stated in the contract. In this case, plaintiff has not been paid by workers’ compensation insurance or any other source, and therefore, under the terms of the contract, defendant is obligated to pay regardless of whether it was or was not a subscriber to workers’ compensation insurance.

The trial court held a hearing on SGS’s plea to the jurisdiction. At the hearing, Sean Lundy, Hand & Wrist’s medical practice executive, testified concerning the services Hand & Wrist provided to Reagan and its attempts to recover payment for its services. He testified that the letter of guarantee used by Hand & Wrist in cases involving injured employees allows an employer to determine whether it wants its insurance carrier to cover a claim or whether it wants to “take care of it [itself],” but the letter “does not allow [an employer] to not pay.” Lundy understood the Letter of Guarantee to be an agreement that “SGS is going to pay if [it does not] elect to invoke [its] workers’ comp or if there is not workers’ comp coverage.” Lundy testified that SGS did not inform Hand & Wrist of its insurance carrier, and therefore Hand & Wrist did not know whom to bill, aside from SGS, for Reagan’s medical care.

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Bluebook (online)
409 S.W.3d 743, 2013 WL 3716690, 2013 Tex. App. LEXIS 8749, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hand-wrist-center-of-houston-pa-v-sgs-control-services-inc-texapp-2013.