in Re Mid-Century Insurance Company of Texas

426 S.W.3d 169, 2012 WL 4717884, 2012 Tex. App. LEXIS 8342
CourtCourt of Appeals of Texas
DecidedOctober 4, 2012
Docket01-12-00446-CV
StatusPublished
Cited by20 cases

This text of 426 S.W.3d 169 (in Re Mid-Century Insurance Company of Texas) 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
in Re Mid-Century Insurance Company of Texas, 426 S.W.3d 169, 2012 WL 4717884, 2012 Tex. App. LEXIS 8342 (Tex. Ct. App. 2012).

Opinion

OPINION

HARVEY BROWN, Justice.

TH Healthcare, Ltd. d/b/a Park Plaza Hospital sued Mid-Century Insurance Company of Texas seeking additional reimbursement for medical services provided to a patient insured by Mid-Century. 1 *171 Mid-Century filed a plea to the jurisdiction, asserting that Park Plaza Hospital failed to exhaust its administrative remedies with the Division of Workers’ Compensation (DWC) before filing suit. The trial court denied the plea to the jurisdiction, and this petition for writ of mandamus followed. We conditionally grant the petition for writ of mandamus.

Background

Park Plaza Hospital provided medical services to an injured worker insured by Mid-Century and billed Mid-Century $178,496.41 for the services. Mid-Century paid the hospital $48,812.47 for the services billed. Park Plaza asserts that Mid-Century should have paid $98,173.02 (55% of its billed charges) pursuant to Park Plaza’s provider services agreement with Beech Street Corporation, a preferred provider organization. 2 Mid-Century denies any obligation under the services agreement and asserts that its payment of $43,812.47 was proper pursuant to the DWC’s outpatient fee guideline. The dispute resulted in this lawsuit, filed by Park Plaza.

Mid-Century filed a plea to the jurisdiction, asserting that its payment dispute with Park Plaza falls within the exclusive jurisdiction of the DWC such that Park Plaza was required to exhaust its administrative remedies with the DWC before filing this action in state court. Because Park Plaza failed to exhaust its administrative remedies before filing suit, Mid-Century contends, the trial court lacks jurisdiction over this case. The trial court denied Mid-Century’s plea, and Mid-Century filed a petition for writ of mandamus with this Court.

Standard of Review

A plea to the jurisdiction is a dilatory plea; its purpose is “to defeat a cause of action without regard to whether the claims asserted have merit.” Bland Indep. Sch. Dist. v. Blue, 34 S.W.3d 547, 554 (Tex.2000). A plea challenges the trial court’s authority to decide a case. Heckman v. Williamson Cnty., 369 S.W.3d 137, 149 (Tex.2012) (citing Blue, 34 S.W.3d at 553-54). In the context of jurisdictional exclusivity, there is a constitutional presumption that district court jurisdiction “consists of exclusive, appellate, and original jurisdiction of all actions, proceedings, and remedies, except in cases where exclusive, appellate, or original jurisdiction may be conferred by this Constitution or other law on some other court, tribunal, or administrative body.” In re Entergy Corp., 142 S.W.3d 316, 322 (Tex.2004) (quoting Tex. Const, art. V, § 8). But when the legislature grants an administrative agency exclusive jurisdiction over a dispute, the district court lacks jurisdiction to the extent of the agency’s exclusive authority to decide the dispute. See Thomas v. Long, 207 S.W.3d 334, 340 (Tex.2006).

Whether the legislature has conferred exclusive jurisdiction on an agency is a question of statutory interpretation. Blue Cross Blue Shield of Tex. v. Duenez, 201 S.W.3d 674, 675-76 (Tex.2006). In construing statutes, we seek to determine legislative intent by interpreting a statute *172 according to its plain language when the plain language is unambiguous. In re Entergy Corp., 142 S.W.3d at 322 (citing City of San Antonio v. City of Boerne, 111 S.W.3d 22, 25 (Tex.2003)). An agency has exclusive jurisdiction when the legislature expressly grants the agency exclusive jurisdiction or when a “pervasive regulatory scheme” reflects legislative intent that an agency have the sole power to make the initial determination in the dispute. Id,.; Thomas, 207 S.W.3d at 340.

The DWC’s Exclusive Original Jurisdiction

The Workers’ Compensation Act gives the DWC exclusive jurisdiction over certain workers’ compensation disputes relating to entitlement to medical benefits, preauthorization of medical care, and reimbursement of medical expenses. See Tex. Lab.Code Ann. §§ 409.021, 413.031 (West 2011); see also Am. Motorists Ins. Co. v. Fodge, 63 S.W.3d 801, 803 (Tex.2001). “Through the workers’ compensation statutory scheme, the legislature has given a health care provider the right to a review when the provider has rendered a medical service but has been paid a reduced amount for that service.” HealthSouth Med. Ctr. v. Emp’rs Ins. Co. of Wausau, 232 S.W.3d 828, 831 (Tex.App.-Dallas 2007, pet. denied) (citing Tex. Lab.Code Ann. § 413.031(a)(1)). “By granting the Division the sole authority to make an initial determination of a medical fee dispute, the Legislature has given the Division exclusive jurisdiction over such a dispute.” Id. 3

While the DWC’s exclusive jurisdiction expressly extends to disputes over a workers’ compensation insurer’s denial of some or all of the amount of a health care provider’s bills for medical services rendered, see Tex. Lab.Code Ann. § 413.031(a)(1), there is a carve-out for disputes over medical fees for health care provided by certified workers’ compensation networks. See Tex. Ins.Code Ann. §§ 1304.401^405 (West 2009). Original jurisdiction over fee disputes relating to health care provided by a certified workers’ compensation network is vested in the certified network’s own complaint resolution system, which is required and governed by statute. See id.

Park Plaza argues that this action — in which it disputes the amount Mid-Century has paid on its bills for medical services rendered — falls outside the DWC’s exclusive jurisdiction because it is a “private network contract dispute.” According to Park Plaza, the DWC’s jurisdiction extends only to non-network disputes, and this is a network dispute. 4 We disagree with Park Plaza’s contention because the Beech Street network is not a certified *173 “network” and thus its services are “non-network health care,” as those terms are statutorily defined.

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Cite This Page — Counsel Stack

Bluebook (online)
426 S.W.3d 169, 2012 WL 4717884, 2012 Tex. App. LEXIS 8342, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-mid-century-insurance-company-of-texas-texapp-2012.