Kennedy v. Novello

299 A.D.2d 605, 750 N.Y.S.2d 175, 2002 N.Y. App. Div. LEXIS 10569
Appellate Division of the Supreme Court of the State of New York·Decided November 7, 2002·Published·Cited by 16 cases

Opinion

Lahtinen, J.

Appeal from an order of the Supreme Court (Cannizzaro, J.), entered September 14, 2001 in Albany County, which, inter alia, granted plaintiff’s motion for summary judgment.

The current dispute between optometrists and ophthalmologists, which was commenced by an ophthalmologist as a citizen taxpayer action (see State Finance Law § 123-b), involves the determination by the Department of Health (hereinafter DOH), after consultation with the Department of Education, to authorize Medicaid reimbursements to optometrists for certain procedures related to eye care. Plaintiff contends that such procedures do not fall within the scope of the practice of optometry as defined in Education Law § 7101 and, thus, that the use of Medicaid funds to reimburse optometrists for the procedures constitutes an illegal expenditure of state funds.

The practice of optometry was redefined by the Legislature in 1995 (L 1995, ch 517, § 1), with a primary purpose of permitting optometrists to use certain drugs therapeutically in their practice (see Mem of Assembly, 1995 McKinney’s Session Laws of NY, at 2212). The statutory definition excluded from the practice of optometry “any injection or invasive modality” and further provided, among other things, that “invasive modality means any procedure in which human tissue is cut, altered, or otherwise infiltrated by mechanical or other means” (Education Law § 7101).

[606] Following enactment of the legislation, the New York State Optometric Association sought to have numerous procedures recognized as falling within the scope of the practice of optometry for purposes of Medicaid reimbursement. DOH consulted with representatives from the optometry and ophthalmology professions regarding the various procedures, but was unable to resolve the status of some of the procedures. As a result, DOH’s Office of Medicaid Management requested an opinion from the Education Department’s Office of Professions (hereinafter Professions Office) as to whether 21 procedures previously approved by the State Board for Optometry fell within the parameters of optometry. In November 1999, the Professions Office notified DOH that it had concluded that 17 of the 21 procedures constituted the practice of optometry and, in April 2000, DOH issued a Medicaid Update indicating that optometrists would be eligible for Medicaid reimbursement for 13 of the procedures. Plaintiff argues that 3 of the 13 approved procedures are statutorily excluded from the practice of optometry.

Briefly described, the procedures in dispute are as follows: (1) closure of the lacrimal punctum, by plug — a procedure involving treatment of chronic dry eye by inserting a collagen or silicon plug into the tear duct (punctum) to prevent tears from draining from the eye; (2) probing the nasolacrimal duct, with or without irrigation — a diagnostic procedure involving probing with a wire stent and possibly irrigating with saline solution the passage through which tears drain into the nose in order to determine whether there is any blockage; and (3) probing the lacrimal canaliculi, with or without irrigation — a procedure similar to probing the nasolacrimal duct except that it involves probing the passage that runs from the punctum to the nasolacrimal duct. Defendants concede that if, during treatment, it is determined that anesthesia is necessary to conduct any of the procedures on a particular patient, then an optometrist cannot perform the procedure.

After the disputed procedures were authorized by DOH, several optometrists were reimbursed in State Medicaid funds for performing some of the procedures. Plaintiff then commenced this action in July 2000 and, eventually, all parties moved for summary judgment. Supreme Court found that each of the procedures constituted an “invasive modality” within the meaning of Education Law § 7101 and, therefore, were not properly practiced by optometrists. The court granted plaintiff’s motion for summary judgment, declared it illegal to provide Medicaid reimbursements to optometrists for performing the procedures [607] and enjoined DOH from using State Medicaid funds to reimburse optometrists for performing the three procedures. This appeal ensued.

Initially, we address the standing of plaintiff to bring this action, an issue which has been asserted on appeal only by defendant Jeffrey Cooper and not by the state defendants. Standing pursuant to State Finance Law § 123-b is narrowly construed (see Rudder v Pataki, 93 NY2d 273, 281; Matter of Transactive Corp. v New York State Dept. of Social Servs., 92 NY2d 579, 589) and we find that the dispositive activity challenged here is the state’s nonfiscal determination that the procedures in question fell within the practice of optometry and not the necessarily concomitant decision by DOH that the subject procedures are covered by Medicaid when performed by optometrists. Accordingly, we do not find “a sufficient nexus to fiscal activities of the State to allow for section 123-b standing” (Rudder v Pataki, supra at 281). Further, plaintiff does not contend that Medicaid funds are not lawfully allocated to DOH nor does he seek to save state funds; instead, he seeks a redistribution of funds that favors ophthalmologists over optometrists. Allegations attacking the “alleged mismanagement of funds or the arbitrary and capricious distribution of funds lawfully allocated to an agency are not covered by section 123-b” (Matter of Transactive Corp. v New York State Dept. of Social Servs., supra at 589).

Free access — add to your briefcase to read the full text and ask questions with AI

Kennedy v. Novello, 299 A.D.2d 605, 750 N.Y.S.2d 175, 2002 N.Y. App. Div. LEXIS 10569 (N.Y. Ct. App. 2002).

299 A.D.2d 605 (Kennedy v. Novello) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Matter of North Shore Hematology-Oncology Assoc., P.C. v. New York State Dept. of Health
2024 NY Slip Op 05165 (Appellate Division of the Supreme Court of New York, 2024)
Schulz v. Silver
134 A.D.3d 1369 (Appellate Division of the Supreme Court of New York, 2015)
Avenue Nursing Home & Rehabilitation Centre v. Shah
112 A.D.3d 1178 (Appellate Division of the Supreme Court of New York, 2013)
Feminists Choosing Life of New York, Inc. v. Empire State Stem Cell Board
87 A.D.3d 47 (Appellate Division of the Supreme Court of New York, 2011)
Lewis Family Farm, Inc. v. New York State Adirondack Park Agency
64 A.D.3d 1009 (Appellate Division of the Supreme Court of New York, 2009)
McAllan v. New York State Department
60 A.D.3d 464 (Appellate Division of the Supreme Court of New York, 2009)
Emigrant Bancorp, Inc. v. Commissioner of Taxation & Finance
59 A.D.3d 30 (Appellate Division of the Supreme Court of New York, 2008)
Golden v. Paterson
23 Misc. 3d 641 (New York Supreme Court, 2008)
Humane Society of United States v. Empire State Development Corp.
53 A.D.3d 1013 (Appellate Division of the Supreme Court of New York, 2008)
East End Property Co. 1 v. Kessel
46 A.D.3d 817 (Appellate Division of the Supreme Court of New York, 2007)
American Ass'n of Bioanalysts v. New York State Department of Health
33 A.D.3d 1138 (Appellate Division of the Supreme Court of New York, 2006)
Huron Group, Inc. v. Pataki
2004 NY Slip Op 24240 (New York Supreme Court, Erie County, 2004)
Huron Group, Inc. v. Pataki
5 Misc. 3d 648 (New York Supreme Court, 2004)