Reeder v. State ex rel. Department of Social Services

578 N.W.2d 435, 254 Neb. 707, 1998 Neb. LEXIS 140
CourtNebraska Supreme Court
DecidedMay 29, 1998
DocketNo. S-96-937
StatusPublished
Cited by1 cases

This text of 578 N.W.2d 435 (Reeder v. State ex rel. Department of Social Services) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reeder v. State ex rel. Department of Social Services, 578 N.W.2d 435, 254 Neb. 707, 1998 Neb. LEXIS 140 (Neb. 1998).

Opinion

Stephan, J.

Randy Reeder, a recipient of public assistance for home health care services, brought this action against the State of Nebraska through its Department of Social Services (DSS) pursuant to Nebraska’s State Tort Claims Act, Neb. Rev. Stat. § 81-8,209 et seq. (Reissue 1996). Reeder contends that DSS is vicariously liable for the negligence of a nurse whom it approved to provide services for him. In the alternative, Reeder contends that DSS breached an independent duty to provide adequate nursing services. Reeder appeals from an order of the district court for Hall County entering summary judgment for DSS. We determine that while the district court correctly found as a matter of law that DSS owed no independent duty to provide nursing services to Reeder, it erred in entering summary judgment for DSS because of genuine issues of material fact with respect to Reeder’s alternative theory of recovery based upon respondeat superior.

FACTUAL AND PROCEDURAL BACKGROUND

Viewing the evidence in a light most favorable to Reeder, as is required in appellate review of a summary judgment, the facts are as follows: On May 5, 1990, Reeder was in an automobile accident which left him paralyzed below the neck, with limited use of his hands. Reeder was released from the hospital on March 4, 1991, and, due to his disability, required home health care. Reeder learned that Sheri Perales, a licensed practical nurse (LPN), was seeking employment and asked her if she would be interested in supplying certain services for him. Perales accepted the job.

DSS administers various programs, including the Aged and Disabled Medicaid Waiver program, through which state and [709]*709federal funds are used to provide home and community-based services to elderly and disabled persons in Nebraska. Under these programs, individuals requiring assistance usually choose their own service providers, but if requested, DSS will furnish a list of potential providers. Before becoming eligible to receive compensation under programs administered by DSS, a service provider is required to complete certain documentation and obtain DSS approval. This process includes an interview with a DSS caseworker, during which the provider is given a manual detailing services covered by the program. In addition, the caseworker usually obtains references and conducts a police check on the provider.

After agreeing to accept the position with Reeder, Perales completed the documentation necessary to be approved by DSS as a medicaid service provider in the capacities of personal care aide (PCA) and LPN. No special training was required to be a PCA, but before Perales could begin providing services to Reeder as an LPN, it was necessary for DSS to ensure that her Nebraska license was current. In the “Medical Assistance Provider Agreements]” which Perales signed in order to be a provider of services under programs administered by DSS, she agreed to follow DSS policies and procedures. The regulations applicable to LPN’s define “[c]overed [s]ervices” as those “ordered by the client’s physician based on medical necessity.” 471 Neb. Admin. Code, ch. 13, § 002 (1990). The regulations define “[s]killed nursing services” as “those services provided by a registered nurse or a licensed practical nurse which s/he is licensed to perform. Private-duty nursing may be provided in the client’s home or current living arrangement.” Id. The regulations require DSS local office personnel to obtain the physician’s order for private-duty nursing services, “[authorize the number of hours to be worked based on the physician’s order and the client’s medical need[,]” and submit certain documentation. 471 Neb. Admin. Code, ch. 13, § 005 (1990). The regulations also specify billing and payment procedures.

In March 1991, DSS obtained an order from Reeder’s physician which stated that he required the services of an LPN for 1 to 2 hours per day and a PCA for 4 to 5 hours per day. Subsequently, DSS developed a care plan for Reeder detailing [710]*710the types and frequency of services required. Beyond the terms of the care plan, DSS allowed Reeder and Perales to decide the details of their arrangement, such as the hours Perales would perform her duties.

Perales testified that she believed DSS to be her employer, but she also stated that during the time she was paid by DSS, she was self-employed. Perales also testified that DSS caseworker Dorelle Wilson was her supervisor and that Wilson “assured that... the care was given and [Reeder] had somebody there for his needs.” Perales testified that occasionally Wilson visited Reeder’s home to “make sure things were going okay.” If Perales had any problems, she would notify Wilson and request assistance. Perales also notified Wilson if she needed to work more hours than were approved under the care plan, because additional hours had to be approved in order to be reimbursed by DSS. Paula Greenfield, a DSS supervisor, testified that Perales was not prohibited from performing additional, noncovered services for Reeder, but that if Perales did so, Reeder was responsible for paying her.

Greenfield testified that DSS is concerned about the safety of its clients. DSS conducts police checks before approving care providers and refuses to use a provider in the future if DSS becomes aware of any improper activity. DSS monitors the activities of care providers by reviewing the timesheets submitted with their bills. The timesheets include a brief statement of what services were performed in the billing period and are signed by both the provider and the client. In the present case, Perales was paid by the hour. No income taxes were withheld from her paychecks, but Social Security and FICA taxes were paid by the State for both Perales and Reeder.

DSS considered medicaid service providers such as Perales to be independent contractors. Providers received no insurance or other benefits and were not paid for overtime, holidays, or sick days. Greenfield testified that DSS was an “agent for monitoring and payment” and for distributing funds under government programs.

In May 1991, while Perales was providing services to Reeder, he developed decubitus ulcers on his heels. Reeder and Perales decided to take Reeder to a podiatrist for treatment of [711]*711this condition. Perales notified Wilson that Reeder had been seen by the podiatrist regarding the decubitus ulcers. Perales followed the podiatrist’s orders in caring for Reeder. The ulcers never healed properly, and an infection developed. Reeder underwent a lengthy period of hospitalization and treatment, and may require amputation of his feet.

On December 30, 1993, Reeder filed suit against DSS pursuant to the State Tort Claims Act, alleging that DSS was negligent “[i]n failing to give appropriate instructions and training to the nurse it approved for the care of the Plaintiff’ and “[i]n failing to exercise reasonable care in supplying and providing nursing services to the Plaintiff.” In its answer, DSS alleged that there was no negligence on the part of any of its employees and that Perales “was a licensed practical nurse functioning as an independent contractor under a provider agreement and as such is not an employee” for whose negligence the State could be liable under the State Tort Claims Act.

DSS moved for summary judgment.

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Related

Reeder v. STATE, DEPT. OF SOCIAL SERVICES
578 N.W.2d 435 (Nebraska Supreme Court, 1998)

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Bluebook (online)
578 N.W.2d 435, 254 Neb. 707, 1998 Neb. LEXIS 140, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reeder-v-state-ex-rel-department-of-social-services-neb-1998.