Tracor/MBA v. Baptist Medical Center

780 S.W.2d 26, 29 Ark. App. 198, 1989 Ark. App. LEXIS 587
CourtCourt of Appeals of Arkansas
DecidedNovember 22, 1989
DocketCA 89-70
StatusPublished
Cited by4 cases

This text of 780 S.W.2d 26 (Tracor/MBA v. Baptist Medical Center) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tracor/MBA v. Baptist Medical Center, 780 S.W.2d 26, 29 Ark. App. 198, 1989 Ark. App. LEXIS 587 (Ark. Ct. App. 1989).

Opinions

Donald L. Corbin, Chief Judge.

This appeal comes to us from the Arkansas Workers’ Compensation Commission. Appellant, Tracor/MBA, appeals from an order of the full Commission entered October 12, 1988, which affirmed the opinion of the administrative law judge as modified and awarded appellee, Baptist Medical Center, medical expenses totaling $200,932.05. We reverse and remand.

It is undisputed that Sandra Bearden was critically burned in an explosion at appellant’s munitions plant on December 19, 1983, and was hospitalized for 124 days thereafter. Appellee submitted a computerized bill to appellant in the amount of $201,490.30 for the care and treatment of Ms. Bearden during her hospitalization. Appellant presented this bill to its insurance company, Northwestern National, who hired Intracorp to perform an audit of the charges as was its standard business practice with large medical bills. The audit, performed by employee Iva Moss, indicated that appellee’s computerized bill revealed errors resulting in $25,267.47 in reductions leaving a balance due of $176,222.83. Appellee did not perform its own audit but instead accepted Intracorp’s audit for insurance purposes.

Appellant paid $138,434.44 of the bill and disputed payment of the amount of reduction reflected in the audit. The case proceeded to a hearing before an administrative law judge on October 9, 1985, who found that appellant should pay a total amount of $176,664.83 of charges on the bill indicating that the audit conducted by Intracorp properly reflected the amount due with one deduction in the amount of $442.00. Appellee appealed this determination to the full Commission which affirmed the administrative law judge’s decision as modified and awarded appellee medical expenses in the full amount billed, less $558.25 for a Maalox medication error made by appellee’s staff leaving a balance due of $200,932.05. It is from this decision that appellant brings this appeal.

Appellant raises the two points for reversal which are set out below:

I.
THE FULL COMMISSION’S DECISION AWARDING APPELLEE MEDICAL EXPENSES IN THE AMOUNT OF $200,932.05 IS CONTRARY TO ARK. CODE ANN. § 11-9-517 AND IS NOT SUPPORTED BY SUBSTANTIAL EVIDENCE.
II.
THE FULL COMMISSION’S AWARD OF ATTORNEY’S FEES TO THE ATTORNEY FOR THE APPELLEE IS NOT SUPPORTED BY SUBSTANTIAL EVIDENCE AND INSTEAD THE FULL COMMISSION SHOULD HAVE AWARDED ATTORNEY’S FEES TO THE ATTORNEY FOR THE APPELLANT.

Under its first point for reversal, appellant argues that appellee was not entitled to payment for the entire amount of its computerized bill because the audit revealed that over $25,000.00 of charges were undocumented and therefore unreasonable within the parameters of the Workers’ Compensation Act, specifically Arkansas Code Annotated Section 11-9-517 (1987). That statute provides as follows:

The commission is authorized to establish rules and regulations, including schedules of maximum allowable fees for specified medical services rendered with respect to compensable injuries, for the purpose of controlling the cost of medical and hospital services and supplies provided pursuant to §§ 11-9-508 — 11-9-516. [Emphasis supplied.]

Appellant argues that the legislature’s purpose in passing the above legislation was to encourage the Commission to control medical costs. However, appellant contends that the Commission’s decision in the present case reflects its refusal to control costs because it did not require appellee, as the medical provider, to prove that the medical services and supplies in question were reasonable and necessary as required by Arkansas Code Annotated § 11-9-513 (1987) or that they were ever actually provided at all.

We find merit in appellant’s argument because we believe there were questions to be decided as to the accuracy and reliability of the computerized bill submitted to appellant and as to whether appellee, Baptist Medical Center, had, in fact, furnished the services and supplies in question to Sandra Bearden. Therefore, the issue presented for decision concerns the degree and nature of proof required from a hospital to sustain its claim for the costs of medicals provided to its patient.

The proof offered by appellee to meet its burden of establishing the reasonableness and necessity of its charges was presented through the computerized bill and the testimony of Ann Schweitzer, nurse in charge of the Intensive Care Unit, and Larry Lazenby, Vice-President of Baptist Medical Center.

Nurse Schweitzer’s testimony explained the care and treatment given to Ms. Bearden and how Bearden’s account was charged for items and services used in her care. She explained the special procedures to be followed with burn patients to decrease their exposure to infection by use of sterile gowns, gloves, etc., by all those with whom the patient comes in physical contact. Additionally, clean caps, masks, and booties must be put on each time one enters the patient’s room. Schweitzer explained that Bearden was required to use a special Clinitron bed which prevents burn victims from having undue pressure on their skin and bones. She further explained the necessity of sterile Clinitron sheets over the bed. Schweitzer further explained that burns require constant debriding (removal of dead skin) and that the staff used Chux, an unsterile pad, during this procedure to keep the sheet from becoming wet.

Nurse Schweitzer explained that the Intensive Care Unit has a computer terminal at the nurses station from which one can call up a particular patient’s name and then order whatever is needed for the care and treatment of that patient. Upon receipt, the ordered items are taken to the patient’s room or restocked in the central supply area. She explained that under appellee’s standard of care, all medications are required to be documented and that the staff strives to do so 100% of the time; however, perfection is not always achieved because Intensive Care Unit staff members do not always have ample time to make documentation on a patient’s chart as to “what is done with the patient and for the patient.”

Larry Lazenby explained that appellee, Baptist Medical Center, routinely conducts internal audits to insure the best operational procedures and documentation of records — medical, ordering, purchasing, and outside materials management. He explained that when nurses order any item or drug for a patient on the computer terminal, it automatically prints the order in the receiving department and charges the patient’s file.

Appellant presented testimony of Iva Moss who performed the audit of the bill in question. She related that medical record charts should contain all clinical information regarding a patient’s treatment and her audit was compiled utilizing all information provided her from appellee. Moss testified regarding the procedure whereby she arrived at the undocumented charges exceeding $25,000.00. To determine the accuracy of the charges and the applicability of all charges on the bill, she stated that she itemized each entry on the bill, its cost, and the amount. Charges were placed in three categories: those not documented, those not related to the injury, and undercharges. Moss testified that she compared the notations and contents of Ms.

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Tracor/MBA v. Baptist Medical Center
780 S.W.2d 26 (Court of Appeals of Arkansas, 1989)

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Bluebook (online)
780 S.W.2d 26, 29 Ark. App. 198, 1989 Ark. App. LEXIS 587, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tracormba-v-baptist-medical-center-arkctapp-1989.