UPMC Benefit Management Services, Inc. d/b/a UPMC Work Partners v. United Pharmacy Services (Bureau of Workers' Compensation Fee Review Hearing Office)

CourtCommonwealth Court of Pennsylvania
DecidedDecember 15, 2022
Docket558 C.D. 2021
StatusPublished

This text of UPMC Benefit Management Services, Inc. d/b/a UPMC Work Partners v. United Pharmacy Services (Bureau of Workers' Compensation Fee Review Hearing Office) (UPMC Benefit Management Services, Inc. d/b/a UPMC Work Partners v. United Pharmacy Services (Bureau of Workers' Compensation Fee Review Hearing Office)) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
UPMC Benefit Management Services, Inc. d/b/a UPMC Work Partners v. United Pharmacy Services (Bureau of Workers' Compensation Fee Review Hearing Office), (Pa. Ct. App. 2022).

Opinion

IN THE COMMONWEALTH COURT OF PENNSYLVANIA

UPMC Benefit Management Services, : Inc. d/b/a UPMC Work Partners, : Petitioner : : v. : : United Pharmacy Services (Bureau : of Workers’ Compensation Fee : Review Hearing Office), : No. 558 C.D. 2021 Respondent : Argued: June 22, 2022

BEFORE: HONORABLE RENÉE COHN JUBELIRER, President Judge HONORABLE PATRICIA A. McCULLOUGH, Judge HONORABLE CHRISTINE FIZZANO CANNON, Judge HONORABLE ELLEN CEISLER, Judge HONORABLE LORI A. DUMAS, Judge

OPINION BY JUDGE FIZZANO CANNON FILED: December 15, 2022

UPMC Benefit Management Services, d/b/a UPMC Work Partners (UPMC), petitions for review of the April 23, 2021 decision of the Bureau of Workers’ Compensation (Bureau) Medical Fee Review Hearing Office (Hearing Office). The Hearing Office reversed the dismissal by the Health Care Services Review Division of the Bureau’s Fee Review Section (Fee Review Section) of three fee review applications submitted by United Pharmacy Services (Pharmacy), as prematurely filed. Upon review, we affirm the Hearing Office’s decision. I. Background In October 2019, Lisa Cass (Claimant) sustained a work-related injury while in the employ of Pinnacle Health Medical Services (Employer). Hearing Off. Decision, 4/23/21 at 1, Finding of Fact (F.F.) 1, Reproduced Record (R.R.) at 52a. Claimant’s injury was accepted by a medical-only notice of compensation payable (NCP) as “lower back area sprain/low back sprain from picking up a laptop bag.” Id. In January 2020, Claimant was prescribed compound cream with instructions to apply one to three pumps to the affected area two to four times daily, as needed. F.F. 3. Between January and April 2020, Pharmacy issued three separate bills, each requesting payment of $2,249.98 for the compound cream dispensed to Claimant. F.F. 4-6. UPMC denied payment on the basis that the prescribed treatment was “not work related.” F.F. 4-6. Between March and June 2020, Pharmacy filed three applications for fee review pursuant to Section 306(f.1) of the Workers’ Compensation Act (Act),1 77 P.S. § 531, disputing UPMC’s failure to pay the bills. F.F. 1 & 7; see also Fee Review Applications, R.R. at 4a-5a, 13a-14a & 24a-25a. The Fee Review Section denied each of Pharmacy’s fee review applications as prematurely filed on the basis that the issue of the “causal relatedness” of the prescribed compound cream to the work injury remained outstanding. F.F. 8. Pharmacy requested a hearing to contest the three fee review determinations, asserting that the applications were not premature because Claimant’s injury was accepted by Employer, no party petitioned for utilization review, and UPMC’s 30-day period in which to remit payment following receipt of the disputed bills had lapsed. F.F. 9-10 & 13.

1 Act of June 2, 1915, P.L. 736, as amended, 77 P.S. §§ 1-1041.4, 2501-2710. 2 By decision circulated April 23, 2021, the Hearing Office reversed the determinations of the Fee Review Section and ordered UPMC to issue payment plus statutory interest to Pharmacy for the medications dispensed to Claimant. Hearing Off. Decision, 4/23/21 at 1 & 6-7, R.R. at 50a & 55a-56a. The Hearing Office reasoned that UPMC’s denial of payment on the basis of lack of “causal relatedness” did not render Pharmacy’s fee review application premature, because this “defense” in fact constituted a challenge to the reasonableness and necessity of Claimant’s treatment, which UPMC should have disputed through the utilization review process. See Hearing Off. Decision, 4/23/21 at 6, R.R. at 55a (first citing Workers’ First Pharmacy Servs., LLC v. Bureau of Workers’ Comp. Fee Rev. Hearing Off. (Gallagher Bassett Servs.), 225 A.3d 613 (Pa. Cmwlth. 2020); and then citing Omni Pharmacy Servs., LLC v. Bureau of Workers’ Comp. Fee Rev. Hearing Off., 241 A.3d 1273, 1274 (Pa. Cmwlth. 2020), reargument denied (Dec. 18, 2020), appeal denied sub nom. Omni Pharmacy Servs., LLC v. Bureau of Workers’ Comp. Fee Rev. Hearing Off. (Am. Interstate Ins. Co.), 257 A.3d 1212 (Pa. 2021)). Further, the Hearing Office concluded that Crozer Chester Medical Center v. Department of Labor and Industry, Bureau of Workers’ Compensation Health Care Services Review Division, 22 A.3d 189 (Pa. 2011) (Crozer Chester II), was inapposite, as that case turned on whether the provider had alleged sufficient facts in support of its request for mandamus relief to compel issuance of a fee review determination. Hearing Off. Decision, 4/23/21 at 6, R.R. at 55a. The Hearing Office, therefore, determined that Pharmacy did not file the three fee review applications prematurely. See id. at 6, R.R. at 55a (citing Workers’ Compensation (WC) Regul. 127.255, 34 Pa. Code § 127.255). The Hearing Office concluded that UPMC failed to meet its

3 burden of proving by a preponderance of the evidence that it properly reimbursed Pharmacy. Id. (citing WC Regul. 127.255(f); 34 Pa. Code § 127.259(f)). UPMC petitioned this Court for review.2

II. Issues Before this Court,3 UPMC argues that the Hearing Office erred in applying Workers’ First and Omni to determine that Pharmacy’s fee review applications were not prematurely filed where the dispute “turn[ed] solely on . . . liability for a particular medical treatment.” UPMC’s Br. at 21. UPMC contends that even where a claimant’s injury is accepted by means of an open NCP, “the insurer may nonetheless question liability for a particular treatment.” Id. at 21 (quoting Crozer Chester II, 22 A.3d at 195); see also Crozer Chester II, 22 A.3d at 197 (explaining that “liability for an injury is distinct from liability for a particular treatment or its cost. The NCP, even if ‘open’ and binding with respect to liability for the injury, is not dispositive as to the medical care provider’s claim for reimbursement for the cost of a particular treatment.”). Further, UPMC asserts that utilization review may not decide the causal relationship between the treatment under review and the employee’s work-related injury. See id. at 14 (citing WC

2 Simultaneously with the filing of its petition for review, UPMC filed an application for supersedeas, which this Court ultimately denied by order dated August 5, 2021. See Cmwlth. Ct. Order, 8/5/21. 3 Our review in medical fee review cases determines whether constitutional rights were violated, whether an error of law was committed, or whether the necessary findings of fact were supported by substantial evidence. Workers’ First Pharmacy Servs., LLC v. Bureau of Workers’ Comp. Fee Rev. Hearing Off. (Gallagher Bassett Servs.), 225 A.3d 613, 616 n.3 (Pa. Cmwlth. 2020). Regarding questions of law, our scope of review is plenary and our standard of review is de novo. Id. 4 Regul. 127.406(b)(1), 34 Pa. Code § 127.406(b)(1)).4 UPMC maintains that “[i]n cases in which liability for a particular treatment is at issue, the claimant, not the medical provider, must pursue compensation before a workers’ compensation judge in the regular course.” Id. at 17 (quoting Crozer Chester II, 22 A.3d at 195 (first citing Section 306(f.1) of the Act, 77 P.S. § 531(6)(iv) (utilization review); and then Section 401.1 of the Act, added by the Act of February 8, 1972, P.L. 25, 77 P.S. § 710 (liability for compensation generally))). UPMC contends that our Supreme Court’s decision in “Crozer Chester [II] supersedes this Court’s analyses in both Workers’ First [] and Omni pursuant to the doctrine of stare decisis.” Id. at 19 (citing Rodriguez v. Workers’ Comp. Appeal Bd. (Adecco Grp. N. Am.) (Pa. Cmwlth., No. 869 C.D. 2019, filed Jan. 6, 2021)). UPMC requests that this Court reverse the Hearing Office’s April 23, 2021 decision and dismiss Pharmacy’s three fee review applications. Id. at 2 & 23.

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

Related

Beissel v. Workmen's Compensation Appeal Board
465 A.2d 969 (Supreme Court of Pennsylvania, 1983)
Hough v. Workers' Compensation Appeal Board
928 A.2d 1173 (Commonwealth Court of Pennsylvania, 2007)
Topps Chewing Gum v. Workers' Compensation Appeal Board
710 A.2d 1256 (Commonwealth Court of Pennsylvania, 1998)
Kurtz v. Workers' Compensation Appeal Board (Waynesburg College)
794 A.2d 443 (Commonwealth Court of Pennsylvania, 2002)
Catholic Health Initiatives v. Heath Family Chiropractic
720 A.2d 509 (Commonwealth Court of Pennsylvania, 1998)
CVA, Inc. v. Workers' Compensation Appeal Board
29 A.3d 1224 (Commonwealth Court of Pennsylvania, 2011)
Gens v. Workmen's Compensation Appeal Board
631 A.2d 804 (Commonwealth Court of Pennsylvania, 1993)
Mahon v. Workers' Compensation Appeal Board
835 A.2d 420 (Commonwealth Court of Pennsylvania, 2003)
Listino v. Workmen's Compensation Appeal Board
659 A.2d 45 (Commonwealth Court of Pennsylvania, 1995)
Roadway Express, Inc. v. Workers' Compensation Appeal Board
723 A.2d 1076 (Commonwealth Court of Pennsylvania, 1999)
In the Interest of L.J.
79 A.3d 1073 (Supreme Court of Pennsylvania, 2013)
Commonwealth v. Walter
93 A.3d 442 (Supreme Court of Pennsylvania, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
UPMC Benefit Management Services, Inc. d/b/a UPMC Work Partners v. United Pharmacy Services (Bureau of Workers' Compensation Fee Review Hearing Office), Counsel Stack Legal Research, https://law.counselstack.com/opinion/upmc-benefit-management-services-inc-dba-upmc-work-partners-v-united-pacommwct-2022.