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James Holland v. Meramec Mechanical Inc.

Decision date: March 24, 2021Injury #12-03417710 pages

Summary

The Commission affirmed the administrative law judge's award that the health care provider's application for payment of additional reimbursement of medical fees was not timely filed under § 287.140.4, RSMo. The court rejected the provider's argument that the statute version effective on the date of injury should apply, holding that medical fee disputes are governed by the statute version effective on the date services were provided, not the date of the original workers' compensation injury.

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Caption

FINAL AWARD
(Affirming Award on Medical Fee Dispute with Supplemental Opinion)
Injury No.: 12-034177
Medical Fee Dispute No.: 12-01412
Employee:James Holland
Employer:Meramec Mechanical Inc.
Insurer:Secura Insurance
Health Care Provider:St. Louis Spine & Orthopedic Surgery Center
Pursuant to the provisions of § 287.140, RSMo and 8 CSR 50-2.030, the above-captioned award is submitted to the Labor and Industrial Relations Commission (Commission) for review under § 287.480, RSMo. We have reviewed the evidence and considered the whole record. Pursuant to § 286.090, RSMo, we affirm the award and decision of the administrative law judge. We adopt the findings, conclusions, decision, and award of the administrative law judge with this supplemental opinion.
Discussion
A Medical Fee Dispute Award was issued by an administrative law judge on November 24, 2020. The administrative law judge ruled that an Application for Payment of Additional Reimbursement of Medical Fees by the health care provider in this dispute was not timely filed as required by § 287.140.4, RSMo.
The Health Care Provider (HCP) filed a timely application for review to the Commission on December 9, 2020. In its application for review, the HCP alleges that the Division erred in applying the version of § 287.140.4, RSMo, as effective on January 1, 2014, instead of the version that was effective as of the date of injury for the related workers’ compensation claim, or May 8, 2012.
The HCP argues that the applicable statutory version for the medical fee dispute should be the same as what applies to the workers’ compensation claim. Citing 8 CSR 50-2.030(E), the HCP points out that there would be no jurisdiction for a medical fee dispute without a filed workers’ compensation claim. Accordingly, the medical fee dispute is part of the claim and the same statutory version should apply.
Furthermore, the HCP argues that by applying the 2014 version of the statute, which contains a time limitation to file a medical fee dispute, the administrative law judge erroneously and retroactively applied a substantive law.
We point out that the services at issue in this dispute were provided to employee on January 21, 2014, after the statute of limitations became effective. The HCP received a check from employer/insurer, and an explanation of what the employer/insurer disputed, by the time the HCP deposited the check on March 17, 2014. The HCP sent a letter to employer/insurer on

Injury No.: 12-034177

Medical Fee Dispute No.: 12-01412

Employee: James Holland

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April 7, 2014, acknowledging the payment. The HCP did not file its medical fee dispute until October 26, 2015.¹

Which Statute Applies

"Generally, the date of injury for a workers' compensation claim is used to calculate the statute of limitations and determine which version of the workers' compensation law applies. The statute of limitations for filing a claim for workers' compensation benefits is controlled by the date of injury." *Hayden v. Cut-Zaven, Ltd.*, 614 S.W.3d 44, 61-62 (Mo. App. 2020).

However, a medical fee dispute claim is not a claim for workers' compensation, does not directly involve the employee, and is not controlled by the date of employee's injury. On the contrary, Section 287.140.4, RSMo, as effective on January 1, 2014, provides:

> The division shall, by regulation, establish methods to resolve disputes concerning the reasonableness of medical charges, services, or aids. This regulation shall govern resolution of disputes between employers and medical providers over fees charged, whether or not paid, and shall be in lieu of any other administrative procedure under this chapter. The employee shall not be a party to a dispute over medical charges, nor shall the employee's recovery in any way be jeopardized because of such dispute. Any application for payment of additional reimbursement, as such term is used in 8 CSR 50-2.030, as amended, shall be filed not later than:

>

> (1) Two years from the date the first notice of dispute of the medical charge was received by the health care provider if such services were rendered before July 1, 2013; and

>

> (2) One year from the date the first notice of dispute of the medical charge was received by the health care provider if such services were rendered after July 1, 2013.

The pertinent dates in this statute of limitations are the dates of service and the date of "the first notice of dispute of the medical charge [as] received by the health care provider[.]" In this matter, the date of service and the date of notice both occurred after January 1, 2014, when this version of the statute became effective. There is nothing in the statute instructing the Division or the Commission to apply the prior version of the Section 287.140.4, RSMo, to matters where the date of injury precedes January 1, 2014.

This interpretation appears to be upheld by the Missouri Court of Appeals in *Chesterfield Spine Ctr., LLC v. Best Buy Co., Inc.*, No. WD83757 (Jan. 12, 2021). The *Chesterfield Spine Ctr.*

¹ On page 3 of the award, the administrative law judge listed September 26, 2015, as the filing date of the medical fee dispute. However, this was a typographical error. The actual filing date was October 26, 2015. See *Transcript*, p. 25.

Injury No.: 12-034177

Medical Fee Dispute No.: 12-01412

Employee: James Holland

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LLC, matter also involved a medical fee dispute where the date of injury preceded January 1, 2014, but the dates of service and the date of first notice occurred after January 1, 2014. The administrative law judge applied the new law and held that the health care provider was time barred from its medical fee dispute. The health care provider appealed up to the court of appeals.

The court recited the health care provider's argument that

in Missouri, workers' compensation claims are governed by the law in effect when the injured employee's claim was filed. Because the one-year limitations period in § 287.140.4 was not in effect when the employee's underlying claim was filed (2013), the limitations period does not apply to the Application, and the Commission's finding to the contrary violates the constitutional prohibition on retrospective application of laws.

Id., at 19.

However, the court appeared to reject this argument by holding that the application of the new law was not retrospective because the dates of service came after January 1, 2014. The court stated,

Here, the only parties affected by the one-year statute of limitations are [the health care provider] and the Employer/Insurer, the transaction at issue was the provision of approved medical services in December 2015, and the one-year limitations period went into effect on January 1, 2014. This case does not involve the retrospective application of a statute.

Id. at 21-22.

Based on the above, we conclude that the administrative law judge's application of the version of § 287.140.4, RSMo, as effective on January 1, 2014, was proper.

**Conclusion**

We affirm the award of the administrative law judge as supplemented herein.

Employer/insurer is not liable to health care provider for additional reimbursement of medical fees.

The award and decision of Administrative Law Judge Lee B. Schaefer is attached and incorporated herein.

Impolyee: James Holland

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Given at Jefferson City, State of Missouri, this **24th** day of March 2021.

LABOR AND INDUSTRIAL RELATIONS COMMISSION

**Robert W. Cornejo**, Chairman

**Reid K. Forrester**, Member

**Shalonn K. Curls**, Member

**Attest:**

**Secretary**

MEDICAL FEE DISPUTE AWARD

Healthcare Provider:St. Louis Spine \& Orthopedic Surgery <br> CenterInjury No.: 12-034177 <br> MFD No.: 12-01412
Employer:Meramec Mechanical, Inc.Before the <br> Division of Workers' <br> Compensation <br> Department of Labor and Industrial <br> Relations of Missouri
Insurer:Secura InsuranceJefferson City, Missouri <br> Division of Workers'
Employee:James HollandChecked by: LBS

The parties appeared before the undersigned administrative law judge on October 19, 2020, for a Final Hearing in this matter. Attorneys Jack Spooner and Christopher Johnson represented Healthcare Provider, St. Louis Spine \& Orthopedic Surgery Center ("HCP"). Attorney Joshua Friel represented Meramec Mechanical, Inc. ("Employer"), and Secura Insurance ("Insurer'). The injured employee in the underlying Workers' Compensation case was James T. Holland, Sr. ("Claimant). The record was closed in this matter on October 26, 2020.

On or about May 8, 2012, while in the employment of Employer, Claimant sustained an injury arising out of and in the course and scope of his employment. The injury fell under the jurisdiction of the St. Louis office of the Missouri Division of Workers' Compensation. Employer/Insurer had notice of the injury and filed a Report of Injury. A Claim for Compensation was filed within the time required by law.

A Medical Fee Dispute ("MFD") arose during Claimant's medical treatment, and an Application for Payment of Additional Reimbursement of Medical Fees was filed by the HCP on October 26, 2015. An Answer to the Application for Payment of Additional Reimbursement of Medical Fees was filed on February 26, 2016, with subsequent Answers filed after that date.

An Application for Evidentiary Hearing was filed by HCP on January 19, 2016.

EXHIBITS

HCP offered and had admitted into evidence the following Exhibits:

Exhibit 1: Affidavit of Christine Frederick

Exhibit 1A: Business records of HCP

Exhibit 2: Stipulation between the parties

Exhibit 3: 8 CSR 50-2.030(1)(C) Proof of Service

Issued by DIVISION OF WORKERS' COMPENSATION

Injury No. 12-034177

Employer/Insurer offered and had admitted into evidence the following Exhibits:

- Exhibit A: Affidavit of Secura

- Exhibit B: Review Analysis of the medical bills

- Exhibit C: Check from Insurer to HCP

- Exhibit D: Letter from HCP to CompLogic Healthcare Systems dated April 7, 2014

STIPULATIONS

The parties entered into a Stipulation of Facts, as contained in Exhibit 2, as follows:

  1. The affirmative defense raised in this MFD is that the Application for Additional Payment of Medical Fees was not timely filed and, therefore, is time barred under Section 287.140.4 (2).
  2. For purposes of this MFD Hearing only, $10,943.55 is the amount stipulated as the fair and reasonable fee.
  3. An underlying Claim for Compensation was filed with the Division of Worker’s Compensation in this matter.
  4. The Application for Payment of Additional Reimbursement of Medical Fees was filed with the Division of Workers’ Compensation on October 26, 2015, and delivered by HCP to Insurer in accordance with Chapter 287 RSMo.
  5. The Application for Payment of Additional Reimbursement of Medical Fees is a demand on the Insurer to pay an additional $10,943.55.
  6. To expedite the hearing, the parties agreed to forego live witness testimony at the hearing, and stipulate that certain documents are admissible.
  7. The Affidavit of Christine Frederick (Exhibits 1 & 1A) is admitted into evidence and made part of this record.
  8. The following Exhibits from Insurer are admitted and made part of this records: Affidavit of Secura (Exhibit A), Review Analysis (Exhibit B), Check (Exhibit C), and Letter from Employer (Exhibit D).

ISSUES

The issues to be determined in this Hearing are:

  1. Did the HCP file its Application for Additional Reimbursement of Medical Bills within the limitations period under Section 287.140.4(2)?
  2. Is the HCP entitled to payment under its Application for Additional Reimbursement of Medical Bills, including prejudgment interest?

Only evidence supporting the award will be summarized. Objections not ruled on during the hearing or in this award are overruled. Marks or highlights contained in the exhibits were made prior to being made part of this record

Full decision text continues in the plain-text archive copy.

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