DWC DISMISSES $18 MILLION IN MEDICAL LIENS

GMK ALERT – Today’s News You Can Use

ISSUE DATE:  Friday, October 2, 2020

IN THIS ALERT: DWC DISMISSES $18 MILLION IN MEDICAL LIENS 

The DWC has issued a final ruling on a long-standing anti-fraud case against convicted medical provider Michael E. Barri, D.C.  At issue was $18 million in medical liens filed in 944 workers’ compensation cases. Dr. Barri was suspended from participating in the workers’ compensation system on April 3, 2017 following a guilty plea to federal conspiracy charges and illegal kickbacks from patients. This chiropractor was involved in a scheme, along with other chiropractors and physicians, involving kickbacks for spine surgeries and submission of fraudulent bills to self-insureds, TPAs and insurance carriers.

Dr. Barri challenged his suspension, but his Writ to the Court of Appeal was denied in 2018 and the matter was sent back to the WCAB. Judge Alan Skelly heard from lien claimants, insurance carriers, and the DIR’s Anti-Fraud Unit on several occasions in hearings before the WCAB, as Dr. Barri attempted to contest discovery related to the 944 outstanding liens. He eventually filed a Notice of Withdrawal with Prejudice for the outstanding liens, and Judge Skelly issued the Order Dismissing Liens from various providers including Tristar Medical Group, Jojaso Management, Inc., Michael E. Barri Chiropractic Corporation, and Michael E. Barri, D.C.

WHAT THIS MEANS FOR YOU 

The 2017 reforms provide a tool to protect employers from being subject to liens from medical providers convicted of a felony or misdemeanor related to fraud or abuse of a patient. The DWC provides a public database of these suspended medical providers, as well as details regarding special lien proceedings against these providers, as a resource to all parties in workers’ compensation proceedings. It is critical that employers, TPAs and insurance carriers subject to payment of medical liens, consult these resources to ensure that medical providers claiming payment of an outstanding lien are not subject to a suspension or are otherwise illegally utilizing the workers’ compensation system when they have been barred from doing so due to their own misconduct. 

Daniel Cadia, Esq. - Woodland Hills