Kiesel Boucher Larson files class action claim against the State of California on behalf of emergency physicians
December 23rd, 2009
Kiesel Boucher Larson has filed a class action lawsuit on behalf of a statewide coalition of emergency room physicians against the State of California Department of Health Care Services alleging that a flawed financial structure for the State’s emergency departments is putting the entire system at risk of collapse.
“This lawsuit should serve as a wake-up call to all Californians that their access to emergency care—our safety net—is in jeopardy,” asserted Raymond Boucher of Kiesel Boucher Larson, the lead counsel for the plaintiffs.
Californians currently rank last in both emergency room access and emergency departments per capita. Despite considerable population growth, 85 hospitals and 55 emergency rooms have closed over the past ten years making California first in the nation in emergency department closures. Nearly two dozen hospitals in Los Angeles and Orange counties alone are in dire financial straits and in danger of filing bankruptcy or closure. These facilities represent 15% of the total hospital beds in the region.
“Those suffering the most from this untenable situation are families who live in inner-cities, rural communities and other low-income areas,” says Dr. Steve Maron, President of Valley Emergency Physicians Medical Group. “As a direct result of a broken system, these patients must travel farther to find an emergency room, have longer waits once they get there, and receive the least access to much needed on-call specialists. Let me be clear. If there is no change in the system and these trends continue, there will be fewer emergency doctors available to care for a growing population. Everyone will feel the effects.”
Emergency room physicians subsidized California with more than $100 million in services provided to Medi-Cal patients in 2007 alone. Over the past decade the cost of providing emergency room treatment has nearly doubled while the patient load has increased by more than 28%. Yet, during this period, Medi-Cal reimbursements have remained largely stagnant.
“In simplest terms, The State has shifted the cost of providing emergency room care from the state to the physicians. This unfair, unjust and illegal action has placed our emergency room system into a state of crisis,” explains Boucher. “Physicians, required by state and federal law to provide emergency room services, receive reimbursement from the state at rates that are significantly below the cost of care. Emergency room doctors are the only doctors who are required by the state to lose money.”
The suit, filed in Superior Court in Los Angeles today alleges 1) Violations of the Equal Protection Clause; 2) Unlawful Taking of Property for Public Use; 3) Violations of both the Federal Social Security Act and California’s Medicaid Act; and 4) Unjust enrichment.
“The state’s record high unemployment rates, reduced rates of insured patients, and the challenges of the overall economy are only exacerbating this situation,” according to Dr. Maron. “With access to primary care shrinking, Medi-Cal patients increasingly must turn to emergency departments for care, further straining the system.”
The suit, filed by Kiesel Boucher Larson, Beverly Hills; Liner Yankelevitz Sunshine & Regenstreif, Los Angeles; Coughlin Stoia Geller Rudman & Robbins, San Diego; and Alleguez & Selesnick, Encino; was filed on behalf of Centinela Freeman Emergency Medical Associates; Valley Presbyterian Emergency Medical Associates; Valley Emergency Medical Associates; Sutter Emergency Medical Associates; Valley Emergency Physicians Medical Group; and others similarly situated.
Categories: Financial Services |
