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Oliver v. MAGNOLIA CLINIC
85 So. 3d 39
La.
2012
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Background

  • Coupled writs challenge the MMA cap La.R.S. 40:1299.42(B) as applied to nurse practitioners in a pediatric malpractice case.
  • Taylor Oliver, treated solely by Nurse Duhon at Magnolia Clinic, later diagnosed with neuroblastoma causing severe injuries.
  • Jury awarded Olivers approximately $10 million; trial court reduced to comply with the cap and ordered PCF to cover certain past medical expenses.
  • Court of Appeal initially reinstated full jury award, with divisions on whether nurse practitioners fall within MMA coverage.
  • Louisiana Supreme Court granted review to resolve whether the cap applies to nurse practitioners and related MMA provisions.
  • Court held the cap is constitutional as applied to all qualified health care providers, including nurse practitioners; affirmed other MMA-related rulings and reinstated trial court judgment.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Is La.R.S. 40:1299.42(B) constitutional as applied to nurse practitioners? Oliver argues cap discriminates based on physical condition; nurse practitioners not covered. PCF/State contends cap serves legitimate interest and applies to all MMA providers, including nurse practitioners. Cap constitutional as applied to nurse practitioners.
Does the MMA cap apply to past medical expenses and related benefits for a patient in need of future care? All medical costs, past and future, are within future medical care; PCF overextended limits by excluding certain costs. Future medicals limited by cap and structured by MMA provisions; lien-based payments are controlled by statute. MMA intends to compensate all medical expenses; trial court properly included past medicals and related benefits.
Is judicial interest payable on past medical expenses awarded to plaintiffs when Medicaid paid those expenses? Interest attaches to the judgment; DHH may have privilege, but PCF bears liability for past medicals. DHH right to recover Medicaid payments via privilege; PCF should not bear discretionary interest. Judicial interest awarded to Olivers; PCF not required to pay DHH under record; interest valid on past medicals.

Key Cases Cited

  • Butler v. Flint Goodrich Hospital of Dillard University, 607 So.2d 517 (La. 1992) (upheld cap constitutional for all qualified providers)
  • Sibley v. Board of Supervisors of Louisiana State University, 477 So.2d 1094 (La. 1985) (rational basis standard for discrimination in cap cases)
  • Kelty v. Brumfield, 633 So.2d 1210 (La. 1994) (all past/present/future medical expenses within MMA scheme)
  • Everett v. Goldman, 359 So.2d 1256 (La. 1978) (malpractice damages not a fundamental right; rational basis review)
  • New Orleans Campaign for a Living Wage v. City of New Orleans, 825 So.2d 1098 (La. 2002) (constitutional review of legislative measures affecting remedies)
Read the full case

Case Details

Case Name: Oliver v. MAGNOLIA CLINIC
Court Name: Supreme Court of Louisiana
Date Published: Mar 13, 2012
Citation: 85 So. 3d 39
Docket Number: 2011-C-2132, 2011-C-2139, 2011-C-2142
Court Abbreviation: La.