SAINT BARNABAS MEDICAL CENTER A/S/O SEAN HOLEY VS. Â MERCURY INDEMNITY COMPANY OF AMERICA(L-6590-15, ESSEX COUNTY AND STATEWIDE)
A-2311-15T2
| N.J. Super. Ct. App. Div. | Jul 31, 2017Background
- On June 24, 2013 Sean Holey (insured) received outpatient burn/graft treatment at Saint Barnabas Medical Center (SBMC) and assigned PIP benefits to SBMC.
- SBMC billed $10,404 for surgical and ancillary services; Mercury Indemnity Co. of America (MICA) paid $3,234.31 under the HOSF fee schedule and SBMC's PPO contract, denying ~11 ancillary line items as integral to the surgical procedure.
- SBMC asserted the appropriate HOSF-allowed maximum was $6,681.02 and sought an additional $3,446.71 from MICA.
- The dispute went to a Dispute Resolution Professional (DRP) and then to a three-member DRP Panel; both found MICA properly denied separate reimbursement for ancillary items and affirmed payment based on HOSF rules.
- SBMC sought judicial review under APDRA (N.J.S.A. 2A:23A-1 et seq.) to vacate the award, arguing DRP erred in law and the matter raised issues of general public importance.
- The Law Division (Judge Gardner) affirmed the DRP award; SBMC appealed to the Appellate Division which dismissed the appeal for lack of appellate jurisdiction under APDRA.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether appellate review is available of a Law Division order confirming an APDRA award | SBMC: appellate review is available because hospital billing practices and interpretation of N.J.A.C. 11:3-29.5 raise issues of general public importance | MICA: APDRA limits review; only rare supervisory jurisdiction exceptions permit appellate review | Court: APDRA bars further appeal except in rare supervisory circumstances; no such circumstances here, so appeal dismissed |
| Whether the DRP/DRP Panel erroneously applied law in disallowing ancillary charges as integral to the surgical code | SBMC: DRP misapplied HOSF rules and undervalued surgical code 15100; ancillary items should be separately reimbursable | MICA: DRP correctly applied N.J.A.C. 11:3-29.5 and HOSF fee schedule; ancillary items are intrinsic and not separately billable | Court: Did not reach merits; accepted that trial judge acted within APDRA bounds and deferred to DRP factfinding; no appellate review granted |
Key Cases Cited
- Mt. Hope Dev. Assocs. v. Mt. Hope Waterpower Project, L.P., 154 N.J. 141 (discusses APDRA purpose and limits on review)
- Morel v. State Farm Ins. Co., 396 N.J. Super. 472 (general rule: no appeal from trial court orders in APDRA matters)
- Riverside Chiropractic Grp. v. Mercury Ins. Co., 404 N.J. Super. 228 (appellate supervisory review is limited to rare, nondelegable matters)
- Fort Lee Surgery Ctr., Inc. v. Proformance Ins. Co., 412 N.J. Super. 99 (declining appellate jurisdiction where trial judge acted within APDRA bounds)
- Selective Ins. Co. of Am. v. Rothman, 414 N.J. Super. 331 (exception: appellate review where DRP failed to enforce clear statutory mandate involving significant public concern)
- Allstate Ins. Co. v. Sabato, 380 N.J. Super. 463 (appellate review permitted over attorney-fee issues as supervisory function)
- Faherty v. Faherty, 97 N.J. 99 (example of appellate review over arbitrator in special circumstances)
- Kimba Med. Supply v. Allstate Ins. Co., 431 N.J. Super. 463 (invoking exception to clarify APDRA interpretation and trial court remand powers)
- N.J. Citizens Underwriting Reciprocal Exch. v. Kieran Collins, D.C., LLC, 399 N.J. Super. 40 (dismissing appeal where trial court stayed within limited APDRA review)
