State v. Campbell
438 P.3d 448
Or. Ct. App.2019Background
- Defendant stabbed the victim, who required emergency surgery and two weeks at OHSU; defendant convicted on multiple charges (attempted murder acquitted).
- State sought $46,403.04 restitution representing amounts CareOregon (Medicaid CCO) paid of $262,006.83 billed; evidence included claim forms and a CareOregon subrogation ledger and witness testimony about payment rates.
- CareOregon witness testified payments were made at Medicaid/contract rates ("much lower" than commercial) but did not review individual services for reasonableness.
- Trial court denied restitution, concluding the state failed to prove the medical charges were "reasonable" under ORS 137.103(2) and ORS 31.710, relying on State v. McClelland.
- State cross-appealed; appellate majority reversed on cross-appeal, holding insurer payments at or below market (Medicaid) rates can supply sufficient evidence of reasonableness for restitution and remanded.
- Defendant's direct appeal (jury instructions/merger) was affirmed without written discussion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether restitution for medical expenses requires additional proof beyond insurer payment to show "reasonable charges" under ORS 31.710/137.103 | Payments by a health insurer (CareOregon) at contracted/Medicaid rates are prima facie evidence of market-rate reasonableness; that evidence was sufficient here | Medical bills or insurer payment alone cannot establish reasonableness; need testimony (physician or billing expert) tying charges to necessity and customary rates (McClelland) | Reversed trial court: insurer payments at or below market (here Medicaid/contract) provide sufficient evidence to permit a factfinder to find charges "reasonable" for restitution purposes; remanded for entry of restitution to CareOregon |
| Whether the state needed to separately prove necessity of each treatment at the restitution hearing | Necessity may be proven by trial evidence; restitution need only show reasonable value (market rate) and necessity was not contested here | State must connect each expense to necessary treatment and rule out less costly alternatives | Held that reasonableness and necessity are distinct; necessity evidence existed in the trial record and need not be re-proved at restitution when trial presented it; the restitution denial based solely on lack of reasonableness evidence was error |
Key Cases Cited
- State v. McClelland, 278 Or. App. 138 (Or. Ct. App. 2016) (medical bill alone insufficient to prove reasonableness for restitution)
- White v. Jubitz Corp., 347 Or. 212 (Or. 2009) (amount paid is admissible and often important in establishing reasonable value of medical services)
- Ellington v. Garrow, 213 Or. App. 490 (Or. Ct. App. 2007) (physician testimony sufficient to permit inference that charges were reasonable)
- Valdin v. Holteen and Nordstrom, 199 Or. 134 (Or. 1953) (payment evidence must be connected to proof that charges and services were reasonable and performed)
- State v. Jordan, 249 Or. App. 93 (Or. Ct. App. 2012) (insurer lien ledger is more than a bill and may bear on reasonableness)
- State v. Ramos, 358 Or. 581 (Or. 2016) (restitution informed by civil-law concepts of economic damages)
- Lea v. Farmers Ins. Co., 194 Or. App. 557 (Or. Ct. App. 2004) (bill without further proof insufficient to establish reasonableness)
- Coblentz v. Jaloff, 115 Or. 656 (Or. 1925) (allegation of medical charges without proof of payment or reasonableness insufficient)
