219 Conn. 581 | Conn. | 1991
We are asked to decide whether the “act establishing a prospective payment system for hospitals,” Public Acts 1984, No. 84-315 (the DRG Act), affected an employer’s workers’ compensation liability for hospital bills incurred by an injured employee between 1984 and 1989, after which period the act was repealed. We conclude that an employer was required to pay the diagnosis related group or “DRG” charges for hospital services billed during that five-year period.
The parties stipulated to the pertinent facts. The named plaintiff, Craig Burge (the employee), was employed by the named defendant, the town of Stoning-ton (the employer). On August 21, 1987, he suffered an injury compensable under the Workers’ Compensation Act, General Statutes § 31-275 et seq., and was hospitalized between September 2 and September 7, 1988. During his hospitalization, Lawrence and Memorial Hospital (the hospital) provided him with rea
The CRD rejected the employer’s contentions on the same basis expounded fully in an earlier CRD decision, Tannery. Walgren Tree Experts, No. 748 CRD-8-88-7 (January 17,1990). In Tanner, the CRD concluded that after the legislature in 1973 created the commission on hospitals and health care (hospital commission) with rate-setting and budget review powers, the “actual cost” language in § 31-294 “ceased to be relevant.” It found that since that date, the workers’ compensation commissioners, when determining employer liability for hospital confinement and treatment, had relied on the uniform rates set by the hospital commission, and it concluded that the DRG rates set by the commission after passage of the DRG Act were similarly applicable. Finally, the CRD held that the legislature had resolved any remaining ambiguity when it enacted No. 88-357 of the 1988 Public Acts, which explicitly amended both § 19a-165f and § 31-294 by requiring
I
The Workers’ Compensation Act, including § 31-294, has been a part of our law since 1913. In the ensuing seventy-eight years, the workers’ compensation commissioners have made numerous awards, including orders to employers to pay hospital charges. It is appropriate for us to consider this long history of practical application in our analysis of the statute’s meaning and scope.
In September, 1988, when the employee was injured, General Statutes § 31-294 provided in pertinent part: “The pecuniary liability of the employer for the medical and surgical service herein required shall be limited to such charges as prevail in the same community or similar communities for similar treatment of injured persons of a like standard of living when such treatment is paid for by the injured person; but the liability of the employer for hospital service shall be the amount it actually costs the hospital to render the service, such amount to be determined by the commissioner . . . (Emphasis added.)
The italicized language was added to the statute in 1921; Public Acts 1921, c. 306, § 3; apparently in response to the deep division between compensation commissioners regarding the appropriate level of hospital fees for which employers would be liable. Early workers’ compensation commission decisions indicate that most members of the industrial working class at the beginning of this century lacked the funds to pay their hospital costs. As a result, hospitals commonly
In those early days, the compensation commissioners debated whether hospitals could receive more than their below-cost “general ward” fees for hospital care provided to members of the industrial working class who would, without workers’ compensation, undoubtedly have relied on the “general” or “charity” wards for hospital care. Compare Schillinger v. Yale Brewing Co., supra, and Johnson v. Spring Glen Farm, Inc., supra. Not infrequently, a hospital would admit injured workers to the “private ward” and be paid only the fee for “general ward” treatment. See, e.g., Schillinger v. Yale Brewing Co., supra; Kelly v. Whitaker, supra; Malone v. H. R. Douglas, Inc., supra. This practice would result in a substantial loss to the hospital. Indeed, the Connecticut Medical Society in 1914 submitted to the workers’ compensation commissioners a recommendation that the legislature authorize private ward fees with additional charges for doctors’ fees, which the commissioners included, without comment, in their annual report to the governor and general assembly. 1914 Conn. Public Documents vol. 1, pt. 2, doc. 15, p. 17. Various commissioners in their decisions also invited legislative action on this issue. See Spencer v. New Haven Rendering Co., supra, I-233; Schillinger v. Yale Brewing Co., supra, I-187.
This history indicates that the 1921 amendment to the Workers’ Compensation Act, limiting hospital charges to the actual costs of the services provided, was probably added in order to prevent hospitals from being imdercompensated. This is in contrast to the other language in § 31-294 limiting employer liability for medi
The CRD’s opinion in Tanner declared that since 1921, the commissioners met yearly to set the actual costs that a hospital might charge for services.
The commissioners’ practical application of the statute over the last seventy years provides a useful indication of its meaning. See Board of Education v. State Board of Labor Relations, 217 Conn. 110, 120, 584 A.2d 1172 (1991). The compensation commissioners had
“We seek the intent of the legislature ‘not in what it meant to say, but in what it did say.’ Daily v. New Britain Machine Co., 200 Conn. 562, 571, 512 A.2d 893 (1986).” Sanzone v. Board of Police Commissioners, 219 Conn. 179, 187, 592 A.2d 912 (1991). Whatever led to its enactment, the words of § 31-294 limit the employer’s liability to the “amount it actually costs the hospital to render the service.” The compensation commissioners could not assume that the hospital commission would consider the actual costs to the hospital as the only criterion for setting rates. Indeed, No. 73-117 of the 1973 Public Acts permitted the hospital commission to consider, in addition to “necessary expenses” of the hospital, the hospital’s effectiveness, the quality of care, and the community’s need for its services, as well as “any other factors [that] the commission deems relevant.”
II
In September, 1988, when the employee’s hospital costs were incurred, the DRG statute provided, in pertinent part: “(a) For the rate year commencing in 1987, and for subsequent rate years, hospitals shall charge according to a fee schedule based on a standard fixed charge per case for all inpatient cases except cases in exempt units or cases classified as outliers .... Suck fee schedule shall be used for all payers except for Medicare and for medical assistance provided pursuant to chapters 302 and 308.”
“Our task is to find the expressed intent of the legislature, ‘that is, the intention of the legislative body “as found from the words employed to make it manifest.” ’ ” Sanzone v. Board of Police Commissioners, supra, 186. “To determine the collectively expressed legislative intent, we look first to the language of the statute itself.” Id., 187. The statutory language, “all payers,” which was added in 1987, demonstrates that the legislature intended no exemption from hospital commission rates for workers’ compensation cases.
A review of the legislative history, while not required, confirms our reading of the statute. “Legislative his
The legislative history unquestionably indicates that §§ 3 and 19 of No. 88-357 of the 1988 Public Acts, which became effective on October 1,1988, after the employee was injured and incurred hospital costs, were intended to clarify the ambiguity created when the legislature enacted General Statutes § 19a-165f (a) without explicitly repealing the conflicting provisions of § 31-294.
It is rare to find such plentiful evidence of the legislature’s intent to clarify an earlier statute.
Having established the meaning of § 19a-165f (a), we return to § 31-294. Section 19a-165f (a) of the DRG Act, as a subsequent enactment, must control over the conflicting terms of § 31-294, as modified by Public Acts 1973, No. 73-117. See Plourde v. Liburdi, 207 Conn. 412, 417, 540 A.2d 1054 (1988); Keogh v. Bridgeport, 187 Conn. 53, 65, 444 A.2d 225 (1982). We therefore
The judgment is affirmed.
In this opinion the other justices concurred.
General Statutes (Rev. to 1987) § 19a-165f, as amended by Public Acts 1987, No. 87-122, No. 87-443, § 5, and No. 87-510, § 3, provided, in pertinent part: “(a) For the rate year commencing in 1987, and for subsequent rate years, hospitals shall charge according to a fee schedule based on a standard fixed charge per case for all inpatient cases except cases in exempt units or cases classified as outliers and the patient shall be liable for payment on the basis of such schedule. A hospital may not charge for inpatient cases not classified as outliers on other than a fixed charge per case unless otherwise authorized under sections 19a-165 to 19a-165g, inclusive. Reimbursement on behalf of such inpatient cases shall be based on the fixed charge per case. Such fee schedule shall be used for all payers except for Medicare and for medical assistance provided pursuant to chapters 302 and 308 .... The commission on hospitals and health care shall adopt regulations . . . which define a self-pay patient and shall establish an appeals process for self-pay patients . . . .”
The bill provided the following statement of charges: “MED/SURG/GYN-S/P $1,405.00
ANESTHESIA 808.56
LABORATORY 110.46
OPERATING ROOM 1,080.67
RECOVERY ROOM 196.07
PHARMACY 36.55
MED/SURG/CENTRAL 74.57
INTRAVENOUS THERAPY 87.86
TOTAL CHARGES 3,799.74
CT ALL PAYOR SYSTEM DRG CHARGE 7,207.55”
Thus, the detailed charges totaled $3799.74, whereas the DRG charge was $7207.55, a difference of $3407.81.
General Statutes (Rev. to 1987) § 31-294 provided, in pertinent part: “The pecuniary liability of the employer for the medical and surgical service herein required shall be limited to such charges as prevail in the same community or similar communities for similar treatment of injured persons of a like standard of living when such treatment is paid for by the injured person; but the liability of the employer for hospital service shall be the amount it actually costs the hospital to render the service, such amount to be determined by the commissioner, except in the case of state humane institutions, in which case the liability of the employer shall be the per capita cost as determined by the comptroller under the provisions of section 17-295.”
Prior to the 1921 amendment, General Statutes (Rev. to 1918) § 5347 provided: “The pecuniary liability of the employer for the medical and surgical service herein required shall be limited to such charges as prevail in the same community or similar communities for similar treatment of injured persons of a like standard of living when such treatment is paid for by the injured person.” This provision was retained after the 1921 amendment, which added the language establishing actual cost as the standard for hospital services.
Commission reports indicate that in later years the commissioners met with hospital and insurance officials to try to reach agreement on uniform statewide hospital rates. See Reports of the Board of Compensation Commissioners, No. 18 (1946), p. 9; No. 17 (1944), pp. 8-9; No. 16 (1942), p. 8; No. 15 (1940), p. 9; No. 14 (1938), p. 10.
In 1973, the precursor to General Statutes § 19a-153 (a), as codified at General Statutes (Rev. to 1975) § 19-73k, provided: “considerations relative to rate-increase approval. In its deliberations under any of sections 19-73Í to 19-73o, inclusive, the commission may take into consideration the necessary expenses of the institution or facility concerned, the effectiveness of its delivery of health care services, the quality of available health care, the duplication of service by institutions and facilities in the area served, the community or regional need for any particular function or service, and any other factors which the commission deems relevant.”
In the same act that repealed General Statutes § 19a-165f, the DRG Act; see Public Acts 1989, No. 89-371; the legislature also amended § 19a-153 (a), which now provides as follows: “[General Statutes (Rev. to 1991)] Sec. 19a-153. (Formerly Sec. 19-73k). “considerations in commission deliberations; written findings, availability of information, use of charitable gifts, (a) In any of its deliberations involving a proposal, request or submission regarding rates or services by a health care facility or institution, the commission shall take into consideration and make written findings concerning each of the following principles and guidelines: The
Indeed, thirty years earlier the compensation commissioners had implored the legislature to “remove this burden” of setting hospital rates from the commissioners. Reports of the Board of Compensation Commissioners, No. 16 (1942) p. 8.
General Statutes (Rev. to 1987) § 19a-165 (h), as amended by Public Acts 1987, No. 87-448, §§ 2, 17, defines “Outliers” as “(1) day outliers, which shall include all cases with a length of hospital stay which exceeds three times the average length of stay as determined by the commission; (2) charge
General Statutes (Rev. to 1987) § 19a-165f (a) categorizes "psychiatric units and rehabilitation units of hospitals” as “exempt units” and authorizes the hospital commission to classify certain services as exempt. The parties have stipulated that the employee’s case is not an “outlier” and that the services the hospital provided are not “exempt” in themselves or by virtue of being provided by an “exempt” unit.
We note that in 1984, the DRG Act, as codified at General Statutes (Rev. to 1985) § 19a-165f (a), provided: “Separate fee schedules shall be used for the following payer categories: Medicare, medical assistance provided pursuant to chapters 302 and 308, other third party payers.' ’ (Emphasis added.) The legislature removed this language in 1987. Public Acts 1987, Nos. 87-443, § 5, and 87-510, § 3. The statute never defined or otherwise referred to “other third party payers.” This term would presumably include both private medical insurers and workers’ compensation insurers, as well as self-insured employers. Thus, the legislature in 1984 continued to make no distinction between workers’ compensation payers and other insurers.
“[Public Acts 1988, No. 88-857] Sec. 3. Subsection (a) of section 19a-165f of the general statutes, as amended by public act 87-122, section 5 of public act 87-443 and section 3 of public act 87-510 are repealed and the following is substituted in lieu thereof:
“(a) For the rate year commencing in 1987, and for subsequent rate years, hospitals shall charge according to a fee schedule based on a standard fixed charge per case for all inpatient cases except cases in exempt units or cases classified as outliers, [and the] THE patient shall be liable for payment on the basis of such schedule, EXCEPT THAT IN WORKERS’ COMPENSATION CASES ALL CHARGES FOR HOSPITAL SERVICES RESULTING FROM EMPLOYMENT RELATED INJURIES OR DISEASES SHALL BE SOLELY THE RESPONSIBILITY OF THE EMPLOYER OR CARRIER, AND NO CLAIM SHALL BE MADE AGAINST THE INJURED EMPLOYEE FOR ALL OR PART OF A CHARGE. A hospital may not charge for inpatient cases not classified as outliers on other than a fixed charge per case unless otherwise authorized under sections 19a-165 to 19a-165q, inclusive, AS AMENDED BY PUBLIC ACTS 87-443 AND 87-510. Reimbursement on behalf of such inpatient cases shall be based on the fixed charge per case. Such fee schedule shall be used for all payers except for Medicare and for medical assistance provided pursuant to chapters 302 and 308 until such time as Medicare and medical assistance provided pursuant to chapters 302 and 308 pays on the
“Sec. 19. Section 31-294 of the general statutes, as amended by public act 87-160, is repealed and the following is substituted in lieu thereof . . .
“The pecuniary liability of the employer for the medical and surgical service herein required shall be limited to such charges as prevail in the same community or similar communities for similar treatment of injured persons of a like standard of living when such treatment is paid for by the injured person; but the liability of the employer for hospital service shall be the amount it actually costs the hospital to render the service, such amount to be determined by the commissioner except (1) IN CASES FOR WHICH A STANDARD FIXED CHARGE PER CASE HAS BEEN ESTABLISHED PURSUANT TO SUBSECTION (a) OF SECTION 19a-165f, AS AMENDED BY PUBLIC ACT 87-122, SECTION 5 OF PUBLIC ACT 87-443, SECTION 3 OF PUBLIC ACT 87-510 AND SECTION 3 OF THIS ACT, LIABILITY SHALL BE THE AMOUNT CHARGED BY THE HOSPITAL USING A FEE SCHEDULE BASED ON SUCH FIXED CHARGE PER CASE AND (2) in the case of state humane institutions, in which case the liability of the employer shall be the per capita cost as determined by the comptroller under the provisions of section 17-295. ALL DISPUTES CONCERNING LIABILITY FOR HOSPITAL SERVICES IN WORKERS’ COMPENSATION CASES SHALL BE SETTLED BY THE WORKERS’ COMPENSATION COMMISSIONER IN ACCORDANCE WITH THIS CHAPTER.”
The legislative history also indicates that the legislature intended to indicate formal approval of the commission’s regulation prohibiting hospitals from seeking any payment from injured workers. Regs., Conn. State Agencies § 31-279-9 (e). See testimony of John Arcudi, Conn. Joint Standing Committee Hearings, Public Health, 1988 Sess., p. 165.
The employer attempts to argue that the legislature cannot have been “clarifying” the term “actual cost” contained in General Statutes § 31-294, because that language was added in 1921. We need not consider whether the legislature has the power to make dispositive declarations concerning the intentions expressed by long-dead legislators, because § 3 of No. 88-357 of the 1988 Public Acts specifically clarified General Statutes § 19arl65f(a), which was enacted in 1984, only a few terms earlier.
Now that the DRG Act has been repealed, General Statutes § 31-294, implicitly modified by No. 73-117 of the 1973 Public Acts, returns to its pre-DRG meaning.