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Advisory opinion regarding Dr. Christopher Rich's participation in matters before the Louisiana Workforce Commission's Office of Workers' Compensation Administration (OWAC) involving certain companies, at a time when he serves as the Medical Director for OWAC and works for companies with patients paid by workers' compensation insurers. |
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Dr. Christopher Rich is the Medical Director for the Louisiana Workforce Commission's Office of Workers' Compensation Administration (OWAC). Dr. Rich's job duties include approving or disapproving medical treatments and procedures in cases appealed to him, which decisions will affect the liability of the responsible workers' compensation insurer. The "medical guidelines" pursuant to which Dr. Rich makes decisions regarding cases appealed to him went into effect on July 13, 2011.
Prior to January 1, 2011, Dr. Rich served as the chief executive officer/manager of Mid State Orthopedic & Sports Medicine Center. As of January 1, 2011, Dr. Rich began serving in the capacity of Office Manager for Mid State in the transition of terminating all of his services to and divesting his interest in Mid State. It was Dr. Rich's intention that by May 1, 2011, he would no longer be performing any services on behalf of Mid State as an Officer Manager or in any other capacity. However, because of his need to maintain health insurance, Dr. Rich is still providing services to Mid-State on an as needed basis part-time. His duties include handling personnel matters, arranging doctors' call schedules and accounting for doctors' compensation. Dr. Rich does not have an ownership interest in Mid State, nor is he a director or partner.
Some of Mid State's patients' bills are paid to Mid State by workers' compensation insurers. In addition, Mid State is a plaintiff in a lawsuit against insurers and employers that seek payment for medical services provided by Mid State that are covered by workers' compensation. It is anticipated that the majority of this lawsuit will be settled shortly; however, approximately $600 of claims may not be settled.
Since the opinion was issued in 2011-224, Dr. Rich has divested all interest in Central Louisiana Surgical Hospital.
In June 2011, Dr. Rich's contract was amended to remove any and all responsibility as to Central Louisiana Surgical Hospital and Mid-State from his job duties and responsibilities. Those appeal cases are given to another doctor.
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In Docket No. 2011-224, the Board addressed this matter involving Dr. Christopher Rich and his association with Central Louisiana Surgical Hospital and Mid-State Orthopedic & Sports Medicine Center.
Docket No. 2011-224 advised that since Dr. Rich would not be making any decisions regarding appeals as Medical Director until May 1, 2011; and on or before May 1, 2011, Dr. Rich will no longer be associated as office manager or in any other capacity with Mid State, there is no prohibition to Dr. Rich serving as Medical Director reviewing appeals involving Mid State.
It further advised, that as long as Dr. Rich maintains his ownership interest in Central Louisiana Surgical Hospital, Dr. Rich would be prohibited from participating in any matter as Medical Director for OWAC involving this entity. In order to avoid a potential violation of Section 1112B(3) of the Code, Dr. Rich would need to submit a disqualification plan in accordance with Section 1112C and the Rules for the Board of Ethics. The legal division for OWAC proposed that the Director of OWAC appoint another individual to handle any matters involving Louisiana Central Surgical Hospital.
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Section 1111C(2)(d) of the Code prohibits a public servant from receiving any thing of economic value for services rendered to or for any person during his public service unless such services are neither performed for nor compensated by any person that has or is seeking to have a contractual, business or financial relationship with the public servant's agency; that conduct operations or activities that are regulated by the public employees' agency; or that has a substantial economic interest which may be substantially affected by the performance or nonperformance of the public employees official duty.
Section 1112B(3) states that no public servant shall participate in a transaction involving the governmental entity in which, to his actual knowledge, any person of which he is an officer, director, trustee, partner, or employee, has a substantial economic interest.
Section 1112C of the Code allows a disqualification plan to be developed in accordance with rules adopted by the Board to remove a public servant from participating in transactions that would otherwise present violations of Section 1112 of the Code.
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Adopt proposed advisory opinion.
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| Assigned Attorney: |
Tracy Barker |
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