Despite the September 24, 2009 Order by Judge Mark Khan of the Van Nuys WCAB dismissing lien claims by Premier Medical Management and an extensive list of Premier Medical providers, some providers on the list have challenged the authority of Premier Medical Management to execute a lien dismissal on their behalf.

It should be noted that the Order provides that Premier Medical Management and the individual Premier executives who affixed their signatures specifically warranted that they had the authority to execute the lien dismissal on behalf of the provider list. Only seven providers out of the list of more than 120 business entities were excluded.

It is anticipated that a petition for reconsideration of the order of dismissal will be filed by multiple providers, many who have retained individual counsel.

What this means for you

Pursuant to labor code section 5910, the filing of a petition for reconsideration stays execution of the order for a period of only 10 days unless otherwise ordered by the appeals board. The appeals board has the jurisdiction to stay, suspend or postpone implementation of the order during the pendency of the petition for reconsideration.

This potentially creates a two track process:

Track one:

With respect to any medical provider who has filed a verified petition for reconsideration on or before October 19, 2009, and presents a defendant with a demand for resolution of a Premier provider lien, no action should be taken to resolve the lien until the WCAB has issued a final opinion on reconsideration. If the WCAB finds good cause and sets aside the order with respect to that particular provider, they would be free to pursue their lien claims on their own behalf as though the order never issued.

Track two:

As to any medical provider who has not filed a petition for reconsideration the order will be final and non-appealable. The lien claims are extinguished, and should not be negotiated.

If the WCAB collectively denies all petitions for reconsideration, the aggrieved parties would then have 45 days in which to pursue a petition for writ of review with California Court of Appeal. Some Premier providers on their own behalf may pursue the litigation to the appellate court while others may not. This potentially splits the list once again as between providers who have timely filed a writ, and those who have not.

GMK recommends that all defendants maintain a list of the Premier providers which is updated as to those individual entities whose lien claims may be revived, and the remaining entities whose lien claims have been extinguished. This list will change depending upon the number of petitions for reconsideration and/or petitions for writ of review which may be filed. The story is not over, and may not be for many months to come.

As always, if you have questions regarding the validity of a lien presented to you, you may contact our GMK attorneys for specific advice.

© Copyright 2009 by Goldman, Magdalin & Krikes, LLP. All rights reserved. Reprinted with permission.