HomeMy WebLinkAbout97-2288 civilLESLIE WENRICH, D.C., : IN THE COURT OF COMMON PLEAS OF
Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA
:
v. NO. 97-2288 CIVIL TERM
:
HIGHMARK, INC. d/b/a :
PENNSYLVANIA BLUE :
SHIELD, :
Defendant : CIVIL ACTION - LAW
IN RE: DEFENDANT'S PRELIMINARY OBJECTIONS
BEFORE HOFFER, P.J. AND HESS, J.
ORDER OF COURT
ANDNOW, (~¥~ '~ ,1998, Plaintiff's Complaint is
dismissed for failure to submit this dispute to the required alternative dispute
resolution process. Plaintiff is hereby required to submit his complaint to the
appropriate Review Committee.
By the Court,
~ p.j.
Spero T. Lappas, Esquire
205 State Street, P.O. Box 808
Harrisburg, PA 17108-0808
Bridget E. Montgomery, Esquire
Eckert, Seamans, Cherin & Mellot LLC
213 Market Street, P.O. Box 1248
Harrisburg, PA 17108-1248
LESLIE WENRICH, D.C., : IN THE COURT OF COMMON PLEAS OF
Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA
:
v. : NO. 97-2288 CIVIL TERM
:
HIGHMARK, INC. d/b/a :
PENNSYLVANIA BLUE :
SHIELD, :
Defendant : CIVIL ACTION - LAW
IN RE: DEFENDANT'S PRELIMINARY OBJECTIONS
BEFORE HOFFER, P.J. AND HESS, J.
OPINION
HOFFER, P.J.:
This opinion concerns Defendant's preliminary objections to Plaintiff's
complaint. Leslie Wenrich, D.C. ("Plaintiff") filed suit against Highmark, Inc. ("PBS"
or "Defendant") for defamation. Plaintiff is a doctor of chiropractic who is a
participating provider with PBS. Wenrich claims he sent bills to PBS for payment
in accordance with the PBS provider agreement. Wenrich alleges that PBS
refused to pay these bills and sent notices to the applicable patients stating that
the reason for non-payment was that Wenrich's equipment was substandard.
Defendant claims that Plaintiff failed to provide the necessary information that
would have allowed PBS to determine the quality of Plaintiff's equipment. PBS has
filed a preliminary objection requesting that this case be dismissed and sent to
97-2288 CIVIL TERM
alternative dispute resolution as required under the Regulations for Participating
Providers.~ We now find that Plaintiff is required to submit his complaint to the
appropriate alternative dispute resolution process before pursuing a remedy in the
court system.
DISCUSSION
Defendant is a Pennsylvania non-profit professional health services
corporation which was organized and is currently operating pursuant to the
Pennsylvania Health Services Plan Corporation Act. This Act states that "Ia]Il
matters, disputes or controversies relating to the professional health services
rendered by the health service doctors...shall be considered and determined
only by health service doctors as selected in a manner prescribed in the by-laws
of the professional health service corporation." 40 Pa. C.S.A. Section 6324(c)
(1995).
The By-Laws of the Medical Service Association of Pennsylvania state that
"Ia]Il matters, disputes or controversies arising out of the relationship between the
Corporation and the professional health care providers...shall be considered and
~ Defendant's second preliminary objection requests that, in the alternative
of sending this complaint to alternative dispute resolution, this Court dismiss
Plaintiff's Complaint for failure to state a claim upon which relief can be granted.
Because of the action this Court is taking today, there is no need to decide
Defendant's alternative request.
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determined by one of two Review Committees." Article X, Sec. 1 (1995).
PBS' Regulations for Patient Providers further explain how these
controversies shall be decided. The regulations state that "all matters, disputes or
controversies relating to the services performed by Participating Providers...shall
be considered, acted upon, disposed of and determined only by providers in a
manner provided by Article X of the By-Laws of Blue Shield. Regulations for
Participating Providers, General Regulations B(20). The Review Committee
Guidelines go on to say that "matters referred to the Review Committee generally
concern disputes with respect to overutilization and/or misutilization of services,
quality of care, service benefits and usual charge problems." PBS Review
Committee Guidelines, Appendix B.
In an opinion somewhat similar to the one at bar, this Court was asked to
determine whether a claim brought against PBS for interpretation of a providing
participant agreement between a health services provider and PBS was required
to initially go through an alternative dispute resolution process. The Court held that
40 Pa. C.S.A. Section 6324 of the Professional Health Services Plan Corporation
Act "gives PBS power to elect an administrative panel to hear and resolve disputes
concerning the professional health services rendered by its participating
physicians." RRS Imaging Assoc v. Medical Service Assn., 42 D & C 3d 42, 43
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(1985).
Additionally, the Pennsylvania Supreme Court has already recognized that
various statutes now encourage arbitration and alternative dispute resolution is
favored by the courts. Borough of Ambridge Water Authority v. Columbia, 458 Pa.
549, 328 A.2d 498, 500 (1974).
Based upon the above requirements, this Court finds that the Plaintiff is
required under his agreement with PBS to first submit his complaint to alternative
dispute resolution rather than initially filing it with the court system. The
Pennsylvania Health Services Plan Corporation Act clearly states that PBS has the
right to prescribe the manner used to settle disputes and controversies. PBS, in
its by-laws, has determined that all matters arising out of the relationship between
participating providers and PBS shall be disposed of via one of two Review
Committees. Based upon this reading, any dispute which falls under this
requirement must be determined by the Review Committee before it can be
removed to the court system.
The case at bar meets the requirement of a matter which arises out of the
relationship between a participating provider and PBS. Wenrich is a participating
provider who is required under the PBS agreement to forward certain information
to the Defendant in order for PBS to determine the quality of Wenrich's equipment.
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In turn, Wenrich can submit his bills to PBS which then pays or denies the claim
and sends notices to the participating patients whom Wenrich has treated. Were
Wenrich not a participating provider for PBS, Defendant would not have had any
reason to send the supposedly defamatory letters to any of Wenrich's patients.
Therefore, this case arose from the relationship between Wenrich and PBS.
Furthermore, the PBS guidelines go on to say that the matters referred to
by the Review Committee generally concern disputes with respect to overutilization,
quality of care, service benefits and usual charge problems. Plaintiff alleges that
his claim does not fall within the list of disputes. Plaintiff fails to see that this list
is just a generality produced by PBS to show what disputes are commonly dealt
with by the Review Committee. However, there is no limitation placed upon this
list, nor does PBS specifically list any disputes which are not covered under the
Review Committee's jurisdiction.
Plaintiff characterizes his claim as one of defamation in a possible attempt
to avoid alternative dispute resolution. This Court finds that the dispute between
Plaintiff and Defendant is actually one based upon the requirements of Plaintiff as
a PBS provider. Although Plaintiff couches his complaint in terms of defamation,
this Court will not allow mere linguistics to prevent this case from going to
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alternative dispute resolution? Additionally, this case could be viewed as dispute
over quality of care. Plaintiff's claim of defamation is based upon the fact that PBS
found Plaintiff's equipment to be substandard. This claim obviously goes to the
quality of care being offered by Plaintiff in his role as a participating provider in the
PBS program. For these reasons, Plaintiff is required to submit his complaint to
the appropriate PBS Review Committee.
2 Even if this Court were to find that Plaintiff's case is based upon
defamation, there is still authority to show that defamation can be arbitrated. The
Pennsylvania Superior Court has said that "although the intentional tort of
defamation is not normally arbitrated," if the agreement is broad enough to
encompass defamation, such as allowing arbitration for any dispute arising out of
the relationship between the parties, then defamation cases may be arbitrated.
Waddell v. Shriber,, 357 A.2d 571 (Pa. Super. 1976).