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Another Jindal ‘reform’ fails legal smell test as Baton Rouge Judge strikes down changes to Workers Compensation laws

April 4, 2017 by tomaswell

Bobby Jindal and former Director of the Louisiana Office of Workers Compensation (OWC) Wes Hataway are gone but a court decision late last month could represent a legal smack down of the way workers’ compensation claims have been handled since July 13, 2011, Jindal’s third year in the governor’s office.

The ruling by 19th Judicial District Judge Don Johnson takes direct aim at a law pushed through the Louisiana Legislature and which set up new medical treatment guidelines for injured workers which plaintiffs said violated the due process clauses of the state and federal constitutions.

In his WRITTEN REASONS FOR JUDGMENT, Judge Johnson struck down provisions which:

  • Stipulated that when a carrier/self-insured employer fails to return LWC forms within the five business days it is deemed to have denied such request for authorization;
  • Provided an automatic “tacit denial” of medical treatment;
  • Allowed OWC to enforce variances from medical treatment guidelines;
  • Denied treatment not covered by medical treatment guidelines;
  • Allowed the OWC a workers compensation carrier to arbitrarily submit—and the OWC medical director to accept—any information it desires without notifying the injured worker of the “evidence.”

The suit was brought against the Louisiana Workforce Commission (LWC) in 2013 by attorney Janice Hebert Barber and several physicians and injured workers who were denied benefits under the new law. Baton Rouge attorney J. Arthur Smith III represented each of the plaintiffs. Also named as defendants were LWC Secretary Curt Eysink, Hataway, and former OWC Medical Director Dr. Christopher Rich.

Barber said the regulations also discriminate against injured workers in that:

  • Medical benefits were denied to injured workers because their physicians could not return calls from Rich’s staff as quickly as they liked;
  • One request for medical treatment was denied because the injured worker’s attorney submitted too many pages of records to Rich;
  • Another request for treatment was denied because the case itself was 12 years old;
  • Numerous requests for treatment were denied because Rich claimed they were submitted by “bad doctors” who were “bad” only because they were too favorable to their patients, in Rich’s opinion;
  • Requests for medical procedures were denied on the basis of who owned the medical equipment which would be utilized for the procedure;
  • As of December 2012, Medical Director Rich had approved only 14 percent of all requests for medical treatment of injured workers in cases where compensability had already been determined;
  • Rich had denied requests for medical treatment in cases in which he never even spoke to the claimants;
  • Hataway repeatedly engaged in ex parte communications with attorneys and others representing workers compensation insurance carriers and self-insured employers;
  • Hataway and his staff repeatedly expressed the Jindal administration’s “positions” on issues to be litigated by workers compensation judges to the judges themselves.

Barber said in her lawsuit that the new regulations had “enriched workers’ compensation insurance carriers and has harmed injured workers in Louisiana.” She claimed that under the new regulations, the Louisiana Workers’ Compensation Corporation (LWCC), the state’s largest workers’ compensation carrier, more than doubled premium dividend payments to Louisiana employers than were paid the year before the new law went into effect.

When Jindal named his four nominees to the University Medical Center Management Corp. Board back in March of 2010, he not only was looking after some of his more generous campaign contributors, but he also placed one of them in a position of potential conflict of interest.

At the time of his appointment as medical director, Dr. Christopher Rich of Alexandria currently held three separate contracts with the state totaling more than $3.3 million and he had already run into ethical problems with one of those contracts.

Rich also was named by Jindal as one of four nominees for the proposed billion-dollar University Medical Center that was to serve as a replacement for the 70-year-old facility that was closed after its basement was flooded during Hurricane Katrina in 2005.

Like many of Jindal’s high-profile appointees, Rich, his wife Vickie and business partner Dr. Mark Dodson, also of Alexandria, combined to contribute $9,500 to Jindal’s campaigns in 2007, 2010 and 2011.

Rich had a $516,646 contract to serve as Medical Director of the Office of Workers’ Compensation (OWC) Administration that called on him to approve or disapprove medical treatments and procedures for the Office of Workers’ Compensation.

That contract is actually to Chrickie Investments, a company owned by him and his wife.

In 2009, the Louisiana Legislature passed a law which changed the process for determining whether or not medical treatment was “medically necessary.” If a workers’ comp insurance company denies a treatment request, the denial is referred to the OWC medical director, in this case, Rich.

Though the law was passed in 2009, problems with implementing the rules to enforce the new law delayed the actual enactment date of the law until July 13, 2011.

Rich testified before the House Labor Committee that he was “denying 80 percent” of all treatment requested.

At the same time he was contracted to be the sole determiner of all medical treatment for Louisiana’s injured workers, he and Dodson were partners in Louisiana Ortho Services which held a $2.3 million contract to provide orthopedic services for the state, specifically Huey P. Long Medical Center.

Huey P. Long Medical Center (HLMC) at the time was one of 10 state hospitals that made up the LSU Health Care System which is administered by the LSU Board of Supervisors which also oversees the University Medical Center Management Board on which Rich sits. HLMC was subsequently shut down by the Jindal administration.

Because he also owned an interest in Central Louisiana Surgical Hospital which also provided medical treatment to injured workers, the question of his eligibility to make decisions on medical treatment which could financially impact the hospital as well as Mid-State came before the Louisiana Board of Governmental Ethics on separate occasions.

In March 2011, the ethics board ruled that Rich was prohibited, in his capacity as Medical Director of the Office of Workers’ Compensation, from participation in any matter involving Central Louisiana Surgical Hospital.

In January 2012, however, a second opinion said there was no conflict since he had terminated his relationship with Mid-State—only six months since the state had awarded Louisiana Ortho, that $2.3 million contract. Though he no longer is affiliated with Mid-State, he remains a partner in Louisiana Ortho with Dodson who in turn remains as a partner with Mid-State. The timing and the connections, to say the least, are curious.

Rich and Dodson also were partners in a company called ACTIVEMED, Inc., which held a $523,000 contract to provide orthopedic medical services to Northwestern State University student athletes.

Activemed also provided secondary insurance, also known as a preferred provider network (PPN) for two Louisiana university college sports teams and athletes. Basically, the athletes’ primary health insurance is the first payor for sports-related injuries. Then, if the student treats with an Activemed provider and they are enrolled with Activemed, then Activemed picks up the tab for the remainder of the treatment.

This means that Drs. Rich and Dodson had direct control over which doctors Activemed refers injured students to and if those same doctors happen to treat any Louisiana workers’ compensation patients, there existed a potential conflict of interest for Rich.

Activemed’s internet web page contains no list of medical providers, nor is Activemed listed under the Louisiana Department of Insurance either as an insurance company, a third party administrator (TPA), or an adjusting company.

Posted in Contract, Contracts, Courts, Ethics, Governor's Office, Lawsuits, Legislature, Legislators, Office of Workers' Comp, Politicians | 9 Comments »

Retired State Trooper expelled from LSTA membership for asking questions is solicited by same LSTA for contribution

April 3, 2017 by tomaswell

The Louisiana State Troopers Association (LSTA) must really be hurting financially.

First, there was the flak about the illegal campaign contributions LSTA’s board decided to launder through the private bank account of its Executive Director David Young that brought unwanted attention to the association.

Then there was the persistent objections to that decision by several retired state troopers who are members of the association but, like the rest of the LSTA membership, were never consulted on the decision to involve the group in partisan politics.

Their objections became such an annoyance that four of the retirees, men who dedicated their entire working life to protecting the public and trying to make our highways safer, were voted out of the association. Just booted out. No thank-you, no going away party. Nothing except a letter saying they were no longer welcome as members of the brotherhood.

Eventually, the State Ethics Commission investigated the illegal contributions—illegal because state classified employees are forbidden from participating in partisan politics or for contributing to political campaigns—and levied a $5,000 fine against the association.

On the heels of that action the FBI served subpoenas on 18 members of the association, directing them to appear before a federal grand jury investigating association activities. That grand jury convenes on April 13.

As all this was going on, many State Troopers were victims of the floods that plagued Louisiana during 2016 and the LSTA generously pledged $1,000 to members who were adversely affected by the floods.

Included on its WEB PAGE is the following statement:

“We are committed to improved pay and benefits; to assure a better working environment; to provide support when needed; and to increase the quality of life for our members. We also strive to improve the public services provided by our members to our community.”

Somehow, though, the retiree members, those who likely needed help the most, were overlooked when those $1,000 checks went out. Several retirees have contacted LouisianaVoice to say they never received any help from the association.

Obviously, LSTA is short of funds. Why else would it, instead of helping out those retirees who were flooded (among them excommunicated member Leon “Bucky” Millet), reach out to them instead for contributions?

That’s right. Millet, a retiree who was booted out for protesting too much and who had his home flooded, recently received a solicitation letter from LSTA.

The letter which went out over LSTA President James O’Quinn’s signature, noted that the association uses contributions “to persuade government (apparently through campaign contributions) to provide better and safer conditions for our troopers. We use it to support community oriented programs that serve to enhance positive relationships between troopers and the communities they serve.”

The letter contained no mention of how contributions are also used for elaborate parties and to pay for travel all over the country for members to attend such work-related events as the Washington Mardi Gras.

“Because we’re grateful to those who are grateful for us, we like to recognize our donors with gifts. For our spring fundraising campaign, we have our much-requested official LSTA Field Cap. We also have our new 2017 window stickers, our wonderful spring vacation drawing and special recognition for our high-end donors.”

We’re pretty sure that a long-standing member who was expelled for asking legitimate questions would love to affix that sticker to his windshield and cruise on down the road wearing his official LSTA Field Cap.

Ending its solicitation on a personal note, the letter said, “Please consider a donation, Mr. Millet. We could use it.”

Yes. No doubt, the association may even use some of those contributions for legal fees.

Posted in Campaign Contributions, Civil Service, Ethics, Finances, State Police | 72 Comments »

Another obscure amendment revealed; public officials to receive catered meals from top Baton Rouge restaurants

April 1, 2017 by tomaswell

No sooner than we post our story about Public Service Commissioner MIKE FRANCIS lobbying for a return of the free lunch for PSC members than we get an anonymous tip about another of those furtive bills sneaked through on the final day of last year’s legislative session—a-la the infamous 2014 Edmonson Amendment—which apparently renders Francis’ effort moot.

Put another way, the most expensive free lunch in Louisiana history is now the order of the day.

An amendment tacked onto an otherwise innocuous bill goes much further than even Francis intended, however.

While the bill itself was not initially identified by our source, it was passed unanimously by both the House and Senate and signed into law by Gov. John Bel Edwards, we’re told. More specific information will be forthcoming as we learn more about the amendment.

Details are still sketchy at this point but all elected state officials, as well as appointed members of boards and commissions, will receive gourmet lunches catered by two of Baton Rouge’s most expensive restaurants whenever they convene in Baton Rouge. The menu will range from prime steaks to prime rib to lobster—and more, much more.

That includes not only the 144 members of the legislature for every day the legislature is in session and when members attend committee meetings throughout the year, but the LSU Board of Supervisors, the University of Louisiana System Board, the Board of Elementary and Secondary Education (BESE), the PSC, the Insurance Rating Commission, and hundreds of other boards and commissions as well.

The amendment also increased the cap on the amount that can be spent on meals by 70 percent, from $50 to $85. That does not include the cost of drinks, which also will be provided gratis for elected and appointed officials.

The new law, while exempting those officials from the $50 cap, leaves the limits in place for state employees.

The cost of this newest perk is expected to easily exceed $1 million per year just for legislators. The countless members of boards and commissions who meet throughout the year in Baton Rouge who also will be eligible for the new perk will increase that cost even more, though there is no way to calculate how much that will be.

But there apparently will be no cost to taxpayers since lobbyists will be responsible for payment of the cost of the meals and drinks. Various special interests will pick up the tabs on a rotating basis with Oil and Gas interests buying one day, banks the next, then private prisons, etc., for legislators.

For the individual boards and commissions, those interests with the most to gain from legislation will be participating. Utility, pipeline, cable TV and trucking companies, for example, will split the costs for PSC members with insurance companies sharing the cost for the Insurance Commissioner and the Insurance Rating Commission, private prisons will be treating members of the Pardon and Parole Board, and charter and voucher schools will strap on the feedbag with BESE members.

Opposition, albeit nearly a year too late, was nevertheless easy to find. Attorney General Jeff Landry blamed Gov. John Bel Edwards for letting the amendment slip through. “I am dedicated to protecting the interests of the voters on matters such as this and the governor obviously is not. That’s why when I’m elected governor, I will work diligently to repeal this amendment. I’m putting legislators on notice right now: if you sponge off lobbyists and take advantage of senior citizens, children, conservative, patriotic, anti-Islamic Republican voters, I’m coming after you.”

His words were echoed by U.S. Sen. John Kennedy, who said, “I supported Donald Trump from day one and you oughta carry a handgun. I have also always said we don’t have a revenue problem in Louisiana, we have a spending problem. This proves it. Legislators make between $32,000 and $66,000 a year, including their $159 per diem for each day they’re in Baton Rouge. When I’m governor, they’ll buy their own damn lunch. And they can drink weed killer.”

Legislators contacted by LouisianaVoice were surprisingly candid in their support of the amendment.

“Look, we have to eat, too,” said Rep. Carl Spackler of Shongaloo. “We come down here every year and in the past we’ve had to scramble to find lobbyists who will buy us dinner. Lunch is usually out of the question because we’re tied down at the Capitol during the day and we have to settle for the lousy food in the cafeteria. And a lot of evenings, it’s raining out and we get soaked running from our cars to the restaurant. And don’t even talk to me about the Baton Rouge traffic. It’s hardly worth the free steak and Merlot Cabernet Franc.”

Sen. William J. Le Petomane of Mamou agreed. “We come here and listen to all the whining from state agencies about budget cuts. I only get to see my girlfriend when I’m here in Baton Rouge and my constituents really cut into my time with her. I got her a job with the state but she’s pretty high-maintenance, so these meals will free up per diem money that I can spend on little gifts to keep her happy. In that regard, the amendment will be added incentive for us to do our jobs when we’re in town.”

Lobbyist Al Cverzik, who represents the Louisiana Nutria Preservation League, said the easing of restrictions on meals and drinks will give lobbyists greater access to legislators. “We have to compete with all these ordinary citizens to get our message across. Well, we have a right to be heard, too. Having a sit-down with them over a porterhouse steak and a glass or two of whatever will help us immensely.”

The bill goes into effect today—just in time for the upcoming legislative session which kicks off on April 10, a week from this Monday.

Posted in Politics | 25 Comments »

LSP heir-apparent Lt. Col. Dupuy booted back to State Police Academy—as a major; more changes, retirements speculated

March 31, 2017 by tomaswell

The shakeup continued at Louisiana State Police (LSP) Friday afternoon with the reduction in rank of former Superintendent Mike Edmonson’s top aid and heir-apparent and the promotion and reassignment of two others, according to the email below that was sent out to all LSP personnel:

From: Rhonda Fogleman On Behalf Of Deputy Secretary
Sent: Friday, March 31, 2017 2:45 PM
To: _DPS_Personnel
Subject: Transfer & Promotion Effective March 31, 2017
Importance: High

The following personnel changes are made effective at close of business on Friday, March 31, 2017:

Major Mike Noel transferred and promoted to Lieutenant Colonel, Interim Assistant Superintendent/Interim Chief of Staff

LTC Charlie Dupuy transferred and reassigned as Major, Command Inspector, Training

Major Frank Ducote transferred and reassigned as Major, Command Inspector, Patrol Operations/Region I

Authority of:   Colonel Kevin Reeves, Superintendent

In another development, LouisianaVoice has learned that Lt. Stephen Lafargue has resigned his position as trustee for the Louisiana State Police Retirement System. He was considered one of six Edmonson supporters on the board which will take up Edmonson’s retirement later in April.

Dupuy, once the odds-on favorite to eventually move into Edmonson’s position, was implicated in that October trip to San Diego by Edmonson and 16 subordinates to see Edmonson receive a national award. The four who drove to San Diego via Las Vegas and the Grand Canyon did so in the state vehicle assigned to Dupuy.

Maj. Noel, who previously served as a command inspector for the Gaming Division, will take over as lieutenant colonel in the position of Interim Assistant Superintendent and Interim Chief of Staff to Col. Kevin Reeves who assumed Edmonson’s duties last Saturday.

Noel, a veteran of 27 years with LSP was earning $140,900 as a major but will receive a significant pay increase to $161,300 as lieutenant colonel as he takes over the day-to-day operations of LSP.

Those at LSP who are familiar with Noel told LouisianaVoice he was a good choice for the position. “He’s an excellent choice,” said one trooper who asked not to be identified. “He’s even-handed and has a great disposition. Col. Reeves couldn’t have picked a better person for the job.

Ducote’s reassignment to the position previously held by Reeves was described as a lateral transfer. He presently earns $140,900.

Dupuy, on the other hand, will realize a significant reduction in pay to $140,900 from his current level of $161,300 as he returns to the position he held at the State Police Training Academy before being tapped by Edmonson as his chief of staff.

It may not be the last change at LSP as Reeves settles into his position One State Police insider said the transfer of Dupuy could signal that the Reeves appointment by Gov. John Bel Edwards and the Noel appointment are permanent instead of interim and that more demotions, transfers and retirements could be in the offing.

Others who might yet be transferred to other positions include Master Trooper Thurman Miller, Lt. Col. Jason Starnes who now presides over the Management and Finance Section, and Trooper T.J. Doss who currently serves as the State Trooper representative and as chairman of the Louisiana State Police Commission. Doss has been considered by some as Edmonson’s plant on the commission. Doss, from Ruston, has been TDY’d (assigned temporary duty) to Baton Rouge and presently resides at the State Police Academy.

The shakeup at LSP has been a long time coming as the agency has been buffeted by one damaging story after another—all reflecting on Edmonson’s leadership and administration of some 1,500 troopers statewide.

The San Diego trip was the tipping point as Edwards seemed determined to stick by his decision to reappoint Edmonson following his election in 2015 despite the controversy swirling around LSP. Edmonson had the support of the Louisiana Sheriffs’ Association which had endorsed Edwards in his runoff against former Sen. David Vitter.

Even before the San Diego trip, there were disciplinary problems, illegal campaign contributions and other issues that proved to be a source of constant embarrassment to the governor.

LSP is currently under investigation by the Division of Administration, the Legislative Auditor’s Office, and the FBI, all of which eventually forced Edwards to make the decision to allow Edmonson to announce his retirement, which took effect March 24.

When Edwards appointed Reeves to succeed Edmonson, there was speculation within the department that Edwards had prevailed upon Reeves to retain Dupuy as chief of staff to mollify the sheriffs but with Dupuy’s demotion and transfer, that now appears not to have been the case.

LSP public information officer Maj. Doug Cain said Reeves has had a busy first week in his new leadership role. “He’s been meeting with (Department of Public Safety) unit heads and senior staff within LSP in an effort to communicate his agenda for the department.”

Maybe it’s just us, but it seems a lot of meetings weren’t necessary to know there is a real problem at LSP. But the first step in resolving problems is to first acknowledge them.

Posted in Boards, Corruption, Ethics, Governor's Office, Retirement, State Police | 14 Comments »

St. Landry District Attorney delinquent in paying Louisiana State Police $291,000 for almost a year of LACE payments

March 29, 2017 by tomaswell

While much has been written lately here and by other news outlets about overtime abuse by Louisiana State Police (LSP), particularly on that infamous trip to San Diego back in October, there is a program whereby State Troopers may legitimately accrue overtime through an agreement with local district attorneys

The Local Agency Compensated Enforcement (LACE) detail is a program established pursuant to an agreement between LSP and the district attorneys whereby fines collected by the local criminal court fund may be used to pay State Troopers overtime pay for additional highway patrols for traffic enforcement.

Prior to implementing a LACE program, the local law enforcement, judges and district attorneys must agree to implement the program, and the criminal court fund authorized by Louisiana R.S. 15:571.11(L) may be used to fund the overtime pay off-duty police officers to provide law enforcement services.

In 2011, the latest year for which figures are available, Louisiana State Police issued 120,437 speeding citations on LACE and 68,932 on regular duty, according to the 2012 annual report of the Louisiana Highway Safety Commission. With these combined resources, Louisiana experienced a 10.46 percent decrease in speed-related fatalities in 2011.

The program has not been without controversy as LouisianaVoice has found troopers, particularly in Troop D in Lake Charles, who were allowed to work LACE while suspended from regular duty for disciplinary reasons.

But what happens when a local district attorney signs on to the program and then doesn’t pay State Police for the overtime?

Well, since the troopers performed the work, they must be paid so the money comes from the LSP budget instead of from fines collected by the local jurisdiction as was the original intent.

That’s exactly what has happened in St. Landry Parish where the parish is in arrears by more than $290,000 for 11 months, from March 2016 through January of this year.

Because of the district attorney’s failure to pay, LSP has suspended LACE activity for St. Landry Parish.

The monthly amounts owed LSP by St. Landry District Attorney Earl Taylor range from $17,870 for August 2016 to $39,392 for January of this year, according to a month-by-month accounting provided by LSP pursuant to a LouisianaVoice public records request.

Charles Cravins, formerly the regional director for the Fourth Congressional District, serves as Taylor’s Chief Administrative Officer, lending credence to the idea that he would be the one to see that the bills are paid. The District Attorney’s Web page boasts, that Cravins’ “extensive administrative experience” and his background in public service “makes him well equipped to handle the day-to-day operations of the D.A.’s office.”

So how did St. Landry manage to get 11 months in arrears (not counting February or March of this year)?

“I have no idea,” said LSP public information officer Maj. Doug Cain.

Could it be because so many cases are nolle prossed?

“No way,” says a retired State Trooper. “With the income they generate from tickets, they have plenty of money to pay LSP.”

He’s probably right, considering I-49 runs through St. Landry which provides a ready-made money machine for traffic courts from Lafayette to Shreveport.

Perhaps a better question is why did LSP allow Taylor to ignore his obligations for long while continuing to assign troopers to LACE duty in St. Landry?

Perhaps Taylor is about to make efforts to finally bring his account current.

In a two-page letter to Taylor dated March 22—two days before State Police Superintendent Mike Edmonson’s retirement took effect—LSP Assistant Secretary and General Counsel Gene Cicardo referenced a payment schedule the district apparently has agreed to. Cicardo asked that Taylor sign and return a copy of the letter “to memorialize our agreement” so that LSP may be paid for its work and so that it may reinstate the LACE program for St. Landry.

Posted in Courts, Finances, Judges, State Police | 2 Comments »

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