Medical Risk Law Weekly News

Week of: January 16, 2012


Seeking Reimbursement for Insertion of Unapproved IUD Constitutes Fraud

An obstetrician-gynecologist was convicted of Medi–Cal fraud. The defendant intended to defraud, and committed Medi-Cal fraud, when the defendant submitted the false claims for reimbursement for an IUD approved by the FDA and used the code knowing it designated only an FDA-approved IUD but the defendant actually inserted in the patient the non-FDA approved IUD.


FDA Recalls Some OTC Products Due to Presence of Foreign or Broken Tablets

The FDA announced a voluntary recall by the manufacturer of some over-the-counter products including Excedrin® and NoDoz® with expiration dates of December 20, 2014 or earlier and Bufferin® and Gas-X Prevention® products with expiration dates of December 20, 2013 or earlier.

FDA Recalls Polymyxin B, Vecuronium Bromide Vials Due to Glass Particulate Matter

The FDA initiated a voluntary recall of polymyxin B for injection USP and vecuronium bromide for injection after visible glass particles were discovered in a limited number of vials.

FDA Issues Recall of Ventilators that Can Stop Delivering Therapy

The FDA issued a Class 1 recall of the Trilogy 100 ventilator due to a manufacturing issue that can cause the device to stop delivering therapy to the patient. Part of the blower that circulates air and other gases through the ventilator may move out of position and cause the device to alarm.


Denial of Workers’ Compensation Could Not Be Based on Error-Filled Doctor’s Report

An employee sought workers’ compensation benefits for injuries sustained while lifting a boxed toilet at work. The claim was denied on the grounds that the employee’s injury as reported did not arise out of the course of employment. The court cited medical records containing conflicting evidence as to cause of the injury. The appellate court found that one doctor’s reports were so rife with errors that fair-minded persons in the exercise of impartial judgment could not reasonably infer that the reports provide substantial evidence that the employee injured himself in a manner that would preclude compensation, and therefore reversed the circuit court’s denial of the claim.

Depression Caused by Failure of Business Not Compensable Work-related Injury

The owner/manager of a steel manufacturing company was diagnosed with hypertension and major depression following the failure of the business. The court held that the claimant's major depression, which was caused by the stress of the failure of the claimant's business, did not constitute a compensable injury as the possibility of a business failure was a normal condition of employment.

Personal Reaction Test Could Not Be Used to Assess Injury from Emotionally Traumatic Workplace Event

An employee allegedly developed severe depression resulting from employer-initiated vocational rehabilitation after a work-related injury prevented the employee’s return to his prior work. The court held that it was error to assess the employee’s claim based on a “personal reaction test” i.e. whether the traumatic event could have caused a similar injury in an ordinary employee not predisposed to this injury by a mental disorder.