Workers’ Compensation · Primary-source case analysis

Tapia: A Medical Lien Claimant Must Prove Its Charges Are Reasonable

Decision: Workers’ Compensation Appeals Board, ADJ4564224 (LBO 0322121), decided September 17, 2008. Document: WCAB en banc opinion and decision after reconsideration.

Tapia explains what an outpatient-surgery lien claimant must prove when the compensability of treatment is established but the amount charged remains disputed.

The lien dispute concerned price, not just treatment

SB Surgery Center furnished outpatient services and sought payment through a lien. The dispute required the WCAB to determine whether the claimed charge was reasonable, a separate element from whether the industrial injury and treatment were compensable.

The claimant carries the initial burden

The Board held that the lien claimant must prove by a preponderance of the evidence that its charge is reasonable. A bill establishes what the provider charged; standing alone, it does not establish what a reasonable payment should be.

Reasonableness may be shown with varied evidence

The inquiry is not confined to evidence of amounts accepted by nearby facilities. Relevant evidence may include market information, comparable services, the complexity of the procedure, facility costs, payment patterns, and other facts that rationally bear on value. The defendant may rebut that showing with its own evidence.

The Board rejected automatic full payment

A factfinder need not award the entire billed amount merely because the defendant's rebuttal is imperfect. If the claimed charge is unreasonable on its face or unsupported by persuasive evidence, the Board may determine a lower reasonable value from the record.

Key takeaways

Discuss the procedural record

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