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What's Hot in Workers' Comp

The Commonwealth Court of Pennsylvania Narrows Who May Seek Recourse Through The Workers’ Compensation Act’s Fee Review Process

Scomed Supply v. Hartford Accident & Indemnity Company and Sedgwick Claims Management Services (Bureau of Workers' Compensation Fee Review Hearing Office), No. 79 C.D. 2025 (Pa. Cmwlth. March 16, 2026)

March 19, 2026

by Alana M. Staniszewski

On March 16, 2026, the Pennsylvania Commonwealth Court provided much-needed clarification on who may seek recourse under Section 306(f.1)(5) of the Pennsylvania Workers’ Compensation Act—specifically through the Fee Review process. In Scomed Supply v. Hartford Accident & Indemnity Company and Sedgwick Claims Management Services, the court held that Scomed Supply, a retail seller of durable medical equipment and medical supplies, does not qualify as a “health care provider” under the Act, and therefore had no standing to dispute the amount of payment issued by the workers’ compensation insurance carrier through a fee review.

The case itself stems from a straightforward set of facts. Scomed provided medical supplies (electrodes, batteries, lead wires, moisturizer, and alcohol wipes) to the claimant. The supplies were all related to the claimant’s TENS unit that had been prescribed by the claimant’s physician for treatment of a work-related injury. Between July 2023 and April 2024, Scomed provided these supplies to the claimant on ten separate occasions, and billed the workers’ compensation carrier.

The carrier paid less than the full amount billed. Unsatisfied with the amount of the payment, Scomed filed five fee review applications with the Bureau of Workers’ Compensation Medical Fee Review Section. The section found that the carrier was not required to issue any additional payment. Still unsatisfied with the amount of payment issued, Scomed filed hearing requests, which were assigned to Hearing Officer Colleen Pickens.

In its defense, the carrier argued and Hearing Officer Pickens agreed that Scomed was not a health care provider as defined by Section 109 of the Act and thus, had no recourse under Section 306 (f.1)(5). Notably, a Fee Review Hearing Officer has the jurisdiction to conduct a hearing on whether a person invoking the remedy set forth in Section 306(f.1)(5) is a “provider" under the Act. See Armour Pharmacy v. Bureau of Workers 'Comp. Fee Rev. Hearing Off (Wegman's Food Markets, Inc.), 206 A.3d 660, 671 (Pa. Cmwlth. 2019) (en banc).

Section 109 of the Act defines a "health care provider" as

any person, corporation, facility or institution licensed or otherwise authorized by the Commonwealth to provide health care services, including, but not limited to, any physician, coordinated care organization, hospital, health care facility, dentist, nurse, optometrist, podiatrist, physical therapist, psychologist, chiropractor or pharmacist and an officer, employee or agent of such person acting in the course and scope of employment or agency related to health care services. (emphasis added).

Scomed argued that the Act defines health care providers broadly and should be construed to include durable medical equipment. The court rejected this argument, noting that both Section 109 and the Act's Medical Cost Containment (MCC) Regulations describe entities that are "licensed by the Commonwealth to provide health care services." The court emphasized that Scomed concerns itself primarily with the sale or distribution of medical goods, not services. They do nothing to treat a patient, but instead merely dispense a product and function as a middleman. The court emphasized that this is insufficient to extend the recourse offered by the Fee Review process.

The court then reviewed two related decisions issued by it and the Pennsylvania Supreme Court: Harburg Medical Sales Company v. PMA Management Corp., No. 635 C.D. (Pa. Cmwlth., August 30, 2021) (holding medical supplies distributor at issue was not a health care provider because it was neither licensed nor authorized by the Commonwealth to provide health care services); and Schmidt v. Schmidt, Kirifides, and Rassias, PC (WCAB), 333 A.3d 310 (Pa. 2025) (holding any item prescribed by a health care provider as a part of a treatment plan for a work-related injury qualifies as medicines and supplies under Section 306(f.1)(1)(i)).

Scomed attempted to argue that it was distinguishable from the company at issue in the Harburg case, emphasizing that its various accreditations and compliance with federal regulations made it a more qualified provider than the one at issue in Harburg. While the court acknowledged Scomed’s accreditations, it rejected the argument, again turning the focus to Scomed’s function as a provider of goods, not health care services.

Scomed also attempted to assert that the Pennsylvania Supreme Court’s decision in Schmidt should permit recourse for itself under the Act’s fee review process, as the decision broadly interprets the phrase “medicines and supplies” and broadly interprets what items should be covered by the insurance carrier. However, the court emphasized that whether an item qualifies as a covered supply, is an entirely separate issue from who qualifies as a provider, and the core of this litigation was whether Scomed was a provider. As such, the court also rejected this argument.

Finally, Scomed attempted to argue that as a matter of policy, the court should extend the recourse offered through the fee review process, as shutting medical supply companies out of the process undermines the Act and impacts injured workers’ access to necessary supplies. The court acknowledged Scomed’s concern but asserted that the plain language of the Act does not permit an extension of the fee review process, and if Scomed wants this to change, that change must come from the legislature.

Ultimately, this case provides workers’ compensation carriers and claims administrators a much needed line of defense against fee review challenges from entities that supply medical goods, not services, to injured workers. It also provides defense counsel a vehicle through which they can seek the dismissal of some of the ever increasing number of fee reviews. However, this case does leave an issue unresolved—what recourse, if any, do these medical supply companies have when they believe bills have been underpaid? Until that question is resolved by the legislature or further court order, practitioners and insurers alike should review all fee reviews to determine the applicability of this new defense.

Firm Highlights

Thought Leadership

Casual Care, Serious Consequences: How Informal Prescribing Can Trigger Medical Board Scrutiny

The lesson for health care practitioners is that regular review of the regulatory requirements can ensure compliance and that casual prescribing may be in violation of state regulations if the necessary components are not met. Consider the following scenario: in December 2025, a medical provider renewed a prescription for a long-standing telemedicine patient receiving a Schedule II controlled dangerous substance. This was not a violation of the New Jersey Administrative Code. Another provider doing the same action for an equally situated patient in March 2026 would be in violation. The casual prescriber who is not aware of newer regulatory requirements may have a more difficult time responding to a medical board complaint. Medicine is a highly-regulated helping profession. Without addressing the merits of this regulatory burden, the practice of medicine continues to see drastic changes impacting the everyday life of patient and provider. Telemedicine, COVID-19, and other advances and roadblocks, present a challenge to those saving lives while attempting to comply with the rules of practice. Physicians often discover—through real cases and the lens of regulatory expectations—that even well-intentioned informal help can be reinterpreted as stepping outside mandated professional boundaries, and seemingly harmless actions can be construed as deviations from required practice standards specifically outlined in Title 13, Chapter 35, Subchapters 7.1A of the New Jersey Administrative Code. Title 45, "Professions and Occupations," of the New Jersey code governs the practice of medicine, nursing, optometry, pharmacy, and many other professional occupations. Section 9 specifically addresses the state board of medical examiners and allows for the creation of rules and regulations in Section 45:9-5.3. These regulations can be found in the New Jersey Administrative Code Title 13, Chapter 35. While broad in scope, Chapter 35 contains a subchapter dedicated to the administration and dispensing of prescription drugs. Such knowledge will arm physicians with the tools they need to prevent a negative outcome if a medical board complaint is filed. Likewise, attorneys must be familiar with these regulatory requirements when advising and defending providers. In New Jersey, N.J.A.C. Section 13:35-7.1A(a) requires that a practitioner conduct an examination and appropriately document the same within the medical record before dispensing drugs or issuing prescriptions. The examination must include an "appropriate history and physical examination," a diagnosis based upon the examination and any testing consistent with good medical care, the formulation of a therapeutic plan discussed with the patient, and the availability of appropriate follow-up care. There are only six exceptions to this requirement: In admission orders for a newly hospitalized patient For a patient of another physician for whom the practitioner is taking calls For continuation medications on a short-term basis for a new patient prior to the patient's first appointment For an established patient who, based on sound medical practice, the physician believes does not require a new examination before issuing a new prescription For a patient examined by a healthcare professional who is in collaborative practice with the practitioner When treatment is provided by a practitioner for an emergency medical condition Emergencies are also limited to situations where someone's health is in serious jeopardy, there is serious impairment to bodily functions, or serious dysfunction of any bodily organ or part. During the COVID-19 pandemic, then New Jersey Governor Phil Murphy issued an executive order declaring a public health emergency and a state of emergency that allowed authorized prescribers to prescribe Schedule II controlled dangerous substances via telemedicine. The order was terminated when he left office earlier this year and the state reverted to the requirement of an initial in-person examination and quarterly in-person visits. With this return to prior regulatory requirements, practitioners subject to the jurisdiction of the board of medical examiners may benefit from a refresher on the regulatory limitations on their practice now that the pandemic-era flexibilities have ended. This new requirement may create confusion for prescribers and lead to casual prescribing of medication in violation of the regulations, even in the setting of recurrent telemedicine appointments as noted in the example above. Casual prescribing can take many forms: filling a prescription request from a friend or family member without an examination or contemporary medical record; using telemedicine to expand your practice without proper in-person appointments or documentation in the medical record; failing to ensure appropriate follow-up care for a "one time" prescription; etc. Although not all board complaints end in a publicly available opinion, serious deviations from regulatory requirements can shine a light on practices that will require action by the board if a complaint is received. Consider the following cases: In October 2025, the board issued a final consent order in an administrative action where a doctor provided opioids without examination and his license was permanently revoked. In re Robert Dela Gente, D.O., N.J. State Bd. of Med. Exam'rs Oct. 21, 2025. Criminal charges were filed (though that is not always the case). In a September 2025 consent order, a physician was reprimanded for "prescribing opioids several months in advance without the proper patient follow-up..." and explained that they did so for "patients who can not pay for multiple visits to refill medications." In re A/an E. Schultz, M.D., N.J. State Bd. of Med. Exam'rs Sept. 25, 2025. Another physician was suspended and placed on probation in a consent order for prescribing three patients the weight-loss medication "Ozempic" via text messages through a website called "Push Health" and without any further communication with the patients or taking a medical history. In re Laura E. Purdy, M.D., N.J. State Bd. of Med. Exam'rs Aug. 29, 2025. A June 2025 interim consent order required a "full evaluation and assessment of [a physician's] general knowledge and skill, with specific emphasis on his knowledge of and ability to safely prescribe [controlled dangerous substances]" due to his failure to review a patient's prior medical history and medical record, assess and review the prescription monitoring program before prescribing CDS, and conduct random urine screens on a patient that tested positive for CDS upon admission to his practice because "he trusted the patient." In re Donald Oh, M.D., N.J. State Bd. of Med. Exam'rs June 2, 2025. Each of these examples demonstrate a failure to follow strict procedure regardless of the intention. Failing to follow procedure secondary to good intentions, such as considering a patient's financial constraints, trust in the patient, or utilizing a new telemedicine service platform, will not be a defense to a board complaint. Especially when practicing via telemedicine, practitioners must ensure they are adhering to the appropriate regulatory standard. A provider who calls in a prescription for a traveling friend or family member or agrees to prescribe medication for individuals using the newest phone app will have a hard time meeting the requirements of N.J.A.C. Section 13:35-7.1A. Even if a history was taken, a "therapeutic plan" was created, and "follow up care" was provided, the prescriber would still not be in compliance with the regulation without an in-person examination. In our opening hypothetical, the prescriber's behavior did not change between December and March; however, the legal shift in the regulatory landscape made once acceptable behavior a violation as a required examination did not occur. When complaints are made with regard to informal prescribing, the board has discretion to employ measures to encourage compliance in lieu of formal proceedings such as a private, written warning; suspending fines subject to continuing compliance; medical or professional treatment as may be necessary; medical or diagnostic testing and monitoring; skills assessment; corrective training; participation in outreach programming; or contribution to the consumer fraud protection fund. The lesson for health care practitioners is that regular review of the regulatory requirements can ensure compliance and that casual prescribing may be in violation of state regulations if the necessary components are not met. Even compliant providers who had not conducted an in-person examination for telemedicine patients during the COVID-19 emergency would be in violation of the regulations as of January 2026 for the same practice. Practitioners should be diligent in adhering to the prescribing rules to avoid sanctions related to casual care. Likewise, attorneys advising or defending practitioners before the board must be aware of the in-person examination requirements for prescribing in New Jersey whether the care in question took place in-person or in a telemedicine setting. Reprinted with permission from the April 22, 2026 issue of the New Jersey Law Journal. ©2026 ALM Media Properties, LLC. Further duplication without permission is prohibited. All rights reserved.

Thought Leadership

SIDEBAR: News and Happenings

We are pleased to share that attorneys from our health care team have been selected to the 2026  New Jersey and Pennsylvania Super Lawyers and Rising Stars lists. Their dedication to clients and commitment to high-quality work continues to strengthen our firm! Please join us in congratulating: NJ Super Lawyers: Robert T. Evers and Justin F. Johnson NJ Super Lawyer Rising Stars: Nataliana A. Guida  2026 Pennsylvania Super Lawyers: Alyson J. Kirleis and Gary M. Samms 2026 Pennsylvania Rising Stars: Holli K. Archer and Daniel Dolente Victoria Scanlon (Scranton) was a faculty presenter at the 2026 American Roentgen Ray Society (ARRS) Annual Meeting in Pittsburgh. She participated in the “Resident Symposium: Producing Quality Reports,” focusing her presentation on “How to Write a Great Report: Malpractice Lawyer’s Perspective.” Vicky, the only attorney presenter for this two-hour segment, was joined by several health care professionals including diagnostic radiologists, an interventional radiologist, an internal medicine physician, and a radiologist turned AI entrepreneur expert.  Matthew Keris (Scranton), President of the Pennsylvania Association for Health Care Risk Management (PAHCRM) and shareholder in our Scranton Health Care Department, presented an important and timely session titled “Keynote Address: A Conversation with RaDonda Vaught on Criminalizing Errors” at PAHCRM’s Annual Meeting in April. RaDonda is a former Tennessee nurse widely known for being criminally convicted in 2022 of negligent homicide and gross neglect after a 2017 fatal medication error at Vanderbilt University Medical Center. Her case gained national attention because she was criminally prosecuted rather than just facing licensing board action, sparking debate over blaming individual nurses for systemic healthcare failures. Matt and RaDonda’s conversation explored one of the most consequential issues in health care risk management today—how systems respond to human error, and what it means for patient safety, accountability, and the professionals who serve on the front lines. Gary Samms was a panelist for a podcast hosted by the Medical Liability Monitor, “From Outliers to Pattern: The Increasing Predictability of Megaverdicts in the Med-Mal Industry – and How to Reduce the Likelihood of Getting Hit with One.” Gary discussed the changing megaverdict landscape and why “outlier” verdicts are becoming structural, in addition to how plaintiffs turn weaknesses into megaverdicts (including building emotional narrative and jury psychology). Thank you to our clients who joined us for our Trends in Health Care & Health Law seminar on May 14. Led by our Health Care Department Director and Assistant Director, Robin Snyder and Donna Modestine, the session explored key issues that are currently shaping outcomes in health care litigation. We owe a debt of gratitude to our esteemed guest speaker, Mary Ellen Nepps, Esq., Senior Counsel, University of Pennsylvania, who presented “Medical Malpractice Litigation: Driving Another Health Care Crisis in Pennsylvania.” And special thanks to our attorneys who presented and shared their insights, including John J. Hare and Holli Archer who discussed “Highlights in PA Medical Malpractice Law;” David Drake for his presentation, “From Claims to Courtroom: Key Trends in NJ Medical Malpractice Litigation;” and Matthew Keris with an “Update on Health Care Tech Discovery.” Thank you to all of our clients for entrusting us with your health care litigation. We are proud to partner with you as we defend your interests and navigate legal landscapes together.

Result

No-Cause Jury Verdict Secured in Wrongful Death Trial

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