HomeMy WebLinkAbout85-023 CwynarMr. Frank Cwynar
1073 -A Huron Drive
Harrisburg, PA 17111
II. Factual Basis for Determination:
STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA I712O
October 23, 1985
OPINION OF THE COMMISSION
85 -023
Re: Pharmacist, Utilization Review, Department of Public Welfare, Public
Employee
Dear Mr. Cwynar:
This responds to your appeal of the Advice of Counsel (85 -568) dated
August 8, 1985.
I. Issue:
Whether a pharmacist in the Bureau of Utilization Review within the
Pennsylvania Department of Public Welfare is a public employee, within the
purview of the State Ethics Act and, therefore, required to file a Statement
of Financial Interests.
You are currently employed by the Pennsylvania Department of Public
Welfare, Bureau of Utilization Review, as a pharmacist. On July 24, 1985, you
filed a financial disclosure appeal which indicated that you should not be
required to file a Statement of Financial Interests as required by the State
Ethics Act, in that, your responsibilities did not meet the requirements of
the term public employee as defined in the Act. Specifically, you indicated
that your duties should be considered "ministerial" in nature and, therefore,
outside of the parameters of the Act.
Your appeal was processed as a request for advice and on August 8, 1985,
Advice of Counsel No. 85 -568 was issued. That advice concluded that based
upon your job description and prior Commission precedent, you are a public
employee within the purview of the Ethics Act and thereby required to file a
Statement of Financial Interests.
Mr. Frank Cwynar
October 23, 1985
Page 2
On August 26, 1985, the Commission received your request that the full
Commission review the Advice of Counsel. Specifically, you indicated that
while your job description and position specification does set forth certain
duties and responsibilities, you state that because you are supervised in the
performance thereof, these duties and responsibilities are ministerial.
The Commission has reviewed your job description dated September 15,
1983, regarding the position that you hold.
That job description was prepared by you and indicates that you are
responsible for various functions as follows:
Discovering, evaluating and correcting Medical Assistance overutilization
and abuse,
Screens and selects providers for active review by identifying
discrepanc;cs on provider invoices, SURS reports, Capital Blue Cross reports,
medical records and other M.A. documents and referrals.
Examines and analyzes claims, cost data, payment records, recipient
profiles, contractors' field audit reports and other documentation to
determine the advisability of conducting on -site reviews in areas of suspected
misutilization, abuse or fraud.
Contacts county assistance offices, recipients, physicians, and others to
secure information in preparation for on -site reviews; documents and records
findings; prepares reports and cases for possible corrective or legal action
and testifies at hearings.
Conducts, or participates, in on -site reviews for the purpose of
examining records and administrative procedures of providers of pharmaceutical
services and medical supplies.
Researches, studies and evaluates the quality of services supplied by
providers of outpatient services through record review, on -site review,
Medical Assistance recipient interviews, and drug sample tests in order to
detect overutilization, misutilization, underutilization, program abuse and
fraud. Obtains and reviews provider records from microfilm /microfiche to
determine if there is evidence of the substitution of brand -name drugs for
generic drugs; also compares invoices from local warehouses and direct
accounts to determine whether generic drugs are substituted for brand name and
checks if the Department has been billed for the brand -name drug.
Attends and participates in evidentiary meetings with division chief,
section chief and legal counsel to discuss the provider case histories and
case strategy.
Mr. Frank Cwynar
October 23, 1985
Page 3
Corresponds with providers, drug companies, licensing boards, Medicaid
Fraud Control Unit and other state agencies to develop case files on
individual providers; makes referrals on case information to other state
agencies when applicable.
Assists in communications with other involved state and federal agencies
to facilitate exchange of information and coordination of activities.
Prepares reports delineating reasons for review, methodology, findings,
recommendations, violations of M.A. regulations, and other pertinent data for
Preliminary Review, Full -Scale Evaluation, and charge letter.
Attends and testifies as a witness (when serving as a case coordinator)
in cases involving outpatient providers at hearings in the Commonwealth Court
and in the Federal Court.
Researches special projects involving analysis of Program Regulations,
statistical printouts or discussion with departmental staff; prepares reports
and makes recommendations regarding special projects.
Participates in the development and application of standards, policies
and procedures pertaining to the provision of outpatient services under the
Medical Assistance Program.
Prepares statistical data -and reports on providers for the Secretary,
Deputy Secretary, Bureau Chief, and any other divisions or agencies involved
in the delivery of Medical Assistance.
Provides consultation and direction to attorneys, the fiscal
intermediary, other governmental and private agencies and other departmental
staff in providing information related to this area of the Medical Assistance
Program.
Recommends policy and procedural changes in an effort to increase program
efficiency.
Recommends corrective action in cases where the provider is out of
compliance with existing standards, policy, rules and regulations; prepares
documentation as a basis for the restriction or removal of clients and
providers for participation in the Medical Assistance Program.
Monitors the field audit function of the fiscal intermediary in relation
to the utilization of pharmaceutical services, drugs and medical supplies.
Assists in developing a cost - containment and control program for drugs
and pharmaceuticals.
Mr. Frank Cwynar
October 23, 1985
Page 4
Participates in developing reporting systems and procedures for the
storage, retrieval, and evaluation of the pharmaceutical services and medical
supplies provided through the Medical Assistance Program.
Coordi nates all aspects of the Medi cal Supply Program, including the
determination of product compensability.
Assists the consultants in review Jf medical records and other pertinent
documents to establish case files when necessary; refers questionable medical
records to medical consultants to use during recipient examinations;
photographs recipients for documentation. Refers case information to other
sections where applicable.
The Advice of Counsel that was issued outlined most, i f not all , of the
foregoing duties.
In your most recent communication, you assert that while you do, in fact,
perform these functions, that you are supervised in these duties and that they
are, therefore, ministerial.
III. Discussion:
Initially, the Commission notes that your appeal of the instant advice
was filed with the Commission on August 8, 1985. This was eighteen (18) days
after the issuance and service-of that advice. The regulations of the
Commission provide that an appeal from such an advice shall be made within
fifteen (15) days of the service of the advice. As such, we believe that your
appeal has not been timely filed.
Additionally, we believe that the findings and conclusions as set forth
in that advice were correct.
As set forth in that advice, the Ethics Act provides that:
Section 2. Definitions.
"Public employee." Any individual employed by the
Commonwealth or a political subdivision who is responsible
for taking or recommending official action of a
nonministerial nature with regard to:
(1) contracting or procurement;
(2) administering or monitoring grants or
subs idi es;
(3) planning or zoning;
Mr. Frank Cwynar
October 23, 1985
Page 5
(4) inspecting, licensing, regulating or auditing
any person; or
(5) any other activity where the official action
has an economic impact of greater than a de
minimus nature on the interests of any person.
"Public employee" shall not include individuals who are
employed by the State or any political subdivision thereof
in teaching as distinguished from administrative duties.
65 P.S. 402.
The regulations of the Ethics Commission further provide that individuals
are considered public employees where they perform their duties in the field
without on -site supervision, or where they have the authority to forward or
stop recommendations from being processed, and where such recommendations are
an inherent and recurring part of their position, and where such activities
affect organizations other than the employee's own. See 51 Pa. Code §1.1.
The crucial element, of course, in this evaluation is subsection (5) of
the definition of public employee.
In construing the parameters of this provision, this Commission is
authorized to construe the coverage of the law broadly thereby making
exceptions to the filing requirements narrow. See Phillips v. State Ethics
Commission, 470 A.2d 659, (1984).
In addition thereto, the Commission has been authorized to employ an
objective standard such as the job description or job classification in
determining whether an individual is, in fact, a public employee. See
Phillips, supra at 660.
In light of the foregoing, we must focus on the job itself and not on the
individual and variable functions of the particular employee occupying the
position. See Mummau v. Ranck, 531 F. Supp. 402 (E.D. Pa. 1982) citing Branti
v. Finkle, 445 U.S. 507 at 518, 100 S. Ct. at 1294, 63 L. Ed 2d 574 (1980 .
There is no doubt when one reviews the functions of one in your position,
that you are responsible for activity that has an economic impact of greater
than a de minimus nature on the interest of individuals.
In part, you have wide latitude as per your job description on
recommending and formulating policy and information relating to the Medical
Assistance Program. You, by way of your duties, have authority to recommend
the removal of persons from the program. You assist in developing a cost
containment and control program for drugs and pharmaceuticals. We will not
repeat all of your functions but a review of these duties as previously
outlined, clearly reflect that you fall within the definition of public
employee.
Mr. Frank Cwynar
October 23, 1985
Page 6
Indeed, in your letter of August 28, 1985, you acknowledge that if one
must in truth focus on the job itself and the various functions thereof, "then
I have been a public employee since December 19, 1977," we agree.
Finally, with reference to your statement that because you have a
supervisor, your functions are ministerial, we do not believe that supervision
is the deciding factor.
Our regulations define ministerial as follows:
Section 1.1. Definitions.
Ministerial actions - -- An action that a person
performs in a prescribed manner in obedience to the
mandate of legal authority without regard to or the
exercise of the person's own judgment as to the
desirability of the action being taken. 51 Pa. Code
1.1.
Nonmi ni steri al actions - -- An action in which the
person exercises his own judgment as to the desirability
of the action taken. 51 Pa. Code 1.1.
Clearly your job description evidences wide latitude in the performance of
your duties. Indeed the description evidences that you prepare reports
delineating your reasons for review, methodology, findings and
recommendations. This clearly indicates that you have the authority to
perform in a discretionary fashion.
IV. Conclusion:
For the foregoing reasons, you are to be considered a public employee
within the purview of the State Ethics Act as a pharmacist in the Bureau of
Utilization Review, Department of Public Welfare. You must, therefore, file a
Statement of Financial Interests. This statement must be filed within thirty
(30) days of this opinion.
Pursuant to Section 7(9)(i), this opinion is a complete defense in any
enforcement proceeding initiated by the Commission, and evidence of good faith
conduct in any civil or criminal proceeding, providing the requestor has
disclosed truthfully all the material facts and committed the acts complained
of in reliance of the advice given.
This letter is a public record and will be made available as such.
P1r. Frank Cwynar
October 23, 1985
Page 7
Finally, any person may request within 15 days of service of the opinion
that the Commission reconsider its opinion. The person requesting reconside-
ration should present a detailed explanation setting forth the reasons why the
opinion requires reconsideration.
JJC /sfb
By the Co ission,
HERB 'T B. CONNER
Chai rman