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Minnesota Legislature

Office of the Revisor of Statutes

    Subdivision 1. Purpose. It is the purpose of this section to provide for review of clinical
health care providers who render services to injured employees. This review shall be achieved by
establishing a quality control system within the Department of Labor and Industry.
The commissioner shall hire a medical consultant to assist in the administration of this
The medical consultant shall be a doctor of medicine licensed under the laws of Minnesota.
The medical consultant shall perform all duties assigned by the commissioner relating
to the supervision of the total continuum of care of injured employees and shall also advise
the department on matters on which the commissioner requests the consultant's advice or if
the consultant deems it appropriate.
    Subd. 2. Scope. The commissioner shall monitor the medical and surgical treatment provided
to injured employees, the services of other health care providers and shall also monitor hospital
utilization as it relates to the treatment of injured employees. This monitoring shall include
determinations concerning the appropriateness of the service, whether the treatment is necessary
and effective, the proper cost of services, the quality of the treatment, the right of providers to
receive payment under this chapter for services rendered or the right to receive payment under
this chapter for future services. Insurers and self-insurers must assist the commissioner in this
monitoring by reporting to the commissioner cases of suspected excessive, inappropriate, or
unnecessary treatment. The commissioner in consultation with the Medical Services Review
Board shall adopt rules defining standards of treatment including inappropriate, unnecessary, or
excessive treatment and the sanctions to be imposed for inappropriate, unnecessary, or excessive
treatment. The sanctions imposed may include, without limitation, a warning, a restriction
on providing treatment, requiring preauthorization by the board for a plan of treatment, and
suspension from receiving compensation for the provision of treatment under chapter 176. The
commissioner's authority under this section also includes the authority to make determinations
regarding any other activity involving the questions of utilization of medical services, and any
other determination the commissioner deems necessary for the proper administration of this
section, but does not include the authority to make the initial determination of primary liability,
except as provided by section 176.305.
    Subd. 2a.[Repealed, 1995 c 231 art 2 s 110]
    Subd. 3. Medical Services Review Board; selection; powers. (a) There is created a
Medical Services Review Board composed of the commissioner or the commissioner's designee
as an ex officio member, two persons representing chiropractic, one person representing hospital
administrators, one physical therapist, one registered nurse, and six physicians representing
different specialties which the commissioner determines are the most frequently utilized by
injured employees. The board shall also have one person representing employees, one person
representing employers or insurers, and one person representing the general public. The members
shall be appointed by the commissioner and shall be governed by section 15.0575. Terms of
the board's members may be renewed. The board may appoint from its members whatever
subcommittees it deems appropriate. Notwithstanding section 15.059, this board does not expire
unless the board no longer fulfills the purpose for which the board was established, the board has
not met in the last 18 months, or the board does not comply with the registration requirements
of section 15.0599, subdivision 3.
The commissioner may appoint alternates for one-year terms to serve as a member when a
member is unavailable. The number of alternates shall not exceed one chiropractor, one physical
therapist, one registered nurse, one hospital administrator, three physicians, one employee
representative, one employer or insurer representative, and one representative of the general
The board shall review clinical results for adequacy and recommend to the commissioner
scales for disabilities and apportionment.
The board shall review and recommend to the commissioner rates for individual clinical
procedures and aggregate costs. The board shall assist the commissioner in accomplishing public
In evaluating the clinical consequences of the services provided to an employee by a clinical
health care provider, the board shall consider the following factors in the priority listed:
(1) the clinical effectiveness of the treatment;
(2) the clinical cost of the treatment; and
(3) the length of time of treatment.
The board shall advise the commissioner on the adoption of rules regarding all aspects of
medical care and services provided to injured employees.
(b) The Medical Services Review Board may upon petition from the commissioner and after
hearing, issue a warning, a penalty of $200 per violation, a restriction on providing treatment
that requires preauthorization by the board, commissioner, or compensation judge for a plan of
treatment, disqualify, or suspend a provider from receiving payment for services rendered under
this chapter if a provider has violated any part of this chapter or rule adopted under this chapter,
or where there has been a pattern of, or an egregious case of, inappropriate, unnecessary, or
excessive treatment by a provider. Any penalties collected under this subdivision shall be payable
to the commissioner for deposit in the assigned risk safety account. The hearings are initiated
by the commissioner under the contested case procedures of chapter 14. The board shall make
the final decision following receipt of the recommendation of the administrative law judge. The
board's decision is appealable to the Workers' Compensation Court of Appeals in the manner
provided by section 176.421.
(c) The board may adopt rules of procedure. The rules may be joint rules with the
rehabilitation review panel.
    Subd. 4.[Repealed, 1987 c 332 s 117]
History: 1983 c 290 s 84; 1984 c 432 art 2 s 15,16; 1985 c 234 s 10; 1986 c 461 s 10; 1987
c 329 s 21; 1987 c 332 s 23,24; 1992 c 510 art 4 s 6-8; 1995 c 231 art 2 s 52,53; 2001 c 123 s
5; 2001 c 161 s 34; 2002 c 262 s 3