Client Alert: Mandates in the Golden State: Do Not Get National
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Client Alert: Mandates in the Golden State: Do Not Get Distracted by National Mandate Mayhem Mandates in the Golden State: Do Not Get Distracted by National Mandate Mayhem Last week, we provided guidance on the national vaccination mandates, including the Healthcare Workers’ Mandate issued by CMS, and (2) the 100-Employee Mandate issued by OSHA. After some rapid back-and-forth decisions on the federal circuit, the Supreme Court will hear challenges to both mandates on January 7, 2021. Because of Omicron, we believe the Court will act relatively quickly to render a decision. However, we recommend that California businesses and healthcare facilities remain focused on compliance with state mandates. Generally, the scope of California’s Covid-19 mandates is on parity with the federal rulings, if not more comprehensive. In addition, California is one of 22 states that has its own OSHA program (CAL/OSHA). As such, whenever a new federal OSHA regulation is passed, California has a 30-day grace period to establish an identical plan, or to adopt something similar that will be “at least as effective.” What does this mean? First, California healthcare personnel are already required to get vaccinations. This was mandated for employees at general acute care hospitals as well as other healthcare workers. All of whom must get booster shots by February 1, 2022. So, whether or not the Supreme Court approves the federal healthcare workers vaccine mandate, the Court’s decision will have limited impact on California healthcare. In regards to the 100-Employee mandate—targeting companies not included in
the national healthcare mandate—if that is approved as well, CAL/OSHA will have 30 days to decide to adopt or adapt the mandate for California businesses. The CAL/OSHA board is scheduled to meet January 20, 2022. We expect they will decide if new standards must be adopted by large California corporations in order to comply with the national 100-Employee mandate. We are monitoring the situation, and will send out updates accordingly. In the meantime, the state mandate for all non-healthcare employers goes into effect on January 14, 2022. By then, California employers, irrespective of their size, will need “to establish, implement, and maintain an effective written Covid-19 Prevention Program.” The State has conveniently provided a fillable model program for employers. Nelson Hardiman LLP Healthcare Law for Tomorrow Nelson Hardiman regularly advises clients on workplace policies related to Covid-19. We offer legal services to businesses at every point in the commercial stream of medicine, healthcare, and the life sciences. For more information, please contact us. Authored By: Yehuda Hausman, Law Clerk Harry Nelson, Managing Partner VIEW CLIENT ALERT *This article is provided for educational purposes only and is not offered as, and should not be relied on as, legal advice. Any individual or entity reading this information should consult an attorney for their particular situation.*
Client Alert: Ryan’s Law: Terminally Ill Patients are Finally Allowed Marijuana in CA Hospitals Ryan’s Law: Terminally Ill Patients are Finally Allowed Marijuana in CA Hospitals On September 28, 2021, Governor Newsom approved Senate Bill 311, better known as “Ryan’s Law.” The legislation requires hospitals and certain health facilities to allow terminally ill patients to use medical cannabis, subject to certain restrictions. Governor Newsom had previously vetoed a prior iteration of the bill (SB 305) in 2019, owing to fears that participating hospitals or hospices might jeopardize Medicare and Medicaid (CMS) reimbursements if they permitted medical cannabis onsite, as marijuana remains illegal under federal law. Sponsoring Senator Ben Hueso (D-San Diego) spoke to the repeated setbacks facing the legislation: “It is inconceivable to me that, in a state where medical cannabis was legalized more than 25 years ago, those in deepest suffering receiving treatment in our state’s healthcare facilities cannot access this proven, effective, and prescribed treatment.” Why Now? A confluence of factors helped to allay fears associated with permitting marijuana use in health facilities. Since FY2014, congressional omnibus bills have included a rider prohibiting the Department of Justice from using taxpayer fund to prevent states from “implementing their own laws that authorize the use, distribution, possession, or cultivation of medical marijuana.” AG Merrick Garland has articulated the Biden Administration’s “hands-off” approach with regards to state
marijuana laws. Most significantly, CMS specifically assured California legislators that it would not pull funding for participating hospitals without DOJ backing. What Must Health Facilities Know Healthcare administrators and managers should take note of some important caveats and qualifications. While healthcare facilities cannot prohibit “patient use of medicinal cannabis due solely to the fact that cannabis is a Schedule I drug,” there is a safe harbor clause that, should federal regulatory agencies reinstate cannabis enforcement, healthcare facilities may suspend compliance with state law. Although a hospital must allow patient access, it need not procure or provide medical cannabis, or dispense medical marijuana from its pharmacy. This ‘arms-length’ length approach was designed to buffer healthcare facilities should federal enforcement revive under a new administration. The legislation applies only to those who are “terminally ill,” that is patients with a life prognosis of “one year or less, should the disease follow its natural course.” State hospitals and chemical dependency recovery hospitals are excluded from the measure. The measure does not apply to emergency departments or patients receiving emergency care. Required Actions The California measure requires affected hospitals and healthcare facilities to undertake several actions. In summary, they must: Establish written guidelines for the use of medical cannabis on their premises. Provide the patient with a “locked container” to secure
the cannabis, to ensure the safety of others. Obtain a copy of patient’s marijuana identification card or a letter from attending physician stating patient’s need for medicinal cannabis. Include the use of medicinal cannabis in patient’s medical records. Prohibit smoking or vaping as methods of use. We advise healthcare facilities to review compassionate cannabis guidelines with their counsel before implementation. Nelsonn Hardiman LLP Healthcare Law for Tomorrow Nelson Hardiman regularly advises clients on cannabis related laws and regulations. We offer legal services to businesses at every point in the commercial stream of medicine, healthcare, and the life sciences. For more information, please contact info@nelsonhardiman.com Authored By: Yehuda Hausman, Law Clerk Harry Nelson, Managing Partner VIEW CLIENT ALERT *This article is provided for educational purposes only and is not offered as, and should not be relied on as, legal advice. Any individual or entity reading this information should consult an attorney for their particular situation.*
Client Alert: COVID Confusion Clarity:Federal CMS, OSHA, and CAL/OSHA Vaccination Mandates At every level of government, the key policy question for the second half of 2021 has been what to do about unvaccinated Americans. The basic role of federal, state, and local government is to promote the public welfare. At the same time, government is responsible to preserve individual freedom and liberty. Amidst a global pandemic, the conflict between these values will continue to confront judges resolving legal challenges to the growing list of vaccine mandates. In turn, employers tasked with implementing and enforcing these mandates in their workplaces will face their own challenges. Below, we have analyzed the primary three Federal vaccination mandates that directly impact private employers, as well as the healthcare and life science industry:[1] 1. November 4, 2021 — The Centers for Medicare and Medicaid Services (CMS) issued the Interim Final Rule (IFR). 2. November 5, 2021 — The Occupational Safety and Health Administration (OSHA) issued (“100-Employee”) Covid-19 Emergency Temporary Standard (ETS) . 3. June 28, 2021 — Mid-year, OSHA also issued a Covid-19 Healthcare ETS, tailored specifically to the Healthcare Industry. Immediately following the November CMS and OSHA mandates, plaintiffs – including 27 States – brought legal challenges against these mandates. As these challenges move through the courts, the Delta and Omicron Covid-19 variants continue to spread, increasing the pressure at all levels to accelerate the implementation vaccination requirements. Let’s first look
at the CMS mandate and then the two OSHA rulings. The CMS Mandate As of November 5, 2021, CMS requires specified Medicare and Medicaid certified providers to enforce vaccination requirements for (1) staff members & employees, (2) licensed practitioners, (3) trainees, students, & volunteers as well as (4) employees of outside contractors that may provide care or other onsite services, such as cleaning or food services. As far as vaccinations themselves, those covered by the mandate should have received their first dose by Dec. 6, 2021 and their second dose by January 4, 2022. Some staff may be entitled to a legal exemption based on a medical condition or a sincerely held religious belief. However, 100% remote workers are not subject to the ordinance. Penalties Effective December 3, 2021, CMS has suspended enforcement of this mandate because of ongoing litigation. If the CMS mandate is reinstated, it may enforce through civil penalties, denial of payment for new patients, and termination of Medicare/Medicaid provider agreements. Given the threat to federal reimbursement, providers at risk should not delay compliance once the question of enforceability is resolved as determined by the courts. What Entities Are Included? There are over 20 specific types of providers and suppliers that are required to implement the ETS ruling. Here is the CMS list (Source): Ambulatory Surgical Centers (ASCs) Hospices Psychiatric residential treatment facilities (PRTFs) Programs of All-Inclusive Care for the Elderly (PACE) Hospitals (acute care, long-term care, psychiatric hospitals, children’s hospitals, transplant centers, oncology hospitals, and inpatient rehabilitation
facilities). Long Term Care (LTC) Facilities, including Nursing Homes (SNFs & NFs) Intermediate Care Facilities for Intellectual Disabilities (ICFs-IID) Home Health Agencies (HHAs) Comprehensive Outpatient Rehabilitation Facilities (CORFs) Critical Access Hospitals (CAHs) Clinics, rehabilitation agencies, and public health agencies as providers of outpatient physical therapy and speech-language pathology services Community Mental Health Centers (CMHCs) Home Infusion Therapy (HIT) suppliers Rural Health Clinics (RHCs)/Federally Qualified Health Centers (FQHCs) End-Stage Renal Disease (ESRD) Facilities What Healthcare Entities are Exempt? The ruling does not apply to physician’s offices, organ procurement companies, or portable X-Ray Suppliers. As far as ad hoc service providers—i.e. an elevator inspector, or a repair worker— visiting a health facility on a limited basis, they will not need to show proof of vaccination. In addition, companies that are not physically present at the patient treatment site are exempt. For example, Telehealth and off- site payroll providers are not subject to the CMS mandate. OSHA’s Healthcare Covid-19 ETS On June 28, 2021 OSHA issued a directive specifically targeting Covid-19 exposures in the healthcare industry. Its purpose was to protect healthcare workers from the occupational hazard of contracting Covid-19. With few exceptions, this ETS applies to all settings where any employee provides healthcare services. This includes hospitals, assisted living facilities, emergency responders, home healthcare workers, as well as ambulatory caregivers
working where suspected or confirmed Covid cases are being treated. OSHA has published a summary of employer requirements. Generally, employers are required to: Conduct a hazard assessment and implement a Covid-19 plan for each workplace. Screen patients, non-employees, and any other visitors for symptoms of Covid-19. Ensure that employees where facemasks indoors, and provide facemasks on other PPE to protect individuals from exposure. To limit contact with suspected or confirmed COVID-19 patients to those employees essential for treatment. Clean and disinfect adjacent equipment. Maintain 6 ft. social distancing. Utilize disposable barriers and fixed work spaces in areas where a 6 ft. separation cannot be maintained. Follow standard cleaning and disinfection procedures in accordance with the CDC. Provide sanitizer and accessible handwashing facilities. As COVID-19 spreads through airborne transmissions, there are requirements for HVAC systems and air filters. Daily screening of employees. Notify specific employees who may have exposed to person in their workplace who has tested positive with COVID-19. Remove employees who have or are suspected of having Covid-19 It may be necessary to provide paid leave and benefits for individuals who must quarantine. Provide reasonable time and paid leave for vaccination, and recovery from vaccine side-effects. Train employees so they are aware of workplace Covid-19 procedures and policies. Record employee cases of Covid-19.
Report work-related Covid-19 fatalities within 8 hours, and in-patient hospitalizations for Covid-19 within 24 hours. A significant number of States have already adopted or incorporated the OSHA ruling in their own mandates. While California, acting preemptively, issued guidance for healthcare workers on May 16, 2021, six weeks ahead of the federal mandate. Compliance with CAL/OSHA requirements ensures federal compliance by default. Additionally, on December 22, 2021, Governor Newsom announced that that CA healthcare workers will need booster shots by February 1, 2022. OSHA’s (100-Employee) Covid-19 ETS OSHA’s large employer mandate – covering private employers with 100 or more employees – is the most extensive national vaccination and testing regime to date. Entities that were already subject to OSHA’s Healthcare-specific ETS (see previous section) are exempt from the new Covid-19 ETS. For life science organizations and all others with more than 100 employees, this may be the only relevant federal mandate. Requirements 100-Employee Covid-19 ETS In general, the ETS requires employers to: Develop and enforce a mandatory vaccination policy or, alternatively, to establish a bilateral policy allowing employees to either elect vaccination, or, to undergo weekly Covid-19 testing and to wear a mask at the workplace. Obtain proof of vaccination from employee and maintain records of each employee’s vaccination status. Provide reasonable time and paid leave for vaccination, and recovery from vaccine side-effects. Require employees to give prompt notice if they have contracted Covid-19. Remove employees from workplace if they have been diagnosed with Covid-19, or tested positive for
Covid-19. Ensure face coverings while indoors for employees who are not fully vaccinated. Inform employees in plain language writing of its Covid-19 policies and procedures, and provide them with the CDC document, “Key Things to Know About COVID-19 Vaccines” which discusses vaccine benefits, and describes employee protections against discrimination and retaliation. Report work-related Covid-19 fatalities within 8 hours to OSHA, and in-patient hospitalizations for Covid-19 within 24 hours. Make certain that employee Covid-19 are available upon request by the employee or a consented representative. Employers must comply with most provisions by January 10, 2022. However, compliance with the testing provision is extended to February 9, 2022. For California businesses, unfortunately, the federal mandate will likely cause some confusion. On December 16, 2022, CAL/OSHA issued its own revised Covid-19 ETS for employers, which goes into effect January 14, 2022. There are some significant differences: 1. CAL/OSHA does not have a 100-employee minimum. All California employers, irrespective of their size, will need a “to establish, implement, and a maintain an effective written Covid-19 PreventionProgram.” They have conveniently provided a fillable model program for employers. 2. CAL/OSHA does not have a vaccination requirement, but it will require employers to monitor employee vaccination status and make available free weekly or bi-weekly Covid-19 tests during paid time, whenever there is an “outbreak,” or “major outbreak” in the workplace. The CAL/OSHA board is scheduled to meet January 20, 2022. We believe they will attempt to better align state and federal standards at that time.
Enforcement and Unemployment: Vaccine Refusers Beware! For organizations whose employees and other onsite personnel are providing proof of vaccinations, the primary burden of the vaccine mandates is likely to be compliance with recordkeeping requirements. For employers encountering reluctance and resistance from the workforce, on the other hand, the questions become (a) consideration of alternatives, such as permitting weekly Covid-19 testing; (b) consideration of requests for reasonable accommodation on medical or religious grounds; and (c) difficult choices of termination or suspension for employees who refuse to cooperate. For example, in some states, the calculus will be complicated by “anti- mandate” laws and regulations. Iowa, Florida, Tennessee, and Kansas have recently passed legislation specifying that workers terminated for vaccination refusal, can still receive unemployment benefits. However, in many other states, termination of employees refusing vaccination or testing, may be used as grounds for denying state unemployment benefits. Employers are well advised to seek state-specific counsel to navigate the implementation of vaccine related rules. Nelson Hardiman LLP Healthcare Law for Tomorrow Nelson Hardiman regularly advises clients on workplace policies related to Covid-19. We offer legal services to businesses at every point in the commercial stream of medicine, healthcare, and the life sciences. For more information, please contact Info@nelsonhardiman.com [1] This article does not address the other two federal mandates, which apply to federal agency employees and to federal government contractors. Authored By: Yehuda Hausman, Law Clerk
Harry Nelson, Managing Partner VIEW CLIENT ALERT *This article is provided for educational purposes only and is not offered as, and should not be relied on as, legal advice. Any individual or entity reading this information should consult an attorney for their particular situation.* Client Alert: Genetic Information Privacy Act: What Do Genomics Companies (and Everyone Else) Need to Know? On January 1, 2022, a new privacy statute, GIPA (the Genetic Information Privacy Act), will introduce significant protections for California residents who undergo non-medical genetic testing. Some 30 million people have spat in a tube and shared their unique genetic data with prominent genealogy companies, like Ancestry.com and 23andMe. Customers expect their DNA will be used for tracking down distant relatives and discovering new branches on the family tree. But very few will study the lengthy disclosures indicating how their personal genetic information might be sold or shared with third parties. A broader concern is that, once genetic data is uploaded to a digital database, it can potentially be exposed to accidental data breach or cyber-theft, like any other information stored in “the cloud.” As the genomics industry continues to evolve, GIPA will hopefully protect California residents from having their genetic data shared with third parties without their consent or knowledge.
Industry Impact As of January 1st 2022, affected companies will need to update their customer consent forms so that they satisfy the “plain language” requirements of the new law. Specific consent forms for data transfers and sales to third-parties will need to identify the third-party recipient by name. Considering the implausibility of obtaining consent from users who have ceased using the web interface, this law may render much of these databases useless for remarketing to for-profit entities. In general, policies and procedures regarding the collection, use, and maintenance of genetic data will also need to be prominent and easily accessible on company websites, so consumers can learn how their information is being used. In addition, companies will need to create straightforward mechanisms allowing consumers the ability to delete their accounts, revoke consent, and request that their biological data be destroyed. Stiff Penalties The negligent violation of the statute can be assessed a civil penalty of $1,000. While the penalty for intentional violation is set between $1,000 and $10,000. As each violation is “separate” and “actionable”, liability for a mass data breach is immense. The statute itself stipulates that public attorneys can prosecute actions for relief. This is in addition to potential class-action claims. Who is Exempt
A number of service providers and professionals are excluded from the reach of GIPA: Licensed medical professionals that use biological data solely for diagnosing and treating patients. Covid-19 testing companies. (A previous iteration of the bill, which would have impacted pandemic testing, was vetoed by Governor Newsom.) There are also some use exclusions for “deidentified data,” where the genetic data cannot be matched with a particular person. Under certain circumstances, database information can be shared with an educational non-profit for scientific purposes. If the Law Applies to You… If your business is in possession of a genetic database, transports biometric samples, or engages in genomics research and development, there are some immediate steps to take. We recommend the following: Businesses involved in marketing, selling, interpreting, or analyzing direct-to-consumer genetic testing should review and update their consent forms. Website information may require extensive review and updating so information is easily accessed and comprehended by consumers. Risk-analysis. Companies that store genetic information, digitally or physically, should review their security precautions. Even companies that maintain genetic databases, but do not offer DTC genetic testing, must comply with the new statute. We invite you to contact us with any additional information you have obtained regarding this important matter. Authored By:
Yehuda Hausman, Law Clerk Harry Nelson, Managing Partner VIEW CLIENT ALERT *This article is provided for educational purposes only and is not offered as, and should not be relied on as, legal advice. Any individual or entity reading this information should consult an attorney for their particular situation.* Nelson Hardiman Adds Chambers-Ranked, Renowned Corporate Finance Attorney LOS ANGELES (PRWEB) DECEMBER 16, 2021 Moshe Kupietzky, one of the most respected corporate finance attorneys in Los Angeles, has joined healthcare law firm Nelson Hardiman, deepening its bench for transactional matters. “Moshe Kupietzky has built a reputation as being on a short list of the very best corporate finance attorneys in Southern California and nationally, representing buyers and sellers in complex transactions. It is a genuine privilege for us to add an elite M&A lawyer of Moshe’s caliber to our ranks. He brings the kind of serious expertise that our healthcare and life science clients need,” said Managing Partner Harry Nelson. Kupietzky joins Nelson Hardiman from the Reed Smith law firm. Previously, he served as head of Sidley Austin’s Los Angeles Corporate and Finance practice for more than 20 years, and served as managing partner of the firm’s Los Angeles office
from 2003–2009. As reflected by over a decade of Chambers USA ranking, Moshe is recognized as a market-leading corporate and finance attorney. He has represented national and international companies across a broad spectrum of industry sectors to structure complex mergers and acquisitions, joint ventures, private equity purchases, strategic partnerships and consolidations, and related opportunities. Moshe also brings deep experience in financing and M&A transactions. “Nelson Hardiman has an exceptional reputation as a dynamic, cutting edge law firm, which made it a seamless transition for me,” said Moshe Kupietzky. “I look forward to contributing to the expansion of the firm’s transactional expertise and practice.” A graduate of Harvard Law School, Kupietzky has been frequently recognized for his leadership and more than five decades of professional impact and influence in the corporate arena. Since 2007, Chambers USA has annually named him a leading Corporate/M&A attorney, and, since 2008, also a leading lawyer in Banking & Regulatory. He has also been named among The Best Lawyers in America in Corporate Law each year since 2011. About Nelson Hardiman Nelson Hardiman LLP is the premier healthcare and life sciences firm in Los Angeles, serving healthcare and life science providers, investors, and organizations that need experts on the most difficult questions with deep industry knowledge and relationships. The firm’s litigation practice specializes in defending fraud and abuse and whistleblower actions, government investigations, and other complex business disputes. Nelson Hardiman’s transactional group handles healthcare organization acquisitions, sales, investment, and financings, and Nelson Hardiman’s regulatory team advises on compliance with licensing, operational, and reimbursement issues across the full continuum of healthcare industry sectors, with expertise on Medicare and Medicaid requirements,
privacy and data security, FDA, and other regulatory matters. The firm has earned a singular position reputation nationally for its innovation in leadership in addressing issues in telehealth, behavioral health, and emerging therapeutic modalities. More information about the firm is available at http://www.nelsonhardiman.com or at 310.203.2800. Read Press Release Contact Us: info@nelsonhardiman.com Forbes: Predicting The Course And Impact Of The Covid Crisis In The New Year From the article: The Covid-19 pandemic, which has had more ups and downs than a rollercoaster ride, shows no signs of ending anytime soon. The latest turn of events was the discovery last week of the Omicron variant, which scientists are scrambling to understand. This crisis reminds me of something American baseball legend Yogi Berra once said: “It ain’t over till it’s over.” His acute observation is underscored by the following predictions from doctors, experts and others about the coronavirus crisis in 2022. 100,000 More Deaths Harry Nelson is the founder and managing partner of Nelson Hardiman, a healthcare law firm. He said, “For the unvaccinated…Covid-19 will remain much more of a wildcard. I
suspect we will see at least another 100,000 Americans dead in 2022, drawn from the ranks of the unvaccinated. “As time goes on and this stark contrast between the respective risk levels becomes more apparent, I expect vaccination rates to increase from the current 60% to closer to 70% of the U.S. population,” Nelson concluded. Another Winter Wave Dr. Andrew Noymer is an associate professor of population health and disease prevention with the University of California Irvine Program in Public Health. He predicted that, “The pandemic in 2022 will have another winter wave, less severe and less deadly than in winter 2020-21, but nonetheless still significant, and, in most places, more concerning than the ‘Delta [variant] wave’ of summer 2021. “Omicron is a variable here, but even without Omicron, there will be a winter wave. The regulatory environment for retail businesses (masking, vaccine verification, and so on) will continue to vary from place to place, but in general the pandemic will not cease but become the ‘new normal’, in an only-slightly attenuated state from right now.” High Rates Of Infection Dr. Rich Parker a former medical director of Beth Israel Deaconess Care Organization, is now a hospice physician, medical consultant and chief medical officer of Arcadia. “I predict that in 2022, we will still see high rates of infection in areas with low vaccination rates. These areas will have stressed healthcare systems with shortages of healthcare staff and hospital beds. “Businesses in these areas will also have more difficulty hiring and retaining workers who do not wish to be at further risk of contracting Covid. Therefore, businesses can prepare for 2022 by either mandating vaccination or offering significant incentives for employees to get vaccinated,
including the booster shots,” he advised. A Court Ruling On Vaccine Mandate Nannina Angioni is a labor and employment attorney and partner of the Los Angeles-based law firm Kaedian. She said that, “We will have a final ruling —likely from the U.S. Supreme Court—about Biden’s vaccine mandate, which will affect business operations nationwide. “Businesses will also continue to grapple with local masking and vaccine requirements, including [sometimes having] difficult conversations with their clients and customers,” she said. Harder To Recruit And Keep Employees Suky Sodhi is the president of staffing agency Professional Selection. “I believe talent is going to be more difficult to attract and retain,” she predicted. “Larger companies need to be prepared for mass exits which is going to impact their businesses, as those who refuse to get the vaccine are forced to seek alternative employment opportunities. “This is also a great opportunity for companies to look at remote set-ups for existing employees, and international talent for new vacancies, where they can utilize skills outside of their usual reach. Companies need to think carefully about implementing the blanket enforcement without investigating how they can protect society while still respecting their employee’s freedom of choice,” Sodhi counseled. Erratic Wait Times In Global Supply Chain Jason Fullmer is the chief operating officer of 3D printer company Formlabs. He that that, “In 2022, the fall out of the Covid-19 pandemic will continue to have an impact on manufacturing and the global supply chain. The long, erratic wait times will not go away anytime soon, especially as more variants emerge and potentially disrupt international travel
and shipping routes. “To account for these disruptions, businesses will prioritize making their supply chain and manufacturing processes more redundant and decentralized in 2022,” he observed. Increased Liability Risks Daniel R. Strecker is senior counsel with the Harris Beach law firm. “As the Covid-19 global pandemic persists into 2022, I predict businesses, real estate owners, manufacturers, distributors, and retailers will face continued premises and product liability risks…The situation has become more complex in connection with a patchwork of vaccine mandates, which has put vaccinated and unvaccinated people into close contact. He said that, “… awareness of potential claims and defenses, and ongoing compliance with state and federal health guidelines, will remain critical to avoid incidents now and lay the groundwork for future defenses should claims nevertheless arise. “Plaintiffs must do more than prove someone became sick—often they must prove negligence, notice, a product defect, or a breach of warranty, and causation. Depending on the state law that applies, following state and federal guidelines may provide immunity. In others, it constitutes evidence that the defendant was not at fault,” Strecker noted. Advice For Business Leaders Keep Calm Nelson of the Nelson Hardiman law firm, said, “… the best thing business leaders can do is be a source of calm, spreading the message that Covid-19 is going to keep looking more and more like the flu, and the panic is worse than the risk (for the vaccinated). “Leaders need to find the resources to be empathetic to people who remain overly stressed by Covid-19 and the people
who are continuing to put themselves at risk needlessly by forgoing vaccination.” Monitor Data Don Silver is the chief operating officer of Boardroom PR. He recommended that, “Businesses have to keep a close eye on the data and advisories from the CDC and others and maintain an open line of communications with their workforce and customers and to have alternative plans to help everyone stay as safe as possible.” Accept Reality John Goodman of John Goodman PR said that, “Business[es] that have not already adapted to our Covid world will be forced to change. Flexible work schedules will become commonplace. Companies will enhance their work/family benefits to attract and retain employees. “And those businesses that remain stuck in the past will continue to lose talent to other companies that offer either hybrid or remote work and better benefits. The bottom line: living in our Covid world is now the new normal. And businesses must come to that reality and pivot or else face the consequences,” he concluded. Read Full Article Top Lawyers: Harry Nelson of Nelson Hardiman On The 5
Things You Need To Become A Top Lawyer In Your Specific Field of Law From the article: The legal field is known to be extremely competitive. Lawyers are often smart, ambitious, and highly educated. That being said, what does it take to stand out and become a “Top Lawyer” in your specific field of law? In this interview series called “5 Things You Need To Become A Top Lawyer In Your Specific Field of Law”, we are talking to top lawyers who share what it takes to excel and stand out in your industry. As a part of this interview series, I had the pleasure of interviewing Harry Nelson. Harry, the founder of Nelson Hardiman, has been called the leading healthcare lawyer in America. Apart from his regulatory strategy work in other areas of healthcare and life science innovation, he developed the regulatory pathway for telehealth companies that were acquired in 2021 for collectively over $2 billion. His lessons from crisis response work in the overdose crisis led to the best-selling “United States of Opioids: A Prescription for Liberating a Nation in Pain.” Harry’s advocacy work related to America’s healthcare future has led to numerous awards and has produced tangible results to improve healthcare regulations at the federal and state levels. Thank you so much for joining us in this interview series. Before we dig in, our readers would love to get to know you a bit more. What is the “backstory” that brought you to this particular career path in Law? Did you want to be an attorney “when you grew up”?
Igrew up in the Midwest (Detroit). My father and his father both went to law school, but went on to the seminary and become rabbis. I was much older before I felt the spiritual pull, so as a teenager, I felt like I could break the family mold by not just going to law school but actually practicing law. Originally, I thought I would be a prosecutor. But after a summer in college interning for a congressman on Capitol Hill, I came away fascinated by the way government regulations ruled over so many American industries — and how broken the whole system was. Back then, the government was rolling back regulations in airlines and telecom, leaving the lawyers who specialized in those areas scratching their heads with what they would do next. So I figured out that I wanted to become an expert in an area that wasn’t going to be deregulated anytime soon, which turned out to be healthcare. To me, living in a country that spends more than anyone in the world for a terrible system, it was simultaneously the biggest opportunity and most broken part of our whole system. Can you tell us a bit about the nature of your practice and what you focus on? My practice has 3 sides. For companies in areas of healthcare and life science innovation, like telehealth, behavioral health, genomic testing, stem cells, psychedelics, I function as a regulatory lawyer and strategist, helping early stage ventures navigate uncharted or less charted regulatory waters from ideation to all the way to wherever they want to go. For healthcare and life science companies in crisis due to regulatory mistakes (fraud, patient safety, privacy violations or other noncompliance), I help them fix what is broken — remediating compliance issues, repairing relationships internally, with government agencies, with insurance companies. And for many healthcare companies, I serve as a one- stop shop when they need outside regulatory counsel for ongoing business needs. You are a successful attorney. Which three character traits do
you think were most instrumental to your success? What unique qualities do you have that others may not? Can you please share a story or example for each? I don’t think I would be where I am if I wasn’t driven. Life would be more fun if I wasn’t constantly driven to work relentlessly to produce the highest quality work product and advice, and to be the best. I would set better boundaries. My wife and my kids are ready to kill me sometimes because I am rarely fully away from the work. I will be on the ski lift with my kids and a client has an issue, and I am in the thick of it. I get a complete separation only from Friday night to Saturday night because we observe Shabbat, but I think that indefatigable drive is the number one thing that separates me from my colleagues. I think my empathy has been a difference-maker. I once had a doctor who kept calling me. He lived on the other side of the country, but had gotten my name from a friend. He told me from the beginning that he was already working with two other lawyers I knew and respected, one of whom was nationally renowned, but I took his calls as a courtesy and then took a meeting with him. I kept telling him, “You’re in good hands already. You don’t need me.” He said to me, “I did my homework and I know I’ve hired the best people. But I also know that you are every bit as good as they are. And the difference is, when I talk to them, they leave me cold. But when I talk to you, I feel you are in it with me, and my anxiety just lifts.” It was an epiphany for me that part of my difference is that personal bond and my ability to give clients emotional support in a way other lawyers didn’t. He taught me not to hold back, to lean in to the emotional side of a client’s needs. I think that my ability to manage stress and to process things quickly has been a key difference. I work in areas of law where the norm for lawyers is to be super-cautious and slow, and I know it drives clients crazy. There’s way too much hemming and hawing because it’s stressful to stake out a
definitive position in areas where technology has outpaced the law, and where there’s confusion and ambiguity. I have come to the view that, as long as I am transparent about what I know and where I am thinking out loud, I can give clients my best advice in a way that is specific and in real-time, without making them wait for a memo a couple weeks later. I regularly have clients who tell me, “I spent the last six months and tens of thousands of dollars with other lawyers getting the run around, and you just gave me the answer on our very first call.” It only happens because I can manage the stress of being put on the spot constantly, process the situation, the challenge, calibrate to the audience, and give the answer that is needed. Do you think you have had luck in your success? Can you explain what you mean? I have unquestionably had some good breaks that you could call lucky. I was once standing in line at a hotel valet parking waiting for my car after an event, when a lawyer I knew from another firm walked by with a colleague and introduced me. That introduction produced one of my biggest clients of the past decade. I view the kindness of people on a daily basis who happen to think of me and make connections as the greatest kind of luck. I’ve come to the belief that everything happens for a reason, that we can’t understand why good things happen or why bad things happen. All we can do is be grateful for the breaks we get and find a way not to hold onto anger and resentment with the ones that don’t go our way. I’ve got a way to go on that score, but I have learned to process things quickly so that I can move on and focus on the next thing. Do you think where you went to school has any bearing on your success? How important is it for a lawyer to go to a top-tier school?
I am proud of being a Michigan alum. I think it mattered at the beginning of my career that it was a top school. It helped me get a clerkship with a judge in Hawaii, who maybe only gave me an interview because he was Michigan alum. It helped with my first job at a firm in Chicago, at a firm with other people from elite schools, having the right markers on my resume. But I know as many lawyers without fancy academic pedigrees who were as or more driven than me that have killed it. It definitely gives you a leg up in the early days of your career, but I also think over time, it really doesn’t matter where you went to school. And what I have seen being in Los Angeles is that it may be just as valuable to have a network of local alumni (be it USC or Loyola) than to have high- ranking school without a strong presence in the community. Based on the lessons you have learned from your experience, if you could go back in time and speak to your twenty-year-old self, what would you say? Would you do anything differently? I would say a few things: First, I would say there are times I should have been more patient. I sold a big position out of Amazon when Webvan cratered that I can’t even think about. Hang in there on those bets. Second, I would say it took me a while to really have fun with the work, to be myself fully, to feel a sense of not just purpose, but joy. I think my early days as a lawyer were too focused on making the senior folks I worked for happy, to meeting expectations, and not focusing on setting up the life that I wanted. I worried too much about what other people thought and not enough about what I needed. I would tell my younger self not to waste time getting to know my interior self and to embrace my work style, my risk tolerance, and my passions. I would spend more time with fellow creatives and people who are energizing.
Third, I would tell my younger self not to worry so much about fitting in. Law is a crowded marketplace where not standing out is basically the same as being invisible. This is not easy work. What is your primary motivation and drive behind the work that you do? It constantly changes. There was a point where I was convinced I was building an empire, a national practice and leaving a legacy. All it took was a taste of what mercenary times these are for so many lawyers for me to be dissuaded that that was a worthwhile pursuit. There is a piece that is motivated by the satisfaction of providing for my family, of taking care of the people I love, of having the autonomy to make my own choices. But I think my ultimate motivation is that I feel I am living my purpose when people bring me problems to solve, and I am able to work them out. I feel a sense of joy in connecting with people on the work, in learning of something new about feeling a momentary satisfaction about a job well done — before jumping into the next problem. What are some of the most interesting or exciting projects you are working on now? I have a handful of clients that feel like multi-billion dollar opportunities if they can work out the challenges in front of them. I am particularly excited about two projects I am working on at the cutting of personalized, genomic medicine that I think is about to revolutionize medicine. I am excited about a couple of clients who are at the forefront of psychedelic therapy, including one that is integrating psychedelics into telehealth to drive a transformation in how we treat depression and PTSD. I am really excited about a local health system client that is on the verge of rolling out a new model of behavioral health crisis response centers that have the potential to move the needle on overdose prevention
and also on addressing homeless mental health issues. Where do you go from here? Where do you aim to be in the next chapter of your career? I am really enjoying myself these days. And I still feel passionate and energized by the work I try to make sure I am focusing on doing what I love, doing it well, staying on top of the next big things. Beyond my practice, I am working with a publisher on a new book addressing America’s overdose crisis. I’ve been asked to get involved in some more television projects, and am trying to figure out a roadmap to make sure my public service messages for America’s healthcare future are being heard. I have gotten some informal inquiries about taking a leadership role in some type of (appointed, not elected) public service. I am taking interesting calls and keeping my ear to the ground. I haven’t figured out what the next chapter is for me. I am trying to build up a strong cadre of colleagues who can bear more of the “heavy lifting” in client work that I currently do, so that I have the option to re-allocate more time to other projects, but that is a work in progress. Without sharing anything confidential, can you please share your most successful “war story”? Can you share the funniest? My favorite war stories involve jumping in at the last minute into projects that couldn’t be resolved by other people and taking care of business. I once got a call from the general counsel of one of the biggest telehealth companies in the country. He was panicked because the Medical Board of California was about to commence a hearing against one of their doctors. Their regular law firm handling the case had reassured them the matter would be settled on mutually agreeable terms, and then informed them that they were wrong, and there was no way to prevent the case from going forward in
just over a week. The Deputy Attorney General handling the case was an impossible, ideological person, on a mission, who I had butted heads with before, and I knew she was never going to give ground. So I went over her head and made a direct appeal to the Board leadership and painted a picture of why this case needed to be shut down. Less than 24 hours before the case was scheduled to start, with the doctor about to board a plane to come to California, the case was dismissed. No explanation. Grateful client, very unhappy prosecutor. My other favorite war story is that I had a publicly traded client in a different area of healthcare being railroaded out of California by a licensing agency. They had many locations, and it was going to be a disaster for them. I decided that the case needed a new lawyer, but that it would be better for me to bring in another law firm so I could serve as the expert witness. The strategy paid off when the administrative law judge found in his decision that I was the authoritative person on the issue in question (corporate practice medicine), as exemplified by the number of times that the Attorney General’s office kept citing me. He wouldn’t let them pick and choose. It was a case with hundreds of millions of dollars at stake for the client, and my testimony won the case. The state agency adopted it and abandoned a multi-year battle with the company. The funniest story for me was the one that led me to become the very first healthcare lawyer in the country to start doing medical marijuana work. In 2009, the Obama Administration had just announced it would stop raiding California’s medical marijuana dispensaries if they complied with state guidance. I was known for my DEA-related work, including petitioning for DEA research permits for cannabis, so my phone started ringing off the hook with marijuana-related clients. I said, “I don’t really know much about medical marijuana law beyond doctors. Let me find the right lawyer who understands dispensaries, cultivation, product development. I called around and found
the lawyer everyone in town described as the expert. Everyone else advising was a criminal defense lawyer, but this was the preeminent “corporate lawyer” for cannabis in California. I left a voicemail message for him. He called me back and we had a nice conversation late in the day. I was getting ready to email the people who called me his name the next day, when he called me again. He literally had no recollection whatsoever that we had already spoken. I realized he had been as high as a kite in both conversations. I decided I couldn’t in good faith give his name to anyone, so I decided to roll up my sleeves and start learning cannabis. Within a year, we had the biggest cannabis practice in Southern California. The lawyer later became a client and a friend, but to this day, I credit him with inspiring me to tackle the space. Ok, fantastic. Let’s now shift to discussing some advice for aspiring lawyers. Do you work remotely? Onsite? Or Hybrid? What do you think will be the future of how law offices operate? What do you prefer? Can you please explain what you mean? Personally, I like to be in the office. It’s quiet these days (more than half of our team is still remote), but I like the ability to bounce ideas around with my colleagues who are there. The work is getting done, but I would say some of the emotional support and connection we give each other is gone when everyone is remote. I also think it is weakening our culture and the bonds that tie us together. I already hate how mercenary law practice has become, and I think this makes it worse. I am trying to make the most of it personally by traveling more, taking advantage of the ability to be someplace else, stretching out my time away. I think it is the future. We have 42,000 square feet of space and can function with a fraction of it in the post-pandemic world. I would not want to be in the commercial real estate business. Law firms are going to get much more space efficient, and I think we are going to see a wave of innovation in digital tools to let u
better connect remotely. How has the legal world changed since COVID? How do you think it might change in the near future? Can you explain what you mean? There have been some positive changes. I used to have many projects that needed an in-person meeting to get going. These days, everyone is just fine with an initial meeting or a kick- off via Zoom. I think location matters less than ever. We are getting new clients all over the country and also globally more than ever. At the same time, we are competing with good lawyers and firms all over the country, so it forces us to up our game. As a healthcare lawyer, COVID has also brought up many new legal issues for us to tackle, and driven the growth of pandemic-friendly businesses, like diagnostic lab testing and telehealth that were already sweet spots for us. We often hear about the importance of networking and getting referrals. Is this still true today? Has the nature of networking changed or has its importance changed? Can you explain what you mean? I would be nothing without an amazing network of lawyers at other firms and former clients who give my name out all over the place, who vouch for me, and who sing my praises when people need someone who does what I do. So networking is still critical to me. The pandemic put our ability to nurture our networks on hold, because we stopped seeing each other, and were limited to more impersonal emails and calls. I have had a slight advantage with regular TV appearances because I tend to be highly visible on social media so people don’t forget about me. But networking in person will be a big focus again with COVID hopefully in check. Based on your experience, how can attorneys effectively leverage social media to build their practice? It keeps evolving. At one point, I had massive visibility on
LinkedIn, and then they changed their algorithm, and I went from thousands of views per day to several hundred per week. I have had good results with Facebook, although I am still learning. I feel like I am still at square one in learning how to use Instagram for engagement. I think of social media as a visibility tool which is useful for activating my network. The work flows mostly through the network, but the social media visibility keeps me on the network’s mind. Excellent. Here is the main question of our interview. What are your “5 Things You Need To Become A Top Lawyer In Your Specific Field of Law?” Please share a story or an example for each. 1. Research: You are dead in the water in healthcare law if you aren’t on top of the latest regulation or pronouncement in whatever jurisdiction you are dealing with. The ground is constantly shifting. I’ve picked up more than a few clients because their last lawyer missed a particular change. For example, after Medicare announced the 36-month rule limiting home health agency changes of ownership, I saw an influx of work because one of our competitors had failed to advise client that it was coming. 2. Writing: I am in the business of persuading investors or acquirers of early stage ventures that the regulatory compliance concerns expressed by other lawyers are not a real problem — or that they are addressable. I am constantly relying on my ability to write to win hearts and minds and get deals done. Just last week, we had a national law firm ready to kill an acquisition of one of our clients over an expressed compliance concern. I generated a memo that convinced the other firm’s client that they were being unduly conservative. This work is all about the writing. 3. Speaking: There are many moments when being able to deliver the message clearly and succinctly is the difference between success and failure. I have been though a number of eleventh
hour conversations where being confident and firm makes the difference as to whether the deal gets done or not. 4. Problem-Solving: So much of the work is figuring out the best way to navigate through the puzzle. People call us when they are stuck or confused or lost. The job comes down to knowing the landscape and then thinking critically, thinking creatively, and thinking quickly, because something bad is going to happen if we don’t figure out the solution and get it done. 5. Interpersonal: I don’t see how you can be successful if you can’t listen, relate to clients and make them feel heard and understood. People need to really be able to trust and rely on their lawyer on sensitive healthcare questions. We are very blessed that some of the biggest names in Business, VC funding, Sports, and Entertainment read this column. Is there a person in the world, or in the US with whom you would love to have a private breakfast or lunch, and why? He or she might see this. I get to interact with more sports and entertainment celebrities than you might think who are considering or joining cutting edge healthcare/life science ventures, and my job is to settle down VCs so clients can get the funds they need. If I had to confess a fascination, I would love a chance to schmooze with Elon Musk. I love his drive to innovation and would like to sell him on some life science opportunities. Slightly geekier second choice would be to pick Ray Kurzweil’s brain. I have a lot of questions for him. This was very inspiring. Thank you so much for the time you spent with this. We wish you continued success and good health! _______________________________________ Contact: info@nelsonhardiman.com
Client Alert: MultiPlan Named As Central Figure In Antitrust Lawsuit Alleging Health Insurance Monopoly Scheme The liquidating bankruptcy trust for Verity Health System of California recently filed a lawsuit in the Superior Court of the State of California, County of San Francisco, against third-party “re-pricer” MultiPlan, including its subsidiaries Viant and Data iSight, and more than a dozen of MultiPlan’s customers – including major commercial payers like Anthem, United Healthcare, Aetna, Cigna, and others – alleging antitrust claims under California’s Cartwright Act and Unfair Competition Law. According to the lawsuit, MultiPlan acted as an unlawful “corporate hub” of a classic “hub, spoke, and rim” agreement among the re-pricer and its various insurance company clients, to “fix” the amounts that would be reimbursed to healthcare providers on out-of-network claims. The complaint alleges that reductions in reimbursement payments for healthcare services rendered by providers nationwide totaled approximately $10 billion per year from 2012 to 2020, driving up profits for MultiPlan’s insurance company clients, and also for MultiPlan itself. Indeed, the timing of the lawsuit is significant, as it comes
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