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IBP

9/6/2001

Iowa's workers' compensation statute requires an employer to reimburse an employee for the costs of an independent medical examination (IME) when "an evaluation of permanent disability has been made by a physician retained by the employer and the employee believes this evaluation to be too low." Iowa Code § 85.39 (1997). In this case, the industrial commissioner ruled that the employer was required to pay for its employee's IME, even though the employee, not the employer, chose the treating physicians who had rendered disability ratings that the employee thought were too low. The district court affirmed the industrial commissioner's ruling on judicial review. The employer has appealed. We reverse and remand. [633 NW2d Page 324]


I. Background Facts and Proceedings.


The pertinent facts are essentially undisputed. The appellee, Howard Harker, is an Iowa resident employed as a truck driver by appellant, IBP, inc. On February 6, 1997, Harker was injured in a fall at IBP's West Point, Nebraska plant. When Harker presented himself to IBP's health services department, he was advised that under Nebraska law he was allowed to choose his own physician for treatment of his injuries. See Neb. Rev. Stat. § 48-120 (1997). Harker decided to seek treatment from Dr. Merle Muller, to whom he had previously been sent by IPB for an employment physical. The parties agree that Harker chose Dr. Muller and IBP acquiesced in this choice.


Dr. Muller referred Harker to an orthopedist, Dr. Raymond Sherman. Dr. Sherman, in turn, referred Harker to Dr. Leonel Herrera, a neurologist. Over a period of months, Harker saw Dr. Sherman and Dr. Herrera for treatment and rehabilitation. By the end of the summer, both doctors released Harker from their care, stating that he had suffered no permanent impairment as a result of his fall.


Harker then filed a petition with the Iowa industrial commissioner, asking for an IME at IBP's expense pursuant to section 85.39. IBP resisted, arguing that it had not retained the physicians who had rendered the permanent disability evaluations that were not to Harker's liking. A deputy industrial commissioner denied Harker's application, concluding that Harker had already "had an impairment evaluation by his own doctor."


Harker appealed the deputy's ruling to the industrial commissioner. The commissioner noted that, although Harker chose his treating physicians, IBP "acquiesced in claimant's choice of physician " and paid for their services. The commissioner concluded that Dr. Sherman and Dr. Herrera were "physicians retained by the employer in fulfilling its obligation to provide claimant with medical care," and, therefore, IBP was obligated to pay for an IME.


IBP sought judicial review of the commissioner's decision. The district court upheld the commissioner's ruling, holding that "IBP chose Dr. Mueller as Harker's employer-retained physician when it acquiesced to his course of medical treatment." IBP has now appealed to this court.


II. Scope of Review.


The Iowa Administrative Procedure Act, Iowa Code chapter 17A, governs our review. See Pirelli-Armstrong Tire Co. v. Reynolds, 562 N.W.2d 433, 436 (Iowa 1997). Section 17A.19 permits a reviewing court to reverse an agency decision when it is " n violation of constitutional or statutory provisions," or when it is "unsupported by substantial evidence in the record made before the agency when that record is viewed as a whole." Iowa Code § 17A.19(8). This court applies the standards of section 17A.19(8) to the agency's actions to determine whether our legal conclusions are the same as those reached by the district court. See Ewing v. Allied Constr. Servs., 592 N.W.2d

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