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Carlton Fields

Florida Health Care Agency Files Appeal From Court Order Requiring Drug Coverage for More Than 5,000 Florida Medicaid Patients
Today, Counsel for a class of over 5,000 Florida Medicaid patients received notice that the State of Florida intends to appeal a February 16, 2006 Court Order issued by United States Magistrate Judge Theodore Klein ruling that thousands of Medicaid patients can use and receive reimbursement for the prescription drug Neurontin, and its generic equivalent gabapentin, previously denied by the State of Florida.

According to pro bono counsel, Neil D. Kodsi, a shareholder with the law firm of Carlton Fields, ""This ruling affects thousands of Medicaid recipients who rely on gabapentin to manage debilitating, life altering conditions. While the State was reimbursing these Medicaid recipients for alternative medications, some of these alternative medications had serious risk factors, including potentially fatal kidney and liver damage, and were not as effective as gabapentin.""

In 2004, the State of Florida issued a formal policy denying Medicaid reimbursement for Neurontin for any use not yet approved by the FDA or for which there was not clinically verifiable support. The FDA has approved Neurontin as an anti-seizure medication, though the drug has not been approved for pain relief. Counsel for the Edmonds class argued to Judge Klein that the Medicaid Act specifically requires the State to reimburse for any off-label use of Neurontin that was listed in the Congressionally-designated drug Compendia, which was the case for Neurontin. The verdict follows a three-day hearing in the United States District Court/Southern District in Miami, Florida.

Kodsi added that, ""Not only does this ruling set a precedent-this is the first court in the country to decide whether a State has the discretion to interpret provisions of the Medicaid Act-it also provides pain relief for more than 5,000 indigent Medicaid recipients, particularly those living with severe nerve-related pain (neuropathy) for which there are no FDA-approved treatments.""

Miriam Harmatz, with Florida Legal Services served as lead counsel for this case. Harmatz was assisted by Kodsi as well as co-counsel Jane Perkins, National Health Law Program; Jennifer Wimberly, Legal Aid Society of Orange County Bar Association; and Shawn Boehringer, HIV/AIDS Law Project Director with the Legal Aid Service of Broward County.

Florida Legal Services, the Legal Aid Service of Broward County; and Legal Aid of Orange County Bar Association provide free legal services to low income Floridians on a variety of issues including access to health care. More information is available at www.floridalegal.org.
Carlton Fields is an AmLaw 200 firm and one of the largest law firms in the Southeast. In addition to its pro bono commitment, the firm offers a full range of legal services. Additional information is available on the firm's web site located at www.carltonfields.com.
The National Health Law Program is a non-profit law firm that works to improve access to health care for low income clients and people with disabilities. Additional information is available on NHeLP's web site located at www.healthlaw.org.

03-14-2006

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Crowell & Moring LLP

AMBULATORY SURGERY CENTERS PETITION SUPREME COURT TO OVERTURN GORDON V. LEWISTOWN
Two of the nation's leading ambulatory surgery center (ASC) associations filed an amicus brief to petition the U.S. Supreme Court to hear and overturn Gordon v. Lewistown Hospital, a case that may have a significant impact on patient care options and treatment costs nationwide. The law firm of Crowell & Moring LLP filed the brief on behalf of the American Association of Ambulatory Surgery Centers (AAASC) and Outpatient Ophthalmic Surgery Society (OOSS) expressing concern that the case may significantly affect the ability of ASCs to provide lower-cost, high-quality health care in competition with traditional hospitals.

The case arose after plaintiff Alan D. Gordon, M.D., a cataract surgeon, was stripped of his staff privileges at a Pennsylvania hospital. Prior to, and during the pendency of the hospital's disciplinary proceedings, Gordon was attempting to open an ambulatory surgery center in competition with the hospital. Gordon argued that the hospital's disciplinary actions against him based on his communications with patients and hospital-affiliated personnel were motivated by a desire to drive him out of business and prevent competition. A three-judge panel of the U.S. Court of Appeals for the Third Circuit, that included now Supreme Court Justice Samuel A. Alito, Jr., upheld dismissal of Gordon's damage claims, relying on the immunity provided to hospitals under the Health Care Quality Improvement Act (HCQIA) for peer review of physicians based on their competence and professional conduct. The court also rejected injunctive relief, asserting that at the time the hospital's action was taken Gordon was not yet a competitor of the hospital.

“The bottom line before the Supreme Court is the medical care provided to the patient -- and our country's commitment to affording beneficiaries more and better surgical treatment options. Without protecting the rights of ASCs and the physicians who operate them, patients will have fewer choices and lower quality care at higher cost,” said John J. Duggan, M.D., AAASC president and Arizona physician.

Since the 1980s, the number of ASCs has grown rapidly, doubling in the past decade and now totaling over 4,400. Patients receive surgical care administered by specially trained personnel in a more convenient and patient-friendly environment, and often at lower coinsurance payments than hospital outpatient departments. As ASCs have enjoyed increased success, the physicians who own them have sometimes become the targets of staff privileges revocations by competing hospitals. In some cases, hospitals have reportedly prohibited physicians from discussing ASC treatment options with patients.

“The Third Circuit has essentially provided hospitals a green light to discipline doctors not because of their professional competence but because of their efforts to create options for patients outside of the hospital. Physicians who desire to work at or open an ASC often face hurdles imposed by hospitals. When we protect physicians from egregious anti-competitive behavior by hospitals, we protect our patients.” said OOSS president William J. Fishkind, M.D., FACS.

Crowell & Moring partner and former director of the Federal Trade Commission's health care antitrust program Arthur N. Lerner addressed the precedent set by the Third Circuit. “The ruling seemingly permits hospitals to take anticompetitive measures against ambulatory surgery centers and their related physicians without the normal protections of the antitrust laws. The court ignored the specific exceptions that were written into the immunity law in order to protect physicians from peer-review actions that were based on the physician's competitive activities. The court also seems to only offer full antitrust protection to new competitors after they open their doors for business when in fact they need that protection before the patients start arriving,” Lerner said.

Editor's Notes:

Michael A. Romansky of Strategic Health Care is Washington Counsel for AAASC and OOSS. Visit Strategic Health Care online at http://www.strategichealthcare.net.

The American Association of Ambulatory Surgery Centers (AAASC) is a national association dedicated to advancing high quality, physician led and patient centered care in ambulatory surgery centers. With members comprising more than 1,500 ASC locations across the country, AAASC supports medical, clinical and administrative professionals who deliver efficient, high quality, and cost effective patient centered outcomes through ambulatory surgery centers. Visit AAASC online at http://www.aaasc.org.

The Outpatient Ophthalmic Surgery Society (“OOSS”) is a professional medical association representing over 1,000 ophthalmologists, nurses, and administrators who specialize in providing high-quality ophthalmic surgical procedures performed in ambulatory surgery centers. Visit OOSS online at http://www.ooss.org.

The amicus brief was prepared by Crowell & Moring attorneys Arthur N. Lerner, David Florin, Clifton S. Elgarten, and Valerie Hinko. A copy of the brief is available online at http://www.crowell.com/pdf/ambulatorycenterbrief.pdf.

Crowell & Moring LLP is a full-service law firm with more than 300 attorneys practicing in litigation, antitrust, health care, government contracts, corporate, intellectual property and more than 40 other practice areas. Crowell & Moring's Antitrust and Health Care Groups are ranked among the largest in the country. Based in Washington, D.C., the firm also has offices in Brussels, California and London.

03-14-2006

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Stinson, Morrison & Hecker, L.L.P.

KC Attorney Bruce Baty Comments on Firm\'s Use of Blended-rates Fees
As published in the January 2006 issue of the Kansas City Business Journal. Posted with permission.

More Law Firms are Offering Alternatives to Hourly Billing.

To leverage costs, today's business clients are looking to law firms to provide alternatives to the standard hourly-billing rate. Bruce Baty, co-chair of the Business Litigation Division, comments on the firm's use of blended-rate fees as an alternative to hourly billing for litigation cases.

To read the full article, click on the link above.

03-14-2006

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Stinson, Morrison & Hecker, L.L.P.

M&A Attorney John Granda Comments on Investors\' Interest in the Manufacturing Industry
As published in the February 2006 issue of the Kansas City Business Journal. Posted with permission.

Manufacturing Heats Up as Area of Interest for Investors.

John Granda, Co-Chair of the firm's M&A Group was recently quoted in the Kansas City Businss Journal about investors' interest in the manufacturing industry, a sector which deal-makers predict will rank No. 2 in M&A activity in 2006.

To read the full article, click on the link above.

03-14-2006

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Chadbourne & Parke LLP

Gretchen Werwaiss and Evgenia M. Korotkova Promoted to Counsel in New York and Moscow, Respectively
The international law firm of Chadbourne & Parke LLP announced today the naming of two attorneys to the position of counsel, effective March 1, 2006. The new counsel are Gretchen Werwaiss, resident in New York, and Evgenia M. Korotkova, resident in Moscow.

""Gretchen and Evgenia are outstanding attorneys who represent the direction in which Chadbourne is moving,"" said Charles K. O’Neill, Managing Partner. ""The Management Committee is proud to name them as counsel, and look forward to their continued valuable contributions to the Firm.""

Gretchen Werwaiss, age 35, New York office, Litigation: Ms. Werwaiss is well versed in both general commercial litigation and product liability defense. Ms. Werwaiss has extensive experience defending companies involved in class actions. She continues ongoing work as national counsel for a pharmaceutical manufacturer involved in over 1300 product liability cases, involving different products, pending in state and federal courts across the country. She also has significant experience in general commercial litigation, having been involved in such matters as the defense of multiple related federal securities actions. Ms. Werwaiss earned a B.A. from Georgetown University and a J.D., cum laude, from Georgetown University Law Center.

Evgenia M. Korotkova, age 37, Moscow office, Russia & CIS: Ms. Korotkova concentrates on general corporate matters, real estate, securities, currency regulation, licensing, banking, taxation, anti-monopoly and labor issues. Ms. Korotkova advises clients in the manufacturing, energy and telecommunications sectors. She participates in negotiations, and reviews and drafts documents in connection with various corporate transactions, including mergers and acquisitions. She has conducted numerous due diligence reviews of Russian companies in a variety of sectors, including telecommunications, oil and gas, consumer products and pharmaceuticals. Ms. Korotkova has advised clients on a wide range of issues connected with the establishment and operation of enterprises with foreign investment.

Ms. Korotkova earned her Law Diploma from Moscow State University in 1993.

About Chadbourne & Parke LLP

Chadbourne & Parke LLP, an international law firm headquartered in New York City, provides a full range of legal services, including mergers and acquisitions, securities, project finance, private equity, corporate finance, energy, communications and technology, commercial and products liability litigation, securities litigation and regulatory enforcement, special investigations and litigation, intellectual property, antitrust, domestic and international tax, insurance and reinsurance, environmental, real estate, bankruptcy and financial restructuring, employment law and ERISA, trusts and estates and government contract matters. Major geographical areas of concentration include Central and Eastern Europe, Russia and the CIS, and Latin America. The Firm has offices in New York, Washington, D.C., Los Angeles, Houston, Moscow, St. Petersburg, Kyiv, Almaty, Warsaw (through a Polish partnership), Beijing, and a multinational partnership, Chadbourne & Parke, in London.

03-14-2006

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Mintz, Levin, Cohn, Ferris, Glovsky & Popeo P.C.

Chérie Kiser to Participate on Spring 2006 Von Conference and Expo Panel
Chérie Kiser, Managing Member of Mintz Levin's Washington, DC office and Chair of the Communications Section for the firm, will participate as a panelist at the Spring 2006 Von Conference and Expo in San Jose, CA, March 14-17, 2006. The panel will discuss recent events regarding emergency issues that have fueled new activity on Capitol Hill and in the state regulatory bodies. The speakers will share their insight on the potential market impact of possible regulation and legal battles.

Chérie is the Managing Member for the Washington, DC office, a member of the Policy Committee, Chair of the Diversity Committee, and Chair of the Communications Section for the firm. She devotes her practice to telecommunications law and Internet-related transactions, representing a wide range of clients, including competitive local exchange carriers, integrated communications providers, Internet service providers, voice over Internet protocol service providers, applications service providers, satellite carriers, wireless carriers, trade associations, and large users of telecommunications and Information services.

03-14-2006

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Kaye Scholer LLP

Russ Berrie and Company, Inc. Completes Restructuring and Refinancing
On March 14, 2006 our client Russ Berrie and Company, Inc. (""RB"") restructured its domestic giftline business by transferring substantially all of its domestic giftline business assets to a newly formed subsidiary Russ U.S. Gift, Inc. In connection therewith, RB's subsidiaries, Kids Line, LLC and Sassy, Inc. which are in the infant and juvenile business, closed a $95 million senior secured credit facility with a syndicate of lenders and LaSalle Bank National Association, as agent, a portion of the proceeds of which were used to repay in full RB's existing credit facility. RB's newly-formed subsidiary, Russ Berrie U.S. Gift, Inc. and certain other domestic gift segment subsidiaries of RB entered into a $20 million senior secured revolving credit facility with LaSalle Business Credit, LLC, as lender and as agent. RB's Canadian subsidiary, Amran's Distributing Ltd. also amended its credit facility in connection with the refinancing.

RB and its subsidiaries, design, develop, and distribute a variety of innovative gift, infant and juvenile products to specialty and mass market retailers worldwide. RB operates offices, showrooms, and distribution centers all over the world and trades on the NYSE under the symbol RUS.

The corporate team was led by Joel Greenberg and Sara Adler and the finance team was led by Lauren Bernstein, Paul Robbins and Ami Cietta Duche. Johanne Remy provided valuable assistance in the transaction.

03-14-2006

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