REFUNDS ORDERED IN HOSPITAL EPIDURAL PROBE.

Byline: Yvette Cabrera Daily News Staff Writer

The state Department of Health Services ordered Northridge Hospital Medical Center to pay refunds to as many as 300 Medi-Cal patients who paid cash for epidural anesthesia, state officials said Friday.

The department's demand - made as part of its investigation of the hospital anesthesiologists' former practice of requiring Medi-Cal patients to pay cash for anesthesia during childbirth - could cost the hospital $40,000 to $120,000 in reimbursements.

The hospital, which has yet to make an accurate count, estimates that 100 to 300 patients treated from 1993 to August 1997 are eligible for the $400 refund, said hospital spokesman John Lockhart.

``The hospital has actually been discussing how to do the refund,'' Lockhart said. ``This just stimulates them to move up the date.''

Should the hospital fail to refund all the payments, it could face termination of its Medi-Cal contract, said Ken August, spokesman for the Department of Health Services.

Requiring epidural payment from Medi-Cal patients is a violation of the hospital's provider contract and a violation of the state welfare and institutions code, according to August.

The department's investigation was prompted by a lawsuit filed by Medi-Cal patient Ozzie Chavez, who claims that anesthesiologist Lori Berke refused to administer an epidural block last July despite Chavez's offer to pay by check or credit card.

Anesthesiologists at the hospital thought Medi-Cal did not reimburse the procedure, according to hospital president and CEO Roger Seaver, who told reporters last week that the prepayment policy ended in August 1997.

Epidurals are fully covered by Medi-Cal, according to August.

Although the anesthesiologists, who are under contract to the hospital, collected the payments, the hospital will refund the money immediately and hopes to be reimbursed by the anesthesiologists at a later date, Lockhart said.

The Department of Health Services also demanded the hospital:

Provide evidence on when its epidural payment process began and ended.

Prove that the hospital is in compliance with its provider contract and state welfare codes.

Contact Medi-Cal patients who gave birth at the hospital to determine if the patient was denied an epidural or requested to pay for an epidural.