Work comp case. (Politics).

Los Angeles is getting on the workers' compensation reform bandwagon.

Several weeks back, L.A. Mayor James Hahn joined the L.A. Area Chamber of Commerce in its drive to reform workers' comp, urging businesses in the city to write Insurance Commissioner John Garamendi about their workers' comp troubles.

Then, earlier this month, the City of Los Angeles weighed in on a key workers' comp court case up north. The case involved an injured worker at a floor-covering manufacturer who sought treatment at an outpatient clinic in Los Gatos. The Alpine Surgery Centers charged $9,700 for the cost of surgery, but the company's insurer, Golden Eagle Insurance Co. disputed the charge and agreed to pay only the "reasonable rate" for the Los Gatos area of $1,800.

It represents the first attempt by an insurer to rein in medical fees charged by outpatient surgery centers. Not coincidentally, this very same issue is now being taken up by the state Legislature under a bill authored by Sen. Richard Alarcon, D-Van Nuys.

Last week, L.A. City Attorney Rocky Delgadillo filed friend of the court brief supporting the insurance company.

"Every businessperson knows that workers' comp costs are spiraling out of control:' Delgadillo said. "Those costs are also hitting the city, which is budgeted to spend $142 million in the next fiscal year (starting July 1) on workers' comp. That's a $30 million increase over last year and double 1997 levels. What's more, nearly 60 percent of all the money the city pays in workers' comp goes to these outpatient clinics, which we believe is an excessive level."

Delgadillo added that the city also supports the Alarcon bill. "Look, sometimes bills that appear promising don't pass. "So we want to make sure that, if it doesn't pass, we'll at least have a court decision that allows us to finally clamp down on these out-of-control medical costs."