(2) The Authority may arrange for the provision of training and information to medical assessors to promote accurate and consistent medical assessments under this Part."
The significance of medical assessments
20 While s 60(1) provides that a medical dispute "may" be referred for assessment, referral is commonplace. Proceedings in respect of a motor accident claim may not be commenced unless the claim has been assessed by a claims assessor pursuant to Pt 4.4 of the Act or a certificate of exemption has been issued (s 108). A claims assessor can refer a medical dispute for assessment (s 60(1)), and there is often referral by the parties to a medical dispute or by a claims assessor. Further, there is a threshold degree of permanent impairment before damages for non-economic loss may be awarded (s 131), and if there is dispute about whether the degree of permanent impairment is sufficient for an award the court may not award any such damages unless the degree of permanent impairment has been assessed by a medical assessor under Pt 3.4 (s 132). There is often a practical necessity for medical assessment.
21 Medical assessments are thus an important part of arriving at the claimant's entitlement to damages. Their importance is magnified by their status as conclusive evidence in some respects, including whether the degree of permanent impairment exceeds the threshold, (s 61(2)) and as evidence in other respects (s 61(3)). The court or a claims assessor may refer a matter for further assessment (s 62), but that prospect does not detract from the significance in the ordinary case of a medical assessment.
22 Part 3.4 seeks to provide extra-curial resolution of medical disputes but, recognising the significance of a medical assessment, provides through s 63 that a dissatisfied party can obtain review of the medical assessment of a single medical assessor.
Construction of s 63
23 Section 63 only applies when there has been a medical assessment by a single medical assessor; it does not apply if, as ss 60(4) and 61(1) permit, there has been assessment by more than one medical assessor. The occasions for a fresh medical assessment presented by ss 61(4) and (5), s 61(8) and s 62 are limited. The plain purpose of s 63 is that the collegiate professional expertise of three or more medical assessors should be applied in the review, resulting in an assessment which is more likely to be correct and to be accepted by the parties to the medical dispute.
24 A key concept in Pt 3.4 is that of a matter. A medical assessment is an assessment of a medical disagreement about any of the "matters" described in s 58. All the matters are medical in nature; there is possible enlargement so far as the degree of impairment of earning capacity requires knowledge of workplace requirements, but medical professionals frequently express opinions on impairment of earning capacity. The certificate given by a medical assessor is "as to the matters referred for assessment" (s 61(1)). The concept is continued in s 61, and in s 62, with reference both to a "matter certified" and to a "matter referred" and variants on that language. The certificate must set out reasons for the medical assessor's findings "as to any matter certified in the certificate in respect of which the certificate is conclusive evidence" (s 61(8)).
25 Under s 63 the party applying in accordance with s 63(1) applies for referral of the medical assessment, not for referral of part of the medical assessment. Section 63(2) also speaks of referral of a medical assessment, and of grounds that the medical assessment was incorrect in a material respect, not that part of the medical assessment was incorrect. Section 63(4) returns to the key concept, providing that the result of the review panel's review is either confirmation of the certificate of assessment or revocation of the medical assessor's certificate and issue of a new certificate "as to the matters concerned". "The matters concerned" picks up the matters in s 58. It must mean the matters referred for assessment as a whole. The medical assessor's certificate is revoked, s 63(5) provides that s 61 applies to the new certificate, and so the new certificate must entirely replace the medical assessor's certificate. The new certificate must therefore express the review panel's own assessment of the matter or matters referred for assessment.
26 To this point, the review panel has power to carry out whatever assessment is necessary in order to come to its own conclusions upon the matter or matters referred for assessment. Are its powers confined by s 63(2) and (3)? Those provisions implicitly require a statement of grounds of incorrectness in a material respect, which the proper officer can consider in order to be satisfied that there is reasonable cause to suspect that the medical assessment was incorrect in a material respect "having regard to the particulars set out in the application" (s 63(3)). Diverging from the language of s 63(1), which speaks of reference of a medical assessment, the proper officer arranges for "any such application" to be referred to a review panel, that is, the application itself. Does reference of the application carry with it only the grounds of incorrectness in a material respect, and confine the review panel's assessment to that incorrectness?
27 In my opinion, that is not the proper construction of s 63. The referred application is still an application to refer the medical assessment. There is inelegance in referring to the review panel an application to refer a medical assessment to the review panel, but the review panel plainly does more than decide whether it will accede to the application to refer the medical assessment to it. What the review panel receives is a reference to it of the medical assessment. Section 63(2) and (3) do not cut this down. Section 63(3) provides a filter mechanism. Section 63(2) in terms limits the grounds for making an application, although no doubt its effect is that a review panel can not issue a new certificate if it considers that any incorrectness in the medical assessment was not in a material respect, but it does not otherwise affect the performance by the review panel of its task of either confirming the medical assessor's certificate or issuing a new certificate expressing its own assessment of the matter or matters referred for assessment.
28 The review panel is in my opinion not limited to the grounds for incorrectness in a material respect particularised in the application for referral of a medical assessment. There are sound reasons why this construction of s 63 should be preferred to one by which the review panel can not go beyond those grounds.
29 I have described the significance of medical assessments. A medical assessment can have a profound effect on a claimant's recovery, to the perceived detriment of the claimant or the insurer. The legislature has provided for review by a review panel so that a dissatisfied party to a medical dispute can seek redress, as is appropriate given the significance. The dissatisfied party may have particularised the grounds for incorrectness in a material respect, but it would be harsh if the review panel did not have power to entertain altered, added or substituted grounds. (The Guidelines, to which medical assessments are procedurally subject (s 65), provide that application under s 63(1) must be made within thirty days of receipt of the medical assessor's certificate (para 10.1), without ability to extend time (para 10.3)). Ignorance or mistake should not be penalised, and there can be second thoughts; the significance of a medical assessment is such that restrictions on getting it right should not readily be found to have been intended by the legislature.
30 Perhaps of greater significance is the nature of the review panel. The members of a review panel are medical practitioners or other suitably qualified persons. The review panel is to be convened by the proper officer "having regard to the nature of the injury and any continuing disabilities [and] the nature of the dispute" (Guidelines para 10.14.1), underlining that it is to apply the expertise of medical professionals to its review of a medical assessment initially made by a medical professional. The review panel must confirm the certificate of assessment or issue a new certificate replacing it, and as I have earlier explained the new certificate must deal with the matter or matters referred for assessment as a whole and express the appeal panel's assessment of those matters. It would not be a sensible operation of Pt 3.4, and would be at odds with use of the expertise of the medical professionals in extra-curial resolution of medical disputes, that the review panel could not go beyond the particularised incorrectness in a material respect. In particular, it would be wholly inappropriate if the review panel had to confirm a certificate or issue a new certificate despite the professional opinion of its members that the certificate was incorrect in a different material respect.
31 There is a broadly similar scheme for medical assessments in Pt 7 of the Workplace Injury Management and Workers Compensation Act 1998 ("the WIM Act"). In Siddik v WorkCover Authority of New South Wales [2008] NSWCA 116 it was held that in an appeal to an appeal panel against a medical assessment under s 328 of the WIM Act, the appeal panel could consider grounds other than those permitted by the Registrar to proceed under a filter mechanism akin to that in s 63(3) of the Act. The reasons of McColl JA, with whom Mason P agreed, included -
"98 Further, while the express limitations on opening the gate to an appeal are suggestive of an appeal limited to the grounds identified by the appellant, there is much to be said for the view that when used in the context of the review of an MAC by a panel including two specialists, that they should be entitled to determine "the true and correct view": Chemler (at [30]). The purpose of setting up a panel with experts is to enable it to resolve questions within its expertise: Kalil v Bray [1977] 1 NSWLR 256 (at 262) per Street CJ (Moffitt P and Glass JA agreeing).
99 Such an approach recognises the importance of the medical assessment in the process of determining an injured worker's rights to, and an employer's obligation to pay, workers' compensation and/or damages. Although the legislature has deliberately separated determination of those issues from the curial decision-maker, it would be a curious to find it intended that the Appeal Panel could not cure an error in a conclusive certificate merely because the parties had not identified it, with the result that a court could be required to determine the parties' rights on the basis of what, in the Appeal Panel's view, was an erroneous MAC. The inclusion of two specialists on the Appeal Panel must have been intended, in part, to permit them to bring their expertise to bear on the contents of the MAC."
32 The language of the WIM Act is different from that of the Act, although the concept of a matter also plays a key part. The analysis of its provisions did not focus on that concept, including in my own reasons, but the view I take of s 63 is consistent with that taken of s 327 and with her Honour's reasons paying regard to the nature of the reviewing tribunal.
33 The reasons of James J discussed at some length remarks concerning review of a medical assessment under the WIM Act in Campbelltown City Council v Vegan [2006] NSWCA 284 and references to those remarks in subsequent decisions. What was said in those cases is now subject to the later decisions in Pitsonis v Registrar of the Workers Compensation Commission [2008] NSWCA 88 and Siddik v WorkCover Authority of New South Wales. His Honour considered that differences between the Act and the WIM Act rendered the remarks inapplicable, and came to his decision essentially because s 63 did not provide that the review panel was to determine whether the medical assessment was incorrect in the material respect of which the proper officer was satisfied and the expression "as to the matters concerned" referred back to the matters in s 58. In my opinion, his Honour came to the correct decision.
34 It should be said that the review panel put the appellant on notice that it would conduct a fresh assessment of the medical dispute, and there was no question of denial of procedural fairness such as arose in Siddik v WorkCover Authority of New South Wales.
Failure to exercise a discretion?
35 The review panel's reasons for its findings which accompanied the new certificate include the statement, "The panel noted that all aspects of the assessment under review are to be considered afresh by the review panel". This may have reflected para 10.17.1 of the Guidelines, which as part of a prescription of what a review panel is to do provides that it is to "consider afresh all aspects of the assessment under review".
36 The appellant submitted that, if the review panel was entitled to go beyond the particularised grounds of incorrectness in a material respect, it was nonetheless not obliged to do so; and that the review panel had erred in that it had considered itself obliged to consider afresh all aspects of the medical assessment and had not exercised a discretion in relation to the extent of its review. The appellant said that so far as para 10.17.1 of the Guidelines prescribed that the review panel was to conduct a full fresh assessment it was invalid, because s 63 of the Act did not impose such an obligation and the Guidelines could not affect the review panel's task as found in s 63.
37 It is likely that the review panel had para 10.17.1 of the Guidelines in mind. The immediately following parts of the reasons were concerned with re-examination of the claimant and additional information, topics the subject of paras 10.17.2 and 10.17.3. It does not follow that the review panel erred in failing to exercise a discretion.
38 I do not think it correct to divide a review under s 63 into what the review panel is obliged to review and what it has a discretion to review. The review panel has the one task, to review the medical assessment referred to it and either confirm the medical assessor's certificate or revoke it and issue a new certificate. In the manner earlier explained, the members of the appeal panel bring their expertise to that task, and the confirmation or the new certificate embodies their professional opinion as to the matters referred for assessment in whole. In order to come to its decision to confirm the medical assessor's certificate or revoke it and issue a new certificate the review panel must give consideration to the matters referred for assessment in whole. The consideration as to some aspects of the matters may be brief if there is a discrete particularised incorrectness in a material respect and no other incorrectness in a material respect is apparent to the professional gaze of the members of the review panel, and depending on perceived occasion to go further the review panel may then focus on the particularised incorrectness in a material respect. If that occurs, it is not failure in an obligation or the exercise of a discretion. It is the exercise of professional judgment.
39 There was no error in the review panel's approach that it should "consider afresh all aspects of the assessment under review". Whether the fresh consideration gave cause to question the medical assessor's assessment for incorrectness in relation to the left knee injury was a matter for its professional judgment, and did not involve the exercise of a discretion. The review panel said in its reasons that for the left knee the medical assessor had assessed the 8 per cent whole person impairment on the impermissible basis of arthroscopy findings, and made its own assessment based on x-ray films. The impermissible basis is the kind of incorrectness in a material respect which would have been apparent to the review panel, leading to its reassessment.
Orders
40 I propose the orders -