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Allstate Insurance v. Orthopedic Evaluations, Inc.

Citations: 304 N.J. Super. 278; 700 A.2d 372; 1997 N.J. Super. LEXIS 373

Court: New Jersey Superior Court Appellate Division; September 12, 1997; New Jersey; State Appellate Court

Narrative Opinion Summary

The case involves Orthopedic Evaluations, Inc. (OEI), which challenged the regulatory oversight of its operations by the State Board of Medical Examiners, arguing instead for jurisdiction under the State Board of Chiropractic Examiners. The primary legal issue was whether the regulatory framework, particularly N.J.A.C. 13:35-2.5, limited the Medical Board's authority over services prescribed by chiropractic doctors. The Supreme Court denied OEI’s motion to expand the record but directed the appellate court to evaluate OEI's claims. Ultimately, the court concluded that the Chiropractic Board Act restricts the Chiropractic Board's jurisdiction to chiropractic practitioners only, without encroaching upon the Medical Board's regulation of allied health services. The court underscored that OEI's services, predominantly allied health in nature, remain within the Medical Board's domain. Consequently, the plaintiff was affirmed entitlement to the declaratory judgment sought, reinforcing the broad regulatory authority of the Board of Medical Examiners over allied health services, regardless of the prescribing professionals.

Legal Issues Addressed

Jurisdiction over Allied Health Services

Application: The court affirmed that allied health services remain under the purview of the Board of Medical Examiners unless explicitly limited by statute.

Reasoning: The court emphasized that OEI, its principals, and employees were not engaged in chiropractic practice but rather in allied health services, thus remaining subject to the Medical Board's regulatory authority unless explicitly limited by statute.

Regulatory Authority of Professional Boards

Application: The court determined that the Board of Medical Examiners holds regulatory authority over allied health services provided by Orthopedic Evaluations, Inc., despite the involvement of chiropractic prescriptions.

Reasoning: The court rejected this argument, stating that the Chiropractic Board Act’s provisions clearly limit the Board of Chiropractic Examiners to regulating only chiropractic practitioners, without diminishing the Medical Board's authority over allied professions.

Scope of Chiropractic Board Act

Application: The court clarified that the Chiropractic Board Act is limited to regulating practitioners of chiropractic and does not extend to those providing allied health services.

Reasoning: The court noted that OEI argued that a significant portion of its services—approximately 89%—were performed at the prescription of chiropractic doctors, implying that the Chiropractic Board Act limited the jurisdiction of the Board of Medical Examiners.