ALJDEC decisions subject to certification as final

06A-06L020-MDX-RS · Arizona Medical Board · 2007-11-27

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: November 8, 2007. APPEARANCES: Stanley S. Racz, M.D. appeared personally. The Arizona Medical Board was represented by Assistant Attorney General Dean E. Brekke. ADMINISTRATIVE LAW JUDGE: Brian Brendan Tully _____________________________________________________________________ Based upon the evidence of record, the Administrative Law Judge makes the following Findings of Fact, Conclusions of Law and Recommended Order:

FINDINGS OF FACT

1. On or about December 23, 2005, Stanley S. Racz, M.D. (“Applicant”) filed an Application for licensure with the Arizona Medical Board (“Board”). 2. In August 2006, the Board notified Applicant that it upheld its Executive Director’s decision to deny his application pursuant to A.R.S. § 32-1422. 3. Applicant timely appealed the Board’s denial of his application for licensure. 4. The Board referred Applicant’s appeal to the Office of Administrative Hearings, an independent agency, for formal hearing. 5. Applicant was the holder of License No. 12158 issued by the Board in 1980. That license expired in 2004 due to Applicant’s failure to renew the license. 6. On or about July 24, 2003, Applicant entered into a Consent Agreement and Order for Probation and Practice Agreement (“Consent Agreement and Order”) in Investigation Case No. MD-03-0202, the terms of which are incorporated herein by reference. 7. The Consent Agreement and Order concluded that Applicant violated the provisions of A.R.S. § 32-1401(24)(q), and that he was “mentally and/or physically unable to safely engage in the practice of medicine under A.R.S. § 32-1451(A) and (E)(3).” 8. The Consent Agreement and Order placed Applicant’s License No. 12158 on probation for five years, subject to the following conditions:

a. Dr. Racz shall not practice clinical or administrative medicine or any medicine involving direct patient care, and is prohibited from prescribing any form of treatment including prescription medications, until he applies to the Board and affirmatively receives the Board’s approval to return to practice. Dr. Racz agrees to any combination of Board staff approved physical examinations, psychological or psychiatric evaluations, or successful passage of the Special Purpose Licensing Examination or other competency examinations/evaluations or interviews the Board or its staff finds necessary to assist it in determining his ability to safely and competently return to the active practice of medicine. b. Dr. Racz may petition the Board on September 12, 2003 or thereafter, or he must petition the Board at the conclusion of the fifth year of the Consent Agreement’s effective date to (i) return to the practice of medicine, under whatever restrictions or conditions the Board deems appropriate, or (ii) surrender his medical license.

9. License No. 12158 was subject to the terms and conditions of the Consent Agreement and Order at the time the license expired for lack of renewal. Applicant had not petitioned the Board for reinstatement to return to the practice of allopathic medicine at the time the license expired. 10. On or about May 24, 2003, Applicant entered Sierra Tucson for evaluation. He was later enrolled in a 30 day inpatient treatment program at that facility. 11. On June 13, 2003, Applicant was discharged from Sierra Tucson after the facility’s staff determined that Applicant had reached the maximum benefit he could obtain being treated at the facility. Applicant did not complete the 30 day inpatient program. 12. Kathleen Muller, the Board’s manager of the Physician Health Program (“PHP”) conducted an investigation of Applicant’s application for licensure. Ms. Muller issued a PHP Report dated April 6, 2006, which summarized the results of her investigation. 13. Ms. Muller’s PHP Report noted Sierra Tucson’s discharge diagnoses for Applicant on June 13, 2003, which were the following:

Cognitive disorder secondary to ischemic white matter changes, Schizotypal personality disorder, hypertension, severe psychosocial stressors, including his cognitive impairment, occupational problems, including medical license suspension, family or origin issues, marital problems, grief and loss issues.

14. On or about May 21, 2004, James P. Sullivan, Ph.D. performed “a brief neuropsychological assessment” of Applicant. In a letter dated May 26 2004 to Francisco R. Valdivia, M.D., Dr. Sullivan opined that Applicant showed improvements since his discharge from Sierra Tucson. Dr. Sullivan recommended “that comprehensive neuropsychological assessment be deferred until such time that [Applicant] wishes to pursue [Board] review” pursuant to the Consent Agreement and Order. 15. On or about February 27, 2006, David G. Greenberg, M.D., the Board’s addiction medicine consultant recommended the following concerning Applicant’s pending application:

1) We need proof of Dr. Racz having successfully completed a Board approved chemical dependency treatment program. 2) We will need the doctor to subject himself to an acceptable battery of neuropsychiatric testing performed by a certified testing psychologist that staff approves, so as to evaluate any improvement of his past cognitive deficiencies. 3) After receiving the above information, I would recommend that we conduct a licensing investigative interview together with licensing personnel.

16. Applicant failed to present credible proof that his neurological deficits and sobriety have been sufficiently addressed to permit him to safely return to the active practice of medicine. Applicant has not complied with the recommendations of Dr. Sullivan and Dr. Greenberg. 17. At the hearing, Applicant gave testimony discounting past alcohol breath complaints against him, which were addressed in the Consent Agreement and Order. 18. On March 3, 2006, Applicant took the Special Purpose Examination. He received a passing score of 83. 19. On or about May 8, 2006, Challenger Corporation, in joint sponsorship with the University of Colorado School of Medicine, awarded Applicant a Certificate of CME Completion for successful completion of 250 hours of CME activity from Med-Challenger for Internists.

CONCLUSIONS OF LAW

1. The Board has subject matter jurisdiction in this appeal. 2. Pursuant to A.R.S. § 41-1092.07(G)(1), Applicant has the burden of proof in this appeal. The standard of proof is preponderance of the evidence. A.A.C. 2-19-119(A). 3. A.R.S § 32-1422(A)(3) requires that an applicant for licensure to practice medicine in Arizona “[h]ave the physical and mental capability to safely engage in the practice of medicine.” The Administrative Law Judge concludes that Applicant failed to sustain his burden of complying with that statutory requirement. Applicant failed to present credible evidence that his neurological deficits and sobriety have been resolved to the point where he could safely practice allopathic medicine if granted a license. 4. Based upon the evidence of record, Applicant’s appeal should be dismissed. 5. The evidence of record supports the Board’s denial of Applicant’s application for licensure.

RECOMMENDED ORDER

Applicant’s appeal in Case No. MD-06-L020A shall be dismissed on the effective date of the Order entered in this matter. Done this day, November 27, 2007

______________________________________ Brian Brendan Tully Administrative Law Judge

Original transmitted by mail this ____ day of ____________, 2007, to:

Arizona Medical Board ATTN: Legal Coordinator 9545 East Doubletree Ranch Road Scottsdale, AZ 85258

By ___________________________ -----------------------

Office of Administrative Hearings 1400 West Washington, Suite 101 Phoenix, Arizona 85007 (602) 542-9826