Guest
06-21-2004, 07:39 AM
NON-PROFIT HOSPITALS: Faces Several Lawsuits Over Charity Care
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Some of the country's largest nonprofit hospitals faces several class
actions, alleging that they distorted the extent of their
charity care while using punishing tactics to obtain payments from
uninsured
patients, the dailycamera.com reports.
Mississippi attorney Richard Scruggs filed the suit, seeking monetary
damages over the hospital's alleged failure to comply
with the agreements between the medical facilities and the federal,
state
and county governments. The suit primarily alleges that the
hospitals,
located in eight states, failed to provide charitable medical care to
poor
patients in exchange for enjoying tax exemptions. Named in the suit
are
hospitals in:
(1) Illinois,
(2) Minnesota,
(3) Ohio,
(4) Texas,
(5) Georgia,
(6) Alabama,
(7) Florida and
(8) Tennessee
The suit alleges that these hospitals used "creative" accounting
practices
to "grossly distort the small amount of charity care
they provide to uninsured patients." The lawsuits, filed on behalf
of
uninsured patients of the hospitals, also allege that in addition to
amassing millions from savings on unpaid taxes, the hospitals benefit
from
income from their "for profit" operations.
"Instead, the hospitals charge the uninsured 'sticker' prices for
health
care, an amount higher than any other patient group,
and then, when the uninsured can't pay, harass the uninsured through,
among
other tactics, aggressive collection efforts such
as garnishment of wages and bank accounts, seizures of homes, and
personal
bankruptcies," Mr. Scruggs told dailycamera.com.
Alicia Mitchell, a spokeswoman for the American Hospital Association,
told
dailycamera.com that her office had just
received a copy of one of the suits and that it was being reviewed.
"But from our view, this lawsuit is baseless and misdirected," she
said.
"It diverts focus from the real issue of how we as a
nation are going to extend health coverage to all Americans." She
added that
she was concerned that the suit would consume
already limited health care resources that hospitals need to continue
their
daily work of caring for uninsured and all other
patients in their communities."
Mr. Scruggs said the complaint has been brought by a group of lawyers
from
law firms across the country, many of whom have worked together in the
tobacco litigation cases. He said additional, similar lawsuits were
in the
works.
--------------------------------------------------------------
Some of the country's largest nonprofit hospitals faces several class
actions, alleging that they distorted the extent of their
charity care while using punishing tactics to obtain payments from
uninsured
patients, the dailycamera.com reports.
Mississippi attorney Richard Scruggs filed the suit, seeking monetary
damages over the hospital's alleged failure to comply
with the agreements between the medical facilities and the federal,
state
and county governments. The suit primarily alleges that the
hospitals,
located in eight states, failed to provide charitable medical care to
poor
patients in exchange for enjoying tax exemptions. Named in the suit
are
hospitals in:
(1) Illinois,
(2) Minnesota,
(3) Ohio,
(4) Texas,
(5) Georgia,
(6) Alabama,
(7) Florida and
(8) Tennessee
The suit alleges that these hospitals used "creative" accounting
practices
to "grossly distort the small amount of charity care
they provide to uninsured patients." The lawsuits, filed on behalf
of
uninsured patients of the hospitals, also allege that in addition to
amassing millions from savings on unpaid taxes, the hospitals benefit
from
income from their "for profit" operations.
"Instead, the hospitals charge the uninsured 'sticker' prices for
health
care, an amount higher than any other patient group,
and then, when the uninsured can't pay, harass the uninsured through,
among
other tactics, aggressive collection efforts such
as garnishment of wages and bank accounts, seizures of homes, and
personal
bankruptcies," Mr. Scruggs told dailycamera.com.
Alicia Mitchell, a spokeswoman for the American Hospital Association,
told
dailycamera.com that her office had just
received a copy of one of the suits and that it was being reviewed.
"But from our view, this lawsuit is baseless and misdirected," she
said.
"It diverts focus from the real issue of how we as a
nation are going to extend health coverage to all Americans." She
added that
she was concerned that the suit would consume
already limited health care resources that hospitals need to continue
their
daily work of caring for uninsured and all other
patients in their communities."
Mr. Scruggs said the complaint has been brought by a group of lawyers
from
law firms across the country, many of whom have worked together in the
tobacco litigation cases. He said additional, similar lawsuits were
in the
works.
