Increase in Lawsuits against Hospitals for Unfair and Illegal Charges

As the number of uninsured Americans grows, so has the number of lawsuits against hospitals nationwide. Lawyers for many claimants say that hospitals overcharge their clients; critics say the suits exploit the crisis in which 44 million people are without health care.

The lawsuits filed in state and federal courts allege that hospitals overcharge uninsured patients and use aggressive collection tactics. One suit filed recently in Nevada accused the health care provider of charging “unfair, illegal and unconscionable rates…for the medical services and goods rendered.”

A spokesperson for the American Hospital Association says, “The lawsuits we have seen to date are baseless and don’t begin to solve the very real problem of the uninsured.” Other critics say the suits are brought on by attorneys hungry for the large fees associated with class-action lawsuits.

A recent agreement struck between a healthcare company in Mississippi and its claimants was described by one champion of reform as “a model for a responsible resolution to the crisis in uninsured health care.” To avoid costly litigation, the institution agreed to provide free or discounted care to patients with incomes of up to four times the federal poverty line of $18,000 for a family of four.

“The reality is”, says a spokesman for one hospital association, “as much as hospitals’ first priority is to provide health care to their communities, they also have to operate like businesses and remain fiscally sound to continue that mission.”

SOURCE: the Philadelphia Inquirer, Sunday, August 8, 2004