High Hospital Bill Leads to Class Action Suit Against Tenet
Uninsured hospital patients routinely pay more for medical services than insured patients, charges that are "unfair, illegal and unconscionable," according to a lawsuit to be filed in circuit court in Broward County, Fla.
Philadelphia PA (PRWEB) September 19, 2003
Uninsured hospital patients routinely pay more for medical services than insured patients, charges that are "unfair, illegal and unconscionable," according to a lawsuit to be filed in circuit court in Broward County, Fla.
The proposed class action lawsuit charges Tenet Healthcare Corp. with charging higher rates to patients who have no insurance coverage than to those with coverage. It claims Tenet rates are twice the industry norm and higher than the actual cost of procedures. This practice violates the Florida Deceptive and Unfair Trade Practices Act (FDUTPA) and the Florida common law of unfair competition.
The case was recently filed following a hospital visit by the named plaintiff, James Garcia. The Miami resident was injured in a fall. After five hours in the emergency room Garcia received a $7,000 hospital bill, including a $1,400 charge for questionable blood and drug screenings. Had he been covered by health insurance, the hospital in most cases would accept less than one-fifth (approximately $1,500) in full payment of the bill.
The bill and lawsuit highlight the discrepancy between what insured and uninsured patients are charged for hospital care. Like some 43 million Americans, Garcia has no health insurance. The case was filed by Freedland, Glassman, Farmer & Sheller of Weston, Fla., Sheller, Ludwig & Badey and Hoffman & Edelson, of Philadelphia, and Hagans Berman of Boston, MA.
"This case is symptomatic of the epidemic that has come about from big corporate control over healthcare," said Jonathan Shub of Sheller, Ludwig & Badey. "If you happen to be one of the fast-shrinking majority of Americans with major medical insurance, your insurance company is charged one set of rates. If you don't have insurance, you personally pay a much higher rate."
The problem stems from several issues. First, insurance companies are able to negotiate deep service and pricing discounts by promising to steer subscribers to facilities on their plans. Also, patients upon admission often are made to sign Conditions of Service or admission agreements acknowledging they will pay a facility's "regular" rates for service. Many patients are signing such documents in pain or under duress. Moreover, when patients have not paid, Tenet has used questionable collection methods, including making negative credit reports.
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