Attorney General Martha Coakley Reaches Settlement With Boston Medical Center Regarding Improper Marketing Practices, Boston, USA

Main Category: Medical Malpractice / Litigation
Article Date: 20 Jun 2008 - 4:00 PDT

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Attorney General Martha Coakley's Office obtained a consent judgment in Suffolk Superior Court against Boston Medical Center Corporation ("BMC") and Boston Medical Center Health Plan, Inc. ("BMCHP") resolving allegations that BMC and BMCHP improperly used protected health information to conduct deceptive marketing of its health plan. Under the terms of the consent judgment, BMC and BMCHP will pay $562,000 to the Commonwealth, including $430,000 to Mass Health, $112,000 to the Attorney General's Local Consumer Aid Fund, and $20,000 in attorneys' fees.

"As we expand health coverage to the uninsured, it is particularly important that hospitals and insurers do not overlook state consumer and patient privacy laws when marketing their health plans," Attorney General Coakley said. "We will continue to work with the Connector and Mass Health to safeguard patients' rights."

According to the consent judgment, filed in Suffolk Superior Court yesterday, BMC and BMCHP engaged in unfair and deceptive marketing in violation of various contracts and state consumer protection laws in November 2007. The complaint alleges that BMC sent incorrect and misleading letters to approximately 1,200 Neighborhood Health Plan (NHP) members and 1,400 Network Health members and also allegedly used the protected health information of patients enrolled in NHP or Network Health to market BMCHP, falsely stating that it was necessary for members to switch to BMCHP to "continue getting care at Boston Medical Center."

Prior to the entry of the consent judgment, BMC sent correction letters to consumers who were sent the misleading marketing letter. Under the consent judgment, BMC must also engage an independent third-party firm to review and audit its compliance with federal and state consumer protection standards and keep the Attorney General's Office informed of any corrective action.

This matter was handled by Assistant Attorney General Tom O'Brien and Division Chief Quentin Palfrey of Attorney General Coakley's Health Care Division.

Office of Attorney General Martha Coakley