Providence Health System Settles Class-Action Suit Over Charity Care Practices, USA

Main Category: Public Health
Article Date: 04 Nov 2005 - 17:00 PDT

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Not-for-profit Providence Health System on Tuesday reached a settlement in a lawsuit filed over allegations that hospitals administered by the company in Oregon overcharged uninsured patients, the AP/Seattle Post-Intelligencer reports. According to the lawsuit, Providence charged uninsured patients more than patients with health insurance at seven tax-exempt, not-for-profit hospitals. Under the settlement, which requires court approval, Providence would recalculate charges to uninsured patients who visited the seven hospitals over the last four years. The settlement also would cover the next two years. The lawsuit is part of a national campaign led by Mississippi attorney Richard Scruggs, who previously won millions of dollars in lawsuits against the tobacco and asbestos industries. The campaign involves hundreds of not-for-profit hospitals in at least 27 states. Sid Backstrom, a spokesperson for the Scruggs law firm, said, "Other hospitals around the country should take a hard look at this" settlement. Providence Senior Vice President Greg Van Pelt said the company disagrees with many of the allegations in the lawsuit. "Quite frankly, the cost of litigation is so great it was in the patients' best interest and the hospital's to get this resolved, and this seemed the best way to do that," Van Pelt said (McCall, AP/Seattle Post-intelligencer, 11/1).

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