Revenue Cycle

Judge dismisses charity care lawsuit against North Mississippi Health Services

Patient Financial Services Weekly Advisor, June 3, 2005

A federal judge dismissed a lawsuit filed against North Mississippi Health Services (NMHS) by a plaintiffs' attorneys group led by lawyer Richard Scruggs, according to the Associated Press (AP).

The lawsuits claim the hospitals have failed to fulfill their charitable mission by failing to provide discounted healthcare to uninsured patients and that uninsured patients paid higher rates than those with insurance.

U.S. District Judge Michael P. Mills issued the order May 31, in which he said he doesn't have jurisdiction to hear the case.

In August, NMHS entered a memorandum of understanding after class-action lawsuits had been filed against 40 hospitals and health systems across the country. Many suits have been similarly dismissed.

NMHS agreed to the memorandum of understanding as a framework to develop a settlement to avoid the distraction and cost associated with a lawsuit, AP reported.

NMHS is the parent corporation for North Mississippi Medical Center, a 650-bed hospital in Tupelo and five smaller community hospitals in Northeast Mississippi and Northwest Alabama.

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