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Judge approves class-action settlement between Tenet Healthcare, uninsured patients

Patient Financial Services Weekly Advisor, August 12, 2005

A Los Angeles judge approved an agreement by Tenet Healthcare Corp. to settle a class-action lawsuit accusing its hospitals of overcharging uninsured and underinsured patients, the Associated Press (AP) reported August 9.

The settlement covers plaintiffs in California and eight other states-Texas, South Carolina, Tennessee, Pennsylvania, Missouri, Florida, Alabama, and Louisiana.

Those who received treatment at Tenet-run hospitals between June 15, 1999, and December 31, 2004, will be eligible for restitution, said attorney Steve Berman, who represented the plaintiffs, AP reported.

Dallas-based Tenet also agreed not to charge uninsured patients a managed care rate at any of the hospitals it runs in 19 states for a four-year period.

Tenet and its subsidiaries did not acknowledge any wrongdoing, AP reported.

Some 32,000 claims already have been submitted in the case.

Berman said the number of claims may reach 50,000 by January 11, the deadline for filing a restitution claim. Instructions on how to file a claim have been sent to some 2.5 million Tenet patients, he said.

Under the agreement, which was first disclosed in March, Tenet agreed to provide financial counseling to uninsured patients, including help in understanding and applying for governmental financial assistance and charity care programs, AP reported.

Tenet said it would follow a uniform credit and collection policy, including a commitment not to pursue legal action for nonpayment of bills against unemployed patients or to place a lien on a patient's home.

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