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Tenet to Settle Some Lawsuits Brought by Uninsured Patients

Source: PR Newswire
Published: March 22, 2005

Attorneys representing uninsured and some under-insured patients said they have reached a proposed nationwide settlement with Tenet Healthcare Corp. Oringally filed in December 2002, the lawsuit claimed that patients not covered by insurance plans were charged excessive prices for prescription drugs and other medical products and services at 114 hospitals owned and operated by Tenet subsidaries in 16 different states.

"This settlement offers not only restitution to those who need it, but in the future it guarantees that uninsured patients will receive significant discounts," said Steve Berman, an attorney at Hagens Berman Sobol Shapiro, and one of the lead counsels for plaintiffs. Berman also noted that the settlement provides uninsured patients with market power equal to that of insurance companies who are able to obtain reduced rates.

Under the proposed settlement, for a period of four years Tenet has agreed to:

1. Provide financial counseling to all uninsured patients, including help in understanding and applying for governmental financial assistance and charity care programs. Subject to applicable legal requirements, Tenet will also post information on the availability of such financial assistance on hospital websites and at certain locations in its hospitals.

2. Treat uninsured patients fairly and with respect during and after treatment, and regardless of their ability to pay for the treatment they receive.

3. Offer uninsured patients reasonable payments and payment schedules. If a patient has applied for financial assistance, Tenet will not attempt to collect fees from the patient while an eligibility determination on the patient's completed application is pending.

4. Follow a uniform credit and collection policy, including, among other things, a commitment not to pursue legal action for nonpayment of bills against any patient who is unemployed or without other significant assets or to place a lien on a patient's home.

5. Disclose to uninsured patients the estimated charges for anticipated treatment, subject to applicable legal requirements.

6. Offer uninsured patients discounted pricing at rates comparable to the hospital's current managed care rates.

In addition, Tenet has agreed to provide a reimbursement mechanism for uninsured patients who received medically necessary services at any of its hospitals between June 15, 1999 and Dec. 31, 2004 - the period covered by the lawsuits - and who paid more than a certain percentage of the hospital's gross charges. The specific percentage of reimbursement varies depending on the year the patient was treated, according to the proposed settlement.

Plaintiffs' attorneys estimate that Tenet collected approximately $400 million from uninsured patients during the class period.

Tenet also has agreed to offer to discount outstanding unpaid bills for uninsured patients who were treated at its hospitals during the settlement class period, and to make a $4 million charitable contribution to a health care-related charity specified by the plaintiffs' counsel.

Going forward, Tenet will also offer uninsured patients the rate that it offers its managed care clients for a period of four years at all of Tenet's facilities.

The settlement is subject to certain conditions, including court approval. As part of the agreement, Tenet has made no admission of wrongdoing.

Read Full Story at PR Newswire

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