New Mexico hospital sued over alleged illegal debt collections

Las Cruces, N.M.-based Mountain View Regional Medical Center is facing a class action lawsuit alleging the hospital sued hundreds of patients over unpaid medical bills who should have been protected by a state law, NM Political Report reported Oct. 12. 

Advertisement

A state law that went into effect last year requires hospitals to verify that a patient’s income status doesn’t fall below 200 percent of the federal poverty line before suing or sending the bill to a collection agency, according to the report. The lawsuit, filed by the New Mexico Center on Law and Poverty, alleges Mountain View has continued to pursue collection actions against patients who fall below that line. 

A hospital spokesperson told the news outlet that administrators “previously implemented policies and procedures to ensure compliance with the law.”

“We are not aware of any departure from those policies and procedures,” the spokesperson told NM Political Report. “We will review the allegations in the lawsuit and work with the New Mexico Center on Law and Poverty if the review identifies mistakes or departures from the hospital’s policies and procedures.”

Mountain View is owned by Franklin, Tenn.-based private hospital network Community Health Systems, according to the report. A Community Health Systems spokesperson did not immediately respond to a request for comment from NM Political Report

Faber & Brand, a law firm that Mountain View hires to pursue legal action against those with unpaid medical bills, was also named in the lawsuit, according to the report.  It did not immediately respond to a request for comment from NM Political Report

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Advertisement

Next Up in Financial Management

Advertisement

Comments are closed.