N.C. Baptist Hospital Wants Employees to Cover Tax Bill From $4M Settlement

N.C. Baptist Hospital in Winston-Salem, N.C., wants roughly 15,000 current and former employees benefitting from a federal class-action lawsuit to cover the hospital’s tax bill for the $4.07 million settlement it must pay, according to a Winston-Salem Journal report.

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On Feb. 24, a judge approved a final settlement of $5.38 million, with about $4.07 million remaining once attorney fees are paid. The settlement stems from court findings that Baptist and certain affiliates’ group health plans required employees to pay more in fees than other corporate clients.

The exact amount of money Baptist wants for its tax liability has not been specified, but attorneys for the class-action suit have written a filing in opposition to the request, which they say is Baptist’s attempt to change the terms of the settlement. They say the tax liability is the hospital’s “obligation to the IRS as an employer,” according to the report.

Baptist has agreed to respond to that filing by the end of the week, according to the report. Settlement money is scheduled to be distributed to the class-action participants by April 24.

More Articles on Hospitals and Settlements:

Rhode Island Hospital Settles Allegations of Medicare, Medicaid Fraud
Henry Ford Health Settles Alleged Violation of Americans With Disabilities Act
Cayuga Medical Center in NY Settles Alleged Stark Law Violations

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