Las Cruces, N.M.-based Mountain View Regional Medical Center has settled a class-action lawsuit that accused the hospital of illegally suing hundreds of patients over unpaid medical bills, the Albuquerque Journal reported Aug. 20.
In 2021, New Mexico enacted a law requiring hospitals to verify that a patient’s income status does not fall below 200% of the federal poverty line before suing or sending the bill to a collection agency. In 2022, the New Mexico Center on Law and Poverty filed a lawsuit accusing Mountain View of continuing to pursue collections from patients who fell below that line.
Under a $399,375 settlement agreement, 277 patients will receive $625 in damages, according to the report. Some patients are entitled to receive refunds for payments they had made from a $200,000 pool.
“Our hospital is committed to following all laws and regulations, including the Patient Debt Collection Protection Act, and are pleased to have resolution in this matter,” a Mountain View spokesperson told Becker’s. “We care deeply about our patients, and very consciously try to help patients manage their hospital bills and consider the unique circumstances of each individual’s situation.”
Mountain View Regional Medical Center is owned by Franklin, Tenn.-based Community Health Systems.
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