Confidentiality of hospital billing procedure questioned in Indiana Supreme Court

The Indiana Supreme Court heard oral arguments from Fort Wayne, Ind.-based Parkview Hospital lawyers on withholding information about discounts the hospital provides to insured patients, according to The Journal Gazette.

Former patient Thomas Frost sued the hospital after receiving a bill totaling $625,000 for a month-long stay after being injured in a truck-motorcycle accident in October 2013. At the time of the accident, Mr. Frost did not have medical insurance.

In March, an appeals court ruled a Mr. Frost has the right to challenge the reasonableness of ParkviewHospital's pricing by presenting evidence of lower rates paid by insured patients for the same services.

Under Indiana law known as the Indiana Hospital Lien Act, if exact prices for services are not known by either the consumer or the service provider up front, the service provider must offer a "reasonable" price.

Mr. Frost argued prices listed on hospitals' chargemasters are not intended to be paid and do not reflect the value of the service performed. Rather, it is a point for negotiation between the hospital and insurance company.

The court has yet to issue a ruling on the matter.

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