Grand Rapids and Southfield, Mich.-based Corewell Health faces a proposed class action alleging it tried to collect money from patients, estates and guarantors after insurers had already paid for their care.
Michelle Rzanca, personal representative of the estate of Jordan Field, filed the suit May 22 in the U.S. District Court for the Eastern District of Michigan. It names Corewell Health and DCM Services, a collection agency Corewell uses.
Mr. Field was taken to Corewell Health Butterworth Hospital in Grand Rapids in March 2024 after a respiratory arrest during sedation at an oral surgery office, according to the complaint. He died three days later. Corewell billed $61,609.62 for his care, and Blue Cross Blue Shield paid $19,448.92, the complaint said.
Corewell and DCM then sent letters seeking about $42,000 from Mr. Field’s estate between October 2024 and April 2026, the complaint said. The lawsuit argued that no balance was owed because the Blue Cross payment satisfied the bill in full under Corewell’s contract with the insurer, calling the debt “fake.”
The lawsuit argued that this is part of a wider practice at Corewell. It alleged that the system accepts reduced payments from commercial insurers, Medicare and Medicaid, then treats the difference between its chargemaster rates and those payments as an “outstanding balance” to collect. It also alleged, on information and belief, that Corewell uses this practice when a patient or estate has or may have an injury claim against a third party. Mr. Field’s estate began a wrongful death and medical malpractice claim against the oral surgery office in July 2024.
The suit brings nine counts. They include violations of the federal Fair Debt Collection Practices Act (against DCM only), Michigan’s debt collection and consumer protection laws, unjust enrichment, statutory conversion and fraud. It seeks class certification, restitution, treble and statutory damages, an injunction and a jury trial. The proposed class covers emergency patients, deceased patients’ estates and guarantors billed above what is permitted after insurer or government payment.
In a July 20 response, Corewell argued that the debt “was valid and legally owed,” that it is not a debt collector under federal or Michigan law, and that the court lacks jurisdiction. It denied that the Blue Cross payment satisfied the bill in full. It asked the court to dismiss the case.
The plaintiff must file an amended complaint by Nov. 16, according to an Oct. 2 court order.
“The claims made in this lawsuit are false, and we plan to defend against them,” Corewell told Becker’s in a Nov. 5 statement.
DCM did not immediately respond to a request for comment.
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