Lawsuit Alleges Swedish Covenant in Chicago Withheld Charity Care

Two uninsured patients have sued Swedish Covenant Hospital in Chicago, alleging the non-profit hospital failed to provide charity care, according to a Chicago Tribune/Associated Press report.

The plaintiffs' attorney, Alan Alop, JD, said Swedish Covenant repeatedly lost one patient's application for financial assistance and hired a collection agency to pressure her for payment. Mr. Alop also said the hospital told another patient she was ineligible for assistance and demanded cash, according to the report.

Mr. Alop said Swedish Covenant gets an annual tax break of roughly $8 million, according to the report. The lawsuit claims the hospital conducted unfair practices under Illinois consumer fraud law. It seeks $50,000 in punitive damages and a change in hospital policy.

The suit, which was filed Thursday, coincides with uncertainty facing Illinois' non-profit and tax-exempt hospitals. Illinois Attorney General Lisa Madigan is currently drafting new standards for hospital charity care, as mandated by a law passed by Governor Pat Quinn in June.

A spokesperson for Swedish Covenant said the hospital reported $6.2 million in charity care expenses last year, roughly 3 percent of its net revenue, according to the report. The spokesperson was unable to comment on the lawsuit but said patients receive applications for charity care and is their responsibility to return the completed paperwork.

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