Lawsuits allege Memphis hospitals engage in illegal billing practices

Former patients have filed lawsuits against several hospitals in Memphis, Tenn., alleging the hospitals attempt to collect payment from patients for debts that have already been satisfied by payers, according to The Commercial Appeal.

Advertisement

In the two lawsuits, which are seeking class-action status, the patients name hospitals in Methodist Le Bonheur Healthcare’s network and Saint Francis Hospital as defendants.

The patients accuse the hospitals of engaging in balance billing, which occurs when providers bill patients for outstanding balances after the insurer pays its portion of the bill. Jimmy Blount, the lawyer representing the patients, told The Commercial Appeal courts have deemed balance billing illegal. He said the practice violates contracts the hospitals have with insurers, which include discounted rates.

Methodist Le Bonheur Healthcare told The Commercial Appeal the lawsuit is “baseless,” and a Saint Francis Hospital spokesperson said the hospital doesn’t comment on pending litigation.

More articles on legal and regulatory issues:

15 latest healthcare industry lawsuits, settlements
DOJ charges 412 in $1.3B healthcare fraud sweep
Former hospital executive admits stealing $391k from medical association

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Download Whitepaper

The cost-saving opportunity most health systems overlook

Many hospitals and health systems scrutinize staffing, service lines, and payer contracts for savings. Fewer look at one of their largest assets: real estate.…

Advertisement

Next Up in Legal & Regulatory Issues

Advertisement

Comments are closed.