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Article Excerpt
Dozens of federal class-action lawsuits have been filed recently against more than 300 nonprofit hospitals and hospital systems in 20 states. The plaintiffs accuse the defendants of failing to honor their agreement to provide charitable care to uninsured patients in return for substantial federal and state tax exemptions.
The complaints allege that the hospitals charge uninsured patients substantially more than insured patients for the same health services, then use predatory methods to collect on unpaid bills.
The American Hospital Association (AHA), which represents approximately 5,000 hospitals and health care providers, has been named as a co-conspirator. Plaintiffs claim that it "aids and abets ... its nonprofit hospital members in carrying out their unfair, discriminatory, unconscionable, and oppressive business practices." (See, e.g.,
Wright v. St. Dominic Health Servs., Inc., No. 04CV521LN (S.D. Miss. filed July 7, 2004).)
Plaintiff attorney Richard Scruggs of Oxford,...
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