Ferguson is suing nine Providence hospitals
By Terry Murry on Friday, February 25th, 2022 in Columbia Basin News More Top Stories
OLYMPIA – Washington Attorney General Bob Ferguson announced Thursday a consumer protection lawsuit against nine Providence-affiliate hospitals, including Kadlec Regional Medical Center in Richland and Providence St. Mary Medical Center in Walla Walla for failing to make charity care accessible. Five Swedish hospitals, located in Seattle, Ballard, Issaquah, and Edmonds were also named in the lawsuit.
Ferguson’s lawsuit, filed in King County Superior Court, claims that these hospitals trained employees to aggressively collect payment without regard for a patient’s eligibility for financial assistance, failed to notify patients they were eligible for charity care financial assistance when the providers determined they qualified for assistance, and sent more than 54,000 patient accounts to debt collection, despite knowing the patients were eligible for financial assistance. These 54,000 patient accounts totaled more than $70 million.
The hospitals’ conduct began in 2018. The lawsuit claims much of their conduct continues to this day, despite the Attorney General’s Office investigation and previous lawsuits Ferguson has filed against other hospitals over similar practices. A Providence financial executive admitted in a deposition in November that the hospitals continue to send patients eligible for financial assistance to collections.
Ferguson will also file a motion for preliminary injunction unless the hospitals agree to stop their conduct while the case is ongoing.
The lawsuit seeks restitution in the form of full write-off of medical debts, and refunds, plus interest, for patients who did not receive financial assistance. In addition to the $70 million in debt relief and refunds, Ferguson is also seeking millions of dollars in civil penalties. The total number of Consumer Protection Act violations will be determined as the case progresses.
Anyone who paid for medical services or are in collections for a medical bill from a Providence or Swedish hospital or Kadlec Regional Medical Center who believes they may be eligible for charity care, should contact Attorney General’s Office Investigator Bau Vang at 206-516-2989 or by email at bau.vang@atg.wa.gov
A statement provided by the Providence family of organizations – which includes Providence, Swedish and Kadlec, said it was extremely disappointed with Ferguson’s decision to file a lawsuit, claiming it’s the largest provider of charity care in the state of Washington having delivered $79 million in free and discounted care statewide in 2020 alone.
Providence also said it will continue to support policies that expand access to charity care and make health care more accessible to vulnerable patients but concluded its statement by saying “We look forward to defending ourselves in court.”
