Posted on Fri, Sep. 10, 2004


Lawsuits claim hospitals charged overcharged uninsured patients


Associated Press

Lawsuits have been filed against three South Carolina hospital systems where attorneys say uninsured patients were charged higher fees than those covered by private insurance, Medicaid or Medicare.

The lawsuits claim that hospitals charge patients different prices for identical services. The lawsuits say the hospitals breached their contractual duty to charge reasonable rates and boosted their bottom lines at the expense of the uninsured.

The lawsuits seek to end multitiered pricing practices. The lawsuits also seek compensation for patients, but the amount has not been determined because complaints are still being collected, said English McCutchen, one of the Columbia attorneys who filed the lawsuits.

As many as 10 more suits are likely to be filed in South Carolina next week, McCutchen said.

Palmetto Health Alliance, one of the systems named, is reviewing the lawsuit, said spokeswoman Judy Cochett Smith. "We believe our policy and practices are correct," she said.

Smith said all patients are charged the same amount, but how much patients pay differs according to what category patients fall in - insured or uninsured.

If all patients paid the same amount, it "would be called socialized medicine," Smith said.

One state, Maryland, sets all hospital rates, and in turn has the lowest costs, said Don DeMoro, executive director of the Institute for Health and Socio-Economic Policy.

The California-based institute released its annual study of nationwide hospital costs this week, with Maryland lowest on the list. South Carolina ranked among the most expensive states for a variety of health services.

The South Carolina lawsuits name the following hospital systems: Palmetto Health Alliance, which owns Palmetto Baptist-Columbia, Palmetto Richland and Palmetto Baptist-Easley; Lexington Medical Association, which owns Lexington Medical Center, and Health Management Associates, a Naples, Fla.-based company that runs Upstate Carolina Medical Center in Gaffney and Carolina Pines Regional Medical Center in Hartsville.

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Information from: The State, http://www.thestate.com/





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