Servedio v. Our Lady of the Resurrection Medical Center

No. 04 L 3381 (Ill. Cir. Ct. Cook County January 6, 2005) ; Clearinghouse Number: 55819

Description

Suit Alleging that Hospital Charges Uninsured Patients Higher Fees May Proceed

Abstract

The court sustained uninsured emergency room patients’ complaint against defendant medical center; the complaint alleged excessive medical charges in violation of the Illinois Consumer Fraud Act. Plaintiffs alleged that defendants charged uninsured patients significantly higher prices than those paid by insured patients. They alleged that defendants used draconian collection procedures and lawsuits to collect unpaid amounts, thereby deterring plaintiffs from seeking future medical treatment. Moving to dismiss, defendants argued that Medicare regulations prevented hospitals from systematically giving discounts to uninsured patients; that billing for medical services did not fall within the Illinois Consumer Fraud Act’s definition of trade or commerce; and that defendants’ alleged conduct was not unfair. The court cited a U.S. Department of Health and Human Services letter which specifically states that hospitals may give blanket discounts to uninsured patients without risk of losing Medicare funding. In light of the General Assembly’s and the Illinois Supreme Court’s explicitly stated desire that the Consumer Fraud Act be read broadly to favor consumers (both the legislature and the Supreme Court explicitly command that the term “trade or commerce” be read inclusively), the Act applies to billing practices for medical services, the court concluded. The court found that the alleged practice of requiring emergency room patients to pay fees two and three times the de facto normal rate was against public policy, oppressive, and unethical. The court also found that this practice was injurious to consumers in that uninsured patients were not likely to seek medical attention when they most needed it.

Additional Information

Attorney Information
Plaintiff represented by Alan Alop, Legal Assistance Foundation of Metropolitan Chicago, 111 W. Jackson Blvd., Suite 300, Chicago, IL 60604-3502 (telephone number: 312.341.1070).
Docket Date
2005-01-06 00:00:00+00:00

Files

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