Hospitals have eased off suing their patients who don’t pay their bills, amid public humiliation for the harm they were causing their patients. But, doctors, ambulance companies and dentists are now increasingly suing their patients who don’t pay their bills. Noam N. Levey, Katy Golvala and Jenna Carlesso report for KFF News and the CT Mirror on the results of their investigation into lawsuits against patients who haven’t paid their bills in Connecticut.
Doctors are bringing eight in ten of the lawsuits against patients who don’t pay their bills in Connecticut. (Most likely, private equity is behind these lawsuits.) In 2020, hospitals were bringing 75 percent of the lawsuits against patients in Connecticut. But, because the hospitals tend to be not-for-profit, they are responsible for providing aid to patients with little means and must abide by federal laws protecting patients.
Over six years, the researchers found more than 16,000 health-care related suits from health care providers, including hospitals, over unpaid bills. But, just a few hundred providers were responsible for all these lawsuits. In total more than 400 health care providers brought lawsuits out of a total of around 25,000.
Doctors and ambulance companies do not have the same restrictions on lawsuits as hospitals. So, they sue. While the average suit is for less than $3,000, their patients can suffer substantially both financially and emotionally from these lawsuits.
Patients who are sued might see their wages garnished, they might incur additional debt, they might forgo critical care and they might see liens on their homes, among other things.
High-deductible health plans, which require people to pay out of pocket for their care before their coverage kicks in are likely driving a lot of patients into medical debt.
It’s not a reach to believe that private equity is at least partly responsible for these lawsuits, though not exclusively. The health care providers responsible for the greatest number of lawsuits have partnered with Rayus Radiology, a private equity firm.
It is also important to underscore that some of these lawsuits are likely misguided. In some cases, patients have paid or bills are incorrect or the provider has billed the wrong insurer. But, it’s often hard to know what’s accurate and what’s not and to get a straight answer from the doctor’s office.
The investigation only looked at lawsuits in Connecticut. And, Connecticut is taking steps to protect patients. But, not everyone with medical debt and with a focus on hospitals, not doctors and other medical providers.
It stands to reason that these lawsuits are happening throughout the country and that many states do not have the will, the skill or the resources to take on this issue. Our federal government must step in.
Here’s more from Just Care:
- Medical debt plagues 100 million Americans
- Thousands of Americans with medical debt arrested each year
- Millions of adults still carry significant student debt
- Medical debt rising for people who pay through their credit cards
- Coronavirus: Hospitals sue patients to collect payment
