A lawsuit has been filed against Klamath Falls, Ore.-based Sky Lakes Medical Center alleging the hospital violated charity care requirements, The Lund Report reported Nov. 28.
The lawsuit was filed on behalf of a patient who was allegedly sent to collections after he was unable to pay for medical treatments, according to the report. The suit seeks $1 million each in punitive payments from the hospital and Carter-Jones, the debt collection agency contracted with Sky Lakes. The suit also seeks damages on behalf of thousands of patients to be proven at trial, or $200 for each violation of the Oregon Unlawful Trade Practices Act, whichever is greater.
The patient, Nathaniel Boren, received treatment at the hospital when he was uninsured and couldn't afford his bills because he only had a temporary job and other obligations, according to the report. The suit alleges that he should have qualified for Sky Lakes' financial assistance programs, but the hospital violated state law by not actively screening patients to determine whether they qualified for assistance. Instead, the hospital allegedly only advised them of the discount if they called in and asked.
Carter-Jones is accused of violating federal law by making misleading representations and trying to collect amounts it was not authorized to, according to the report. The collection agency and hospital are also accused of ignoring a state law restricting the ability to charge interest to patients who qualify for financial assistance.
The collection agency received a court order requiring Mr. Boren to pay the $794 bill and threatened to garnish his wages, according to the report. The payment amount rose to $887 when he paid it off this year.
Grant Kennon, Sky Lakes' vice president and chief legal officer, told The Lund Report that the hospital provides financial assistance "on a sliding scale to eligible patients whose yearly income is less than or equal to 250% up to 400% of the current federal poverty guideline, and flexible payment options are available to all patients." Mr. Kennon maintained that the hospital "follows lawful debt collection practices at all times [and] cannot comment further on possible or pending litigation, but it is committed to vigorously defending its collection practices."