- Joined
- Jun 26, 2004
- Messages
- 947
- Reaction score
- 7
Has anyone seen this? Now patients are suing over the "right" to free medical care? I hate the sense of entitlement the people in this country have... AHHHHH!
jd
Class Action Lawsuits Question Tax Status of Non-Profit Hospitals
Last week, uninsured patients filed six federal class action lawsuits against hospitals and hospital systems that they claim fail to provide charity care in return for tax exemptions. These lawsuits are the most recent in a string of litigation against 27 hospital systems in 15 states.
The lawsuits allege that the hospitals promised to provide charity care in exchange for receiving federal tax-exempt status, sales tax-exempt status and ad valorem tax-exempt status. The cases also allege violations of the Emergency Medical Treatment and Labor Act (EMTALA), saying the hospitals require uninsured patients to sign a form promising to pay in full prior to care in emergency departments.
"I don?t see the EMTALA element as a valid element in the cases," said Stephen Frew, JD, a risk management consultant who specializes in EMTALA issues.
"EMTALA violations are an individual cause of action only. The individual allegation may or may not be true, but in a class action case, I?d find it hard to believe that one case contributes to the validity of the class action suit. It wouldn?t show a generalized situation," he added. "I don?t see it as a major contributing factor in these cases."
Mr. Frew cautioned that the hospitals should be mindful of the allegation about providing enough care, but that some states have different laws, and "not for profit" is not necessarily the same thing as "charity."
Named as a conspirator in all of the cases is the American Hospital Association (AHA), which the plaintiffs claim provides advice to the nonprofit hospitals on billing and collection practices.
Experts said the issues raised in this lawsuit could highlight exemption issues for state governments, Congress and the IRS, as well as prompt a review by congressional committees to determine if nonprofit hospitals are legally obligated to provide discounted or free medical care to uninsured patients.
The plaintiffs are seeking unspecified monetary damages, as well as injunctive relief. This appears to be the first litigation by a private party arguing that a non-profit hospital is required to provide charity care based on its Federal tax exemption.
jd
Class Action Lawsuits Question Tax Status of Non-Profit Hospitals
Last week, uninsured patients filed six federal class action lawsuits against hospitals and hospital systems that they claim fail to provide charity care in return for tax exemptions. These lawsuits are the most recent in a string of litigation against 27 hospital systems in 15 states.
The lawsuits allege that the hospitals promised to provide charity care in exchange for receiving federal tax-exempt status, sales tax-exempt status and ad valorem tax-exempt status. The cases also allege violations of the Emergency Medical Treatment and Labor Act (EMTALA), saying the hospitals require uninsured patients to sign a form promising to pay in full prior to care in emergency departments.
"I don?t see the EMTALA element as a valid element in the cases," said Stephen Frew, JD, a risk management consultant who specializes in EMTALA issues.
"EMTALA violations are an individual cause of action only. The individual allegation may or may not be true, but in a class action case, I?d find it hard to believe that one case contributes to the validity of the class action suit. It wouldn?t show a generalized situation," he added. "I don?t see it as a major contributing factor in these cases."
Mr. Frew cautioned that the hospitals should be mindful of the allegation about providing enough care, but that some states have different laws, and "not for profit" is not necessarily the same thing as "charity."
Named as a conspirator in all of the cases is the American Hospital Association (AHA), which the plaintiffs claim provides advice to the nonprofit hospitals on billing and collection practices.
Experts said the issues raised in this lawsuit could highlight exemption issues for state governments, Congress and the IRS, as well as prompt a review by congressional committees to determine if nonprofit hospitals are legally obligated to provide discounted or free medical care to uninsured patients.
The plaintiffs are seeking unspecified monetary damages, as well as injunctive relief. This appears to be the first litigation by a private party arguing that a non-profit hospital is required to provide charity care based on its Federal tax exemption.
