A hospital network that owns 84 facilities and is one of the largest hospital chains in the country is being called out for filing more than 19,000 collection lawsuits in the past 15 months following the onset of the COVID-19 pandemic in the United States, which makes them “far more litigious than most hospital groups,” according to one professor who has studied the trend.
Community Health Systems operates hospitals in 16 states, with most of its facilities concentrated in the Southern United States. It said in the report that litigation is a “last resort” when attempting to collect on unpaid medical debts and that it adopted a policy earlier this year where it is withdrawing lawsuits filed against individuals who make less than 200% of the federal poverty level — about $26,000 for one person. One problem with that policy, according to the report, is that many of CHS’s patients did not fill out the necessary financial forms that could make that eligible for that program. CHS said it only files lawsuits “after it is determined the patient appears to have some ability to pay based on credit record and employment status or if the patient has been non-responsive” to attempts to discuss the unpaid debt.
While the provider says it does not initiate any litigation against an individual who lost his or her job because of the pandemic, patients who have been sued, and their attorneys, claim the company is not responsive and usually unwilling to work out a settlement that makes sense for both parties.
Hospitals in Colorado, Texas, Virginia, Oklahoma, New York, Tennessee, Kansas, Maryland, and Wisconsin have all accused of being “too aggressive” by filing lawsuits to collect on unpaid debts. Many hospitals have stopped filing collection lawsuits and enforcing judgments as a result of the publicity. Last month, UVA Hospital in Virginia announced it was wiping out many of its outstanding liens and judgments dating back to the 1990s, a move that was expected to impact tens of thousands of families.
While noting that CHS is not the only hospital that files collection lawsuits against individuals with unpaid medical debts, the provider’s “aggressive legal strategy” stands out from others, according to the report.
