Jefferson is sued over care for poor A lawyer says it overcharges the uninsured. The suit is part of a national effort the hospital said is groundless.

July 22, 2004|By Josh Goldstein INQUIRER STAFF WRITER

A lawyer who took on the tobacco industry and won has now sued the Philadelphia area's largest hospital network - the Jefferson Health System - for its billing practices directed at uninsured patients.

Richard Scruggs leads a consortium of plaintiff lawyers that, in recent months, has filed 39 suits against about 340 nonprofit hospitals in 20 states charging that they failed to provide government-required charity care to uninsured patients and used "harassing" collection methods.

The lawsuit filed in federal court in Philadelphia yesterday alleges that "the Jefferson health defendants' conduct is unconscionable, discriminating, misleading and deceptive."

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In a statement, Jefferson general counsel David F. Simon said the network had not yet seen the lawsuit and thus could not comment on it.

"If the claims made against [Jefferson] turn out to be similar to those brought against other health systems across the country," he said, "we believe they will ultimately be found to be without merit."

The suit says Jefferson improperly:

Charged uninsured patients grossly inflated prices for treatment.

Provided discounted care to companies and organizations connected with members of its board.

And engaged in aggressive, often abusive, tactics to collect payments from the uninsured.

"This is an effort by a group of trial lawyers to inappropriately paint with a broad brush institutions across the country," said Andrew Wigglesworth, president of the Delaware Valley Healthcare Council, which represents area hospitals.

"These claims don't fit the circumstances in Southeastern Pennsylvania," Wigglesworth added. "Moreover, hospitals did not create the problem and in fact are the only consistent safety net for uninsured people."

He noted Pennsylvania dedicated a significant portion of the state's share of the nationwide tobacco settlement to help hospitals pay for the uncompensated care. "Now it would appear that the same lawyers who sued the tobacco companies are seeking double recovery from us," he said.

As one of the lead private attorneys in the legal assault on the tobacco industry in the 1990s, Richard Scruggs of Mississippi helped win a $206 billion settlement for states.

According to Jefferson's financial statements for the year that ended on June 30, 2003, the Radnor-based health network provided about $94 million in charity care. Its revenue was $2.5 billion that fiscal year.

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