Schedule a Consultation: (973) 274-5200

Senators Urge Nonprofit Hospitals to Stop Suing Low-Income Patients

By Paul da Costa on January 30, 2015


ProPublica and NPR recently reported on the trend of nonprofit hospitals garnishing the wages of low-income patients who are unable to pay their medical bills.  One Senator, Charles Grassley (R-Iowa), recently began inquiring into the practice in an effort to stop it.  In particular, Sen. Grassley sent a letter to a nonprofit hospital in Missouri who consistently employs the practice.

Under federal law, nonprofit, tax-exempt hospitals are supposed to provide care to patients, regardless of whether they can afford it or not.  In his letter, Sen. Grassley asked the hospital about its practices regarding bill collection because there are allegations that the hospital has failed to treat low-income patients as it should under the law.  In particular, the hospital has garnished the wages of 6,000 individuals who paid a total of $12 million from 2009-2013.  In most cases, the patients would have qualified for financial assistance, but the hospital failed to inquire into income-level. 

Moreover, the hospital blamed the patients for the entire scheme, saying patients were at fault for failing to make their income-status known to the hospital.  Under the law, however, the hospitals have a duty to inquire into income status to determine whether a patient is eligible.  While at this point, Sen. Grassley has no plans to institute new legislation regarding this issue, he hopes that an investigation into hospital practices will spur hospitals to act on their own.  Nevertheless, he leaves open the possibility that legislation regulating nonprofit hospitals more strictly may be necessary in the future.

If you or a loved one has been charged for nonprofit hospital services despite qualifying for financial assistance, or experienced any other injury in connection with hospital care, you may have a legal claim to compensation for your injuries.  Call Paul M. da Costa, Esq. at Snyder & Sarno, LLC today at (973) 274-5200.  

Related to This

Message Us

If You Have a Case, Give Us A Call Today!

973-274-5200

X CLOSE

Bergen County Office

401 Hackensack Ave
Ste 706
Hackensack, NJ 07601

Open Today 8:30am - 5:30pm

Morris County Office

19 Cattano Ave.
Morristown, NJ 07960

Open Today 8:30am - 5:30pm

Essex County Office

425 Eagle Rock Ave
Ste 100
Roseland, NJ 07068

Open Today 8:30am - 5:30pm

Somerset County Office

440 Route 22 E
Ste 170
Bridgewater, NJ 08807

Open Today 8:30am - 5:30pm

X CLOSE

Message Us

X CLOSE

X CLOSE

Popular Tags