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Patients file class action
lawsuit against Advocate Health Care
CHICAGO, IL
November 19, 2003 -
Patients filed a class
action lawsuit alleging that Advocate Health Care violates
the law by overcharging uninsured patients and shirking its
responsibilities to provide free and reduced price medical
care.
Attorneys Thomas Geoghegan and Scott Frankel filed a class
action lawsuit in the Cook County Circuit Court today
alleging that Advocate Health Care Network, the largest
provider of medical services in Cook County, violates the
law by overcharging its uninsured patients and shirking its
responsibilities for free and reduced cost medical care
expected in exchange for its tax breaks.
As a tax-exempt religious and charitable institution,
Advocate is obligated to provide free care to people who
cannot afford treatment. Instead, Advocate charges the
uninsured up to two times more than it expects insurance
companies to pay for the same treatment. “Non-profit
hospitals are expected to provide free care in exchange for
generous tax breaks, not overcharge the uninsured,” said
Geoghegan.
The lawsuit, filed on behalf of seven plaintiffs and other
uninsured patients treated at Advocate’s eight Chicago-area
hospitals, charges that these practices violate the Illinois
Consumer Fraud and Unfair Practices Act and demands
repayment of all monies unjustly collected from the
uninsured. Potential repayment to victims is expected to be
in the millions of dollars.
In addition to repayment, the lawsuit is seeking to prohibit
Advocate from overcharging the uninsured and from pursuing
collections and legal action against these individuals. The
suit also asks the court to require that Advocate implement
a meaningful charity care program.
“If successful, the suit would not only refund overcharges,
but also change the way hospitals do business with the
uninsured,” said Geoghegan.
The lawsuit seeks to provide relief and assistance to
uninsured patients like Frank Vacha and Tiffany Montgomery.
Vacha, a retired flower shop owner, cut his finger and was
treated at Advocate Christ Hospital Medical Center. After
surgery to drain an infection, Advocate billed Vacha for
more than $13,000. If Vacha was insured, the insurance
company would have paid approximately $6,500. “I said I was
uninsured, and the hospital said it would try to reduce the
bill, but there was no discount.” To date, Vacha has paid
nearly $7,400 and the hospital recently filed suit to
collect the remaining $5,645. “I tried to get a second
mortgage to pay the hospital bill, but was turned down
because the hospital’s lawsuit ruined my credit.”
Montgomery recently decided to declare bankruptcy after the
hospital’s wage garnishment left her struggling to pay for
rent and food. Montgomery was sued by Advocate Bethany
Hospital for $3,338. If Montgomery was insured, the
insurance company would have paid approximately $1,500. The
hospital seized over $300 a month from her paycheck as a
food industry worker. To date, she has paid nearly $2,300.
“I offered to pay $100 a month because that’s what I could
afford, but that wasn’t enough for the hospital’s attorney.
They didn’t offer me any financial assistance or any relief
whatsoever.”
The patients’ attorneys said that the total number of
persons in the class and the total amount of compensatory
and punitive damages will become known during the discovery
stage of the suit. “The number of exploited patients could
be in the thousands because Advocate is the leading private
provider of health care to the uninsured in our community,”
according to attorney Scott Frankel, who is also
representing the plaintiffs.
Advocate Health Care Network is a not-for profit
organization based in Oakbrook, Illinois. It operates eight
general acute care hospitals, two children’s hospitals and
more than 200 clinics and health care sites. The acute care
hospitals include: Illinois Masonic, Trinity and Bethany
Hospitals in Chicago; South Suburban Hospital, Hazel Crest;
Christ Hospital and Medical Center, Oak Lawn; Lutheran
General Hospital, Park Ridge; Good Samaritan Hospital,
Downers Grove; and Good Shepherd Hospital, Barrington.
Advocate is affiliated with the Illinois Conference of the
United Church of Christ and the Metropolitan Chicago Synod
of the Evangelical Lutheran Church of America. While its
hospitals are non-profit, Advocate operates many for-profit
subsidiaries.
In 2002, Advocate took in $2.6 billion in total revenue and
earned $46.8 million in operating profit. |
