Charlotte area hospitals named in series of patient lawsuits over medical debt

by: Doug Coats, Kaci Jones

Posted: Aug 15, 2023 / 09:23 PM EDT

Updated: Aug 16, 2023 / 07:53 PM EDT

RALEIGH, N.C. (QUEEN CITY NEWS) — Three health care systems with local facilities are involved in a report showing North Carolina hospitals suing thousands of patients.

The Duke University School of Law and N.C. Treasurer’s Office presented a report on the lawsuits over medical debt Wednesday in Raleigh. It shows that nonprofit hospitals were the most aggressive actors responsible for placing liens on patients’ homes, targeting not just patients but also spouses and family members.

According to the report, many actions named were attempts to collect surprise bills.

A spokesperson for the Treasurer’s office said Charlotte’s Atrium Health, Gastonia-based CaroMont Health, and Community Health Systems, which operates Davis and Lake Norman Medical Centers in Iredell County, are named in the reports.

The researchers found that hospitals allegedly used the court system to win default judgments against patients and charge significant interest on medical debt. The treasurer’s office also documented instances where hospitals placed liens on patients’ homes.

According to the study, a 70-year-old couple owes $100,627.60 in interest to Atrium Health for medical bills that are more than a decade old. These interest charges doubled the size of their original $91,402.24 debt to a total of $192,384.84.

Every day, interest adds $20.03 to their debt. Now the couple pays $30.00 a month knowing they can never fully pay off their debt.

On Wednesday, Treasurer Dale Folwell will discuss a new report that compiled interviews with patients targeted by hospital lawsuits. Some of these patients described being afraid to seek future medical care, while cancer patients said the financial stress hurt their physical recovery.

In North Carolina a judgment can automatically create a lien against a patient’s home. According to court documents and patient interviews, the Treasurer’s office said patients were sued after alleged failures in charity care or surprise bills in which insured patients unwittingly sought care from a provider outside their insurance network.

The three local hospital networks named all provided statements. the largest, Atrium Health, emphasized it doesn’t away anyone regardless of financial situation. The report shows it was named as a plaintiff in more than 2,400 lawsuits.

Atrium Health doesn’t turn away anyone needing medical care, regardless of their ability or inability to pay for their care. In 2021 alone, we provided $2.46 billion in free and uncompensated care and other community benefits…

“When patients accumulate bills and need help, and we are provided with the proper information, we can help them select plans or programs that could help them resolve – and eliminate – their debt. In fact, an average of 275 patients each day never receive a bill for the care they received, totaling over $437 million each year.”

CaroMont, with facilities in Mount Holly, Gastonia and west Charlotte, mentioned ways it helps those who need assistance paying their bills.

CaroMont Health offers several programs for patients who may need financial assistance and those who cannot pay for medical care. Those programs include interest-free payment plans; long-term, low-interest loans; discounts for the uninsured and charity care for qualified individuals. …

Though rare, there are circumstances where despite exhaustive efforts to support payment of medical bills, CaroMont Health will pursue payment by action in small claims court. This action is taken only in situations where individuals do not meet the requirements for charity care, have chosen not to participate in other financial assistance programs and have not responded to multiple collection attempts. This option is a last resort and represents less than one percent of all accounts.”

The state’s Medical Debt De-Weaponization Act has passed the Senate but did not get a lot of action in the House. Folwell encourages all representatives to think about the people in their district who could benefit from protection like this.

The treasurer’s office encourages those who have felt a hospital has unfairly targeted or charged them to reach out to them.

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