Hospitals accused of price-gouging
Los Angeles: Suit says uninsured charged too much
By PETER PRENGAMAN
Associated Press
LOS ANGELES - Lawyers representing three uninsured Latinos filed a class-action suit Tuesday against Catholic Healthcare West hospitals, alleging price-gouging of patients without health coverage.
The suit claims the San Francisco-based health care provider with 40 hospitals in California, Nevada and Arizona routinely charges uninsured patients up to five times the amount paid by private insurers and government programs for the same services.
The suit seeks to force Catholic Healthcare West to reform billing practices in the three states and reimburse the three Latino plaintiffs -- a woman immigrant from El Salvador and two Mexican-Americans.
''What's fair about paying three to five times more?'' lawyer Archie Lamb said at a news conference. ''The working poor are being run into bankruptcy by this payment system.''
Catholic Healthcare West issued a statement saying it ''was proud of our record of serving those in need, regardless of their ability to pay.''
The nonprofit medical group last year provided $623 million in charity care and community benefits for the poor and uninsured, according to the statement.
Jan Emerson, spokeswoman for the California Hospital Association, said the lawsuit was unfounded.
''The allegation of price-gouging is absurd,'' she said. ''The uninsured on average only pay 4 percent of their hospital bill.''
Emerson said California hospitals lost $6.5 billion by providing care to uninsured and underinsured patients in 2004.
Emerson acknowledged that private insurers and government insurance programs negotiate lower rates for large groups of people that are unavailable to the uninsured.
She pointed out, however, that Catholic Healthcare West was among the hospital groups that agreed to offer discounts to uninsured families who don't qualify for government programs.
Mirna Estupinian, a 35-year-old mother of two from El Salvador living in Los Angeles, told reporters Tuesday that in June an ambulance took her to a Healthcare West hospital for treatment of severe abdominal pain.
She stayed at the hospital two days, had X-rays and was diagnosed with gastritis. A few weeks later, she said, she received a bill for $20,296. Her husband's job as a truck driver didn't provide health insurance.
''The stress of owing $20,000 was enormous,'' she said, wiping back tears. ''I had to take a loan to pay it, and now we are selling my house in El Salvador to pay it back.''
Estupinian's account could not be verified, as hospital officials said privacy laws prevented them from talking about individual patients.
Lamb said the hospital would only have charged a private insurance plan $5,600 for the same service, and even less for federal health programs like Medicare.
Hospital officials could not immediately provide details on different billing costs for the procedures.