Hospitals settle suit filed by uninsured patients

Uninsured patients are filing claims for discounts on their bills from eight Chicago and suburban Catholic hospitals following the settlement of a class-action lawsuit.

An agreement approved Monday resolves claims covering more than 200,000 patients of Resurrection Health Care, one of the area's largest hospital systems. The lawsuit, filed in 2004, alleged Resurrection hospitals overcharged uninsured patients by millions of dollars.

A truck driver, a homemaker married to a plumber and a woman who works at a trophy company were among the low-income, uninsured patients named as plaintiffs in the lawsuit. They claimed no one told them about the hospitals' charity care programs and collection agencies hounded them when they didn't pay their bills.

They ended up paying small monthly amounts on bills totaling many times more what insurance companies would pay for the same care for insured patients. Insurance companies negotiate discounted rates with hospitals. Government programs like Medicaid also pay lower rates, leaving the uninsured with bills for the highest charges.

"We thought it was fundamentally unfair to charge uninsured patients two to three times what insured patients were paying," said Washington, D.C. attorney Steve Skalet, who helped represent the plaintiffs. The lawsuit claimed the hospitals violated the Illinois Consumer Fraud and Deceptive Business Practices Act.

In the settlement, Resurrection agreed to modify its billing structure and reduce charges to uninsured patients. The hospitals will recalculate bills for those who file claims and give refunds and vouchers to people who have already paid $500 or more.

The hospitals deny any wrongdoing and agreed to the settlement to avoid continued litigation costs and end the controversy, said Resurrection spokesman Brian Crawford. The nonprofit Catholic hospitals are sponsored by the Sisters of the Holy Family of Nazareth and the Sisters of the Resurrection.

"We exist to serve the poor and that's what we've done for 100 years and that's what we're still doing," Crawford said.

Patients may be eligible for vouchers or discounts if they got care at Resurrection hospitals from Sept. 16, 2001, to Sept. 23, 2008.

Claims must be filed by Feb. 16. Claim forms are available online at www.resclassaction.com.

Nearly 2,000 patients already have filed claims. Notices were sent in November and December to 220,000 patients who may qualify.

The Resurrection hospitals in Chicago are St. Joseph Hospital, Saints Mary and Elizabeth Medical Center, Our Lady of the Resurrection Medical Center and Resurrection Medical Center. The suburban hospitals are Evanston's St. Francis Hospital, Des Plaines' Holy Family Medical Center, Oak Park's West Suburban Medical Center and Melrose Park's Westlake Hospital.

The lawsuit and other similar litigation has led to two new laws in Illinois that protect uninsured patients, Skalet said. A 2006 law sets standards for hospital bill collectors. A 2008 law that goes into effect in April puts a ceiling on charges to the uninsured.

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