AABP EP Awards 728x90

Methodist hospital parent did not use two-tier pricing system, court rules

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A three-judge panel of the Iowa Court of Appeals has determined that a Polk County judge properly dismissed claims that hospitals operated by the former Iowa Health System used a two-tier pricing scheme for insured and uninsured patients. Four patients at Iowa Methodist Medical Center in Des Moines had sued Iowa Health, which now operates as UnityPoint Health, claiming that they were charged varying rates after being treated between 2006 and 2009. The plaintiffs sought class-action certification, which Polk County District Judge Robert Hutchison denied. He granted Iowa Health’s motion for summary judgment on all claims. The appellate judges noted that at the time the plaintiffs were treated, Iowa Health used a pricing system that charged set rates for a variety of treatments and services. However, the actual payments for those services frequently were paid under discounts negotiated by health insurers or were charged off or reduced for people who lacked health insurance. In their opinion, the appellate judges noted that between 2000 and 2010, Iowa Health’s hospitals in Greater Des Moines billed self-pay or uninsured patients $202 million. Of that amount, uninsured patients paid $17 million due to charitable discounts and write-offs of uncollectable debts. Attorney Jeffrey Lipman, who was part of the team representing the plaintiffs, said the Supreme Court of Iowa could be asked to review the appellate court ruling because the case involves key public policy issues.