Subaqua Sternal Rubs

Gotta love lawyers — we now have websites "chronicling the high cost of our legal system." Hospitals are now getting class-action suits because patients without insurance are claiming that they are not receiving enough free care. While I don't think anyone should be denied health care, someone has to pay for it… Another argument for a single-payer system, but then the lawyers wouldn't have anything to do, would they?

From Overlawyered.com:

Last week lawyers associated with uber-tobacco lawyer Richard Scruggs fanned out across the country to file a dozen lawsuits against thirteen large non-profit hospitals in eight states. According to one press account, the lawsuits allege that "the institutions are not living up to their charitable missions, are overcharging uninsured patients and are using overly aggressive collection tactics." (Rob Kaiser, "Class actions filed against non-profit hospitals," Chicago Tribune, June 18) Scruggs characterizes the litigation as his attempt "to stop profiteering by nonprofit hospitals." (Bill Lewis, "St. Thomas among hospitals accused of 'profiteering,'" Nashville Tennessean, June 18)

The Tennessean article further explains:

"The lawsuit said Saint Thomas unfairly benefits from its long-held tax-exempt status, and the suit alleges a breach of contract, consumer fraud and deceptive business practices because Saint Thomas and the other nonprofits allegedly haven't provided enough charity care in return for their tax exemptions.

'''In exchange for its promise to operate as a charitable, nonprofit entity, defendant receives millions of dollars each year in federal state and local tax exemptions,' the lawsuit said. 'In reality, (the) defendant is anything but charitable.'

"Scruggs said he hopes to have the 13 lawsuits certified as class-action cases. Saint Thomas is the only Tennessee hospital named in the lawsuits. Scruggs said more lawsuits will follow, but he did not name the hospitals targeted.

"He criticized the hospitals named in the lawsuits for charging what he said were their highest rates to patients who do not have insurance, while giving discounts to big insurance companies. If the poor or uninsured patients cannot pay their bills, the hospitals garnishee wages and bank accounts, seize houses and force people into bankruptcy, he said."

University of Chicago law professor Richard Epstein, quoted in the Tribune article, had this reaction: "Dicky Scruggs has got a lot of money, and he's looking for a lot of trouble," Epstein said. "The question is, what's the law that's being violated?"

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