Date Posted: Monday, August 23, 2004 at 10:30 AM CST

Contact: Richard Scruggs
Scruggs Law Firm, P.A.
(662) 281-1212

44 CLASS ACTION LAWSUITS IN 23 STATES FILED TO DATE BY
UNINSURED PATIENT PLAINTIFFS AGAINST NONPROFIT HOSPITALS


FOR IMMEDIATE RELEASE

Oxford, Mississippi, April 13, 2004 - The nonprofit Mississippi Baptist Health Systems, which includes Mississippi Baptist Medical Center of Jackson, Mississippi, today has been named as a co-defendant along with the American Hospital Association (“AHA”) in a class action lawsuit brought by uninsured patients.  The lawsuit charges defendants Mississippi Baptist and the AHA with failing to fulfill Mississippi Baptist’s obligation to provide government-required charity care in return for substantial tax exemptions.  Mississippi Baptist includes a 619 bed hospital in Mississippi and is one of the most financially successful healthcare systems in the state of Mississippi with net assets exceeding $250 million.  

In addition to the lawsuit filed against Mississippi Baptist, four other lawsuits have been filed recently by uninsured patient plaintiffs against nonprofit hospital systems and hospitals and the AHA.  The lawsuits all charge the defendants with requiring their uninsured patients to pay unfair and unreasonable healthcare prices that are far in excess of the discounted amounts accepted by these same defendants from their insured patients.

With the filing of these lawsuits, 44 uninsured patient class action lawsuits have been brought against nonprofit hospital systems across the country since June 17, 2004.  These defendant nonprofit hospital systems advised by defendant AHA control in excess of 350 hospitals in aggregate.

The most recent class action lawsuits are:

• In Arkansas: Defendants: Baptist Health and American Hospital Association; The United States District Court for the Eastern District of Arkansas Western Division; litigation filed by Thrash Law Firm, and Barrett Law Office, P.A.


• In Louisiana: Defendants: Christus Health; Christus Health Southwestern Louisiana; Christus St. Patrick Hospital; American Hospital Association; United States District Court Middle District Court of Louisiana; litigation filed by Ranier, Gayle & Elliot LLC; Barrett Law Office, P.A., and Weisman, Kennedy, Berris, Co., L.P.A.

• In Massachusetts: Defendants: Baystate Medical Center, Baystate Health System, Inc., American Hospital Association; United States District Court for the District of Massachusetts; litigation filed by Ranier, Gayle & Elliot LLC; Barrett Law Office, P.A., and Weisman, Kennedy, Berris, Co., L.P.A.

• In Mississippi:  Defendants: Mississippi Baptist Medical Center, Inc., Mississippi Baptist Health Systems, Inc., American Hospital Association; United States District Court for the Southern District of Mississippi Jackson Division; litigation filed by David L. Merideth, M.D., J.D., and Sonny Merideth, Esq.

• In Virginia: Defendants: Inova Health Care Services; Inova Health Systems Foundation; American Hospital Association; United States District Court for the Eastern District of Virginia; litigation filed by Barrett Law Office and Vroon & Crongeyer, LLP.

Richard Scruggs, a lead attorney for the nonprofit hospital litigation, stated, “It is unfortunate, but clear that the abuses and wrongdoings are widespread throughout the nonprofit hospital industry.  These lawsuits are not about creating policy, legislation or changing the law.  They are about adhering to the law and providing government-required charity healthcare to uninsured patients.  We are becoming painfully aware that many nonprofit hospitals, benefiting from the cross-pollination of information from the AHA, are not meeting the needs of the communities they serve but rather are catering to special interest groups.  To cover up their actions, they often engage in manipulative accounting, less than full disclosure, and public misinformation campaigns.  They are reaping hundreds of millions of dollars in tax benefits but not living up to their end of the obligation in return for these tax benefits, which is charitable healthcare to the uninsured.  In effect, the wrongdoers are having the U.S. taxpayers underwrite their actions.”

In addition, among other things, the Mississippi Baptist class action lawsuit describes Defendant Baptist as counterfeit; it charges that Defendant Baptist functions as “for-profit” business.  It makes clear that while Defendant Baptist garnishes the wages of its uninsured patients it compensates and/or contributes excess “six figure” incomes to many of its executives including $763,000 to its President and CEO for the fiscal year ending August 31, 2002 and at least $672,000 in compensation for the fiscal year ending August 31, 2003.  



Mr. Scruggs stated, “The class action lawsuits allow uninsured patients to seek remedies through our legal system to end these misdeeds by defendant nonprofit hospitals.  We will continue to vigorously pursue through all appropriate legal means nonprofit hospitals that are not fulfilling their government obligations with respect to uninsured patients, including seeking to work with nonprofit hospitals in achieving settlements with uninsured patients similar to that reached earlier this month with North Mississippi Medical Services.”

To learn more about that the class action lawsuits by uninsured patients against nonprofit hospital systems and nonprofit hospitals, please visit www.nfplitigation.com

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