John Muir Health Confirms Its Commitment to Charity Care and Discounts for the Uninsured

Settlement Agreement Reached Over Charges to Uninsured Patients

John Muir Health recently entered into a settlement agreement in a class action lawsuit related to the organization's billing of uninsured patients. This settlement is consistent with charity care and discount policies John Muir Health has had in place that enhance the level of free, or discounted care provided to uninsured individuals and those who qualify for charity care.

Plaintiffs' attorneys filed a class action lawsuit against John Muir Health alleging it charged uninsured patients unreasonably high prices. Class members are those who received emergency hospital services from John Muir Medical Center - Walnut Creek Campus or John Muir Medical Center - Concord Campus, were uninsured and had an annual income of less than $250,000 in the year they received services (between March 1, 2002 and May 21, 2008).

"The largest portion of our community benefit services are devoted to the most vulnerable individuals of our community. This includes the care we provide to patients in our Trauma Center and Emergency Departments, regardless of their ability to pay," said J. Kendall Anderson, president and CEO of John Muir Health. "This settlement is consistent with our charity care policies and other intensified efforts we have made over the years to further assist those who are economically disadvantaged, including the uninsured, underinsured and working poor members of our community."

The lawsuit is one of a series of similar lawsuits brought in the last few years by uninsured patients against hospitals across the country. The settlement has been preliminarily approved by the Contra Costa Superior Court and final approval is anticipated in November. John Muir Health chose to settle this lawsuit to avoid the costs of litigation and concentrate its efforts and resources on providing care to the communities it serves.

Under the terms of the settlement agreement, John Muir Health will provide discounts to uninsured and self-paying patients that are comparable to rates received by commercially insured patients. John Muir is also notifying patients who received hospital services between March 1, 2002 and May 21, 2008, that they may be eligible for refunds or discounts on their original bill. Funds not claimed by class members will be granted to other community healthcare organizations.

In addition, to ensure patients are well informed about John Muir Health's charity care policy and payment assistance discounts and financial counseling services, it will post information on these policies in the Emergency and Main Admitting Departments. It will also make this information available in brochures in these areas and on the John Muir Health website.

John Muir Health has had a charity care policy in effect since 1992, and was one of the first healthcare organizations in the Bay area to establish one. This year, the John Muir Health Board of Directors made a commitment to increase John Muir Health's contributions for vulnerable populations from $4 million in 2007 to an estimated $13 million by 2012. These contributions are in addition to its community benefit contributions for charity care, subsidized healthcare, a wide range of health improvement programs, health professional education and financial in-kind contributions and grants. John Muir Health's total community benefit contributions exceeded $33 million in 2007.

Patient Assistance Program Brochure

We understand that sudden, often unexpected bills can seem overwhelming for you and your family. John Muir Health is pleased to offer a number of programs to help you with the bills for the services you have received through our hospitals.

Click here to dowload our brochure to learn more about our program.

(Posted September 25, 2008)