A federal class-action lawsuit has slammed St. Charles Health System with allegations of failing to offer requisite financial assistance to a patient eligible under Oregon's law and instead, sending her bill to a debt collector. The suit, filed on behalf of patient Kristine Reiger, accused both St. Charles and Ray Klein Inc., the debt collector, of unlawful practices, as reported by Portland Business Journal.
Despite having a meager income of approximately $25,000, which qualified her for financial assistance, Reiger was confronted with a $3,410 bill from St. Charles for medical services rendered after a May 2022 car crash. According to the lawsuit, her attempts to arrange a payment plan with the hospital went unanswered, and her debt was referred to collections without an income eligibility check. This move by the hospital contradicts Oregon laws requiring hospitals, seen in a Central Oregon Daily report, to consult a provided financial assistance policy to patients earning up to 400% of the federal poverty level, and make "minimum adjustments" to patient costs based on income.
Further complicating Reiger's financial distress, the suit claims that Ray Klein Inc. tacked on interest to her outstanding bill, which is prohibited under Oregon regulations for patients who qualify for financial assistance. The suits assert that St. Charles neglected to carry out an eligibility screening before involving the debt collector, amplifying financial strain on Reiger. A 2022 analysis by SEIU Local 49 found Oregon hospital systems' billing practices may be placing undue burdens on low-income patients and not adhering to the state's patient protection laws, as highlighted by the Portland Business Journal.
Meanwhile, St. Charles has defended its conduct. In a statement given to Central Oregon Daily, Kayley Mendenhall, a spokesperson for the health system, stated, "We have not received notice of this lawsuit being filed and therefore can’t comment on the specifics of the suit." Mendenhall emphasized that "Our teams work incredibly hard to make sure patients understand the financial assistance that is available to them" and reassured that St. Charles, which claims to provide about $120 million annually in unreimbursed care, believes in compliance with regulations.
The Oregon Health Authority stated last month that most Oregon hospitals met or exceeded their community benefit spending requirements in 2022, despite allegations against St. Charles, giving a mixed picture of compliance across the sector. Seeking redress for the alleged missteps, Reiger's lawsuit calls for a jury trial, unspecified damages plus legal costs, and that St. Charles implement proper screening before sending patients to collections, according to KTVZ. It also demands that Ray Klein stop collecting medical debt and interest from those who qualify for financial aid.
