In a decisive crackdown on medical debt collection abuses, King County Superior Court Judge Sean O'Donnell has slapped debt collector Optimum Outcomes with an $827,000 fine. The ruling, a culmination of Washington State Attorney General Bob Ferguson’s charity care lawsuit against Providence Health & Services and associated debt collectors, cites over 82,000 infractions of the Consumer Protection Act. According to an announcement from AG Ferguson's office, these violations stem from the company’s failure to inform Washington patients of their rights concerning medical debt collection.
The debt collector, which neglected to provide essential information about financial assistance in its collection letters, collected payments unlawfully. This oversight led to patients, many of whom likely qualified for financial assistance, being shorn of opportunities to learn about and access the help they needed with their hospital bills. Attorney General Ferguson stated, “This legal victory resolves the largest charity care lawsuit in American history." "We delivered economic justice for Washingtonians in the form of corporate reforms and more than $160 million in direct payments, debt forgiveness, and civil penalties," he said in a statement to the media.
Judge O'Donnell's verdict dictates that Optimum Outcomes must fork over $10 for each violation, funneling a total of $827,290 to the state general fund. Furthermore, the debt collector is on the hook for Attorney General’s Office case costs, which exceed $400,000, with the exact reimbursement amount to be established in future proceedings. Necessary reforms must also be enacted by Optimum to align with Washington law.
As part of the legal resolution with Providence, eligible but previously uninformed patients who paid for their care will be refunded, interest included. Patients who incur debt when eligible for financial assistance will get their debt wiped clear. “Patients who were likely eligible for financial assistance but were sent to collections and paid for their care will receive refunds, including interest,” Ferguson said, explaining how the lives of innocent patients, burdened by medical debt, will see a turnaround due to the resolution. The team that sealed this victory for the Attorney General's Office includes Assistant Attorney General Audrey Udashen, Will O’Connor, and several others, complemented by a skilled group of paralegals and legal assistants.
This win contributes to a record of consumer protection triumphs under Ferguson's tenure, which has commenced since January 2013. The office boasts 808 successful Consumer Protection Act lawsuits, with a mere two losses—a testament to the sharp legal acumen prosecuting corporate overreach and protecting residents' pockets in Washington State.
