Providence to distribute over $20 M in refunds, $130 M in debt relief after AG lawsuit
OLYMPIA, Wash. - Providence, one of the nation's largest health care systems, will provide more than $20 million in refunds for patients who were billed for services despite qualifying for free or reduced-cost health care.
The lawsuit, headed by Washington Attorney General Bob Ferguson, requires Providence to forgive more than $137 million in medical debt, with around 34,229 individuals qualifying for this debt forgiveness.
AG Ferguson filed an enforcement action against Providence for making patients pay their medical bills instead of notifying them of their eligibility for financial assistance. The lawsuit was against all hospitals operated by Providence and its Washington affiliates, including Swedish Medical Center and Kadlec Regional Medical Center.
"Washingtonians concerned about the rising cost of health care should know that my team is fighting to enforce critical protections that improve affordability," Ferguson said. "We won’t stop. Most Washingtonians are eligible for significant discounts on their out-of-pocket hospital expenses, including co-pays and deductibles. We will ensure that hospitals honor this important law."
Providence must now pay $20.6 million in direct refunds, including 12% interest on all payments, to 34,229 patients. On average, most patients receiving refunds will get around $478, but it ranges from $1 to $293,000.
In total, the refunds and debt relief are projected to help 99,446 individuals.
Providence is also ordered to implement new systems to determine whether patients are eligible for financial assistance before attempting to collect payments from them.
This case is one of four that are part of Ferguson's Health Care Initiative. The others include:
- PeaceHealth, which agreed to pay up to $13.4 million to more than 15,000 low-income patients, including $4.2 million in direct refunds
- CHI Franciscan, which provided $41 million in debt relief and $1.8 million in refunds
- Capital Medical Center, which paid at least $250,000 in refunds and provided more than $131,000 in debt relief
For more information about Washington’s medical financial assistance law, including tools to see if you qualify, visit affordablehospital.wa.gov.
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