Hospitals

Could other hospitals get embroiled in Accretive’s debt collection scandal?

Earlier this week Minnesota Attorney General Lori Swanson disclosed that  Chicago-based Accretive Health, a debt collection […]

Earlier this week Minnesota Attorney General Lori Swanson disclosed that  Chicago-based Accretive Health, a debt collection agency allegedly harassed patients at Fairview Health Services demanding patients pay before receiving emergency care.

That is against state and federal laws. In some cases, the agency’s debt collectors functioned inside hospitals and didn’t disclose their identity.

Swanson said that the nonprofit Fairview which hired Accretive Health may have called its tax-exempt status into question in hiring the debt collector. That should be a warning sign to all nonprofit hospitals (and indeed to all hospitals who don’t want their reputation dragged through the mud) who want to work with debt collectors.

Fairview’s CEO is saying sorry, reported the Star Tribune, and has ended a contract with the Accretive Health, although other cost analysis contracts are ongoing. But the question remains how many hospitals are knowingly or unknowingly taking part in breaking the law and/or using such strong-arm tactics?

The answer may come through a Congressional investigation into whether Accretive broke the law by demanding payment from patients before they receive care.

Reportedly, Accretive Health had contracts with 50 hospitals.

 [Photo Credit: freedigitalphotos user Naypong]

 

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