One of the first of more than 40 class-action lawsuits against hospitals alleging overcharging of uninsured patients was settled last week when the seven-hospital Providence Health System in Oregon agreed to refund or discount previous hospital bills for about 1,000 uninsured patients. The settlement also stipulates that the not-for-profit hospital chain give the same discounted rates to all patients for the next two years, according to an AP story. Providence now provides a discount for all uninsured patients of the same “preferred provider” rates paid by most of its insured patients. In the Portland area, that discount currently amounts to 32%. Plaintiffs’ attorney Brian Campf estimates that the settlement could result in millions of dollars in discounts for more than 40,000 patients. A Providence release states that the health system expects to provide charity care of more than $60 million in 2006, a 71% increase since 2004.
