Mississippi Scruggs

North Mississippi Health Services Withdraws from Settlement Talks with Plaintiffs’ Attorney Group on Discounts for Uninsured Patients
NMHS Press Release | 4.6.05

TUPELO, Miss. - Almost seven months after entering a memorandum of understanding (MOU) - a frame work for a potential settlement - with a plaintiff’s attorney group headed by the Scruggs Law Firm to settle concerns over discounts provided to uninsured patients, North Mississippi Health Services has reached an impasse in its attempt to reach a final agreement with respect to charity discounted care to the uninsured. However, NMHS has also announced that many of the terms found in the MOU are now included in its Charity Care and other policies. …

John Heer, NMHS president and chief executive officer said, “Since the announcement of the MOU, the landscape has changed. NMHS has experienced a significant increase in the volume of charity care. It appears that patients are bypassing other hospitals in the 24-county service area and coming to NMHS to receive charity care.” Prior to the MOU, NMHS had a charity policy in place and has continued to use those charity guidelines. In fiscal year 2004, NMHS provided $45 million in charity care, which represents 4.32 percent of NMHS’ gross charges and is larger than NMHS’ bottom line. …

“Our organization is dedicated to providing quality health care to everyone, whether they have insurance or not,” Heer said. “We are withdrawing from these negotiations because the proposed terms would have a devastating economic impact on our organization and the services we provide. We have given and will continue to provide charity care to those who meet our charity care guidelines.”

Looks like NMHS folded their cards too soon. See here and here.