Not-For-Profit Hospitals Class Action Litigation Press Release
Date: Thursday, August 12, 2004 at 7:00 AM CDT
Contact: Richard Scruggs
Scruggs Law Firm, P.A.
(662) 281-1212Rating Agencies’ Positive Analysis of North Mississippi Health Services Underscores Financial Viability of Settlement with Uninsured PatientsRating Agencies’ Positive Analysis of North Mississippi Health Services Underscores Financial Viability of Settlement with Uninsured Patients
For Immediate Release
Oxford, Mississippi, August 12, 2004 — “Fitch’s comments today and Standard & Poor’s comments yesterday on North Mississippi Health Services’ settlement with uninsured patients speak to the financial viability of this settlement. We urge all nonprofit hospitals to review the comments by these two rating services. Their comments contrast sharply with the self-interested statement of the American Hospital Association (AHA), which is a defendant in the nonprofit hospital lawsuits. It is our strong conviction that the North Mississippi Health Services settlement is a win-win for both the uninsured patients and the hospital without impairing the hospital’s financial viability,” said Richard Scruggs, lead attorney in national litigation that is being brought against nonprofit hospitals for failing to fulfill their obligation to provide charity to uninsured patients.”
Mr. Scruggs stated, “As Fitch writes in its report, it ‘considers the potential financial impact relatively immaterial as most hospitals collect only a very small portion of uninsured patients’ bills… Fitch believes the lawsuits will ultimately result in more comprehensive reporting of charity care by hospitals and will also compel non-profit hospitals to review charge and collection policies to uninsured patients’.”
Mr. Scruggs also pointed out that S&P has affirmed its ‘AA’ long-term rating on the Mississippi Hospital Equipment and Facilities Authority’s bonds, issued for North Mississippi Health Services after taking into consideration, among other things, the settlement.
Mr. Scruggs said, “We strongly believe that the public has the right to expect, and indeed demand, that the nonprofit hospitals meet their obligations to provide charitable care to uninsured patients for which they receive substantial tax benefits. The rating agencies’ comments affirm that the North Mississippi settlement, while not necessarily a one-size, fits-all solution, can certainly be used by nonprofit hospitals around the country as a template to fashion a formula to provide charity care to uninsured patients.”
To learn more about that the class action lawsuits by uninsured patients against nonprofit hospital systems and nonprofit hospitals, or to obtain a copy of any of the complaints filed to date, please visit www.nfplitigation.com.