Hispanic Consumer Advocacy Group Charges that Catholic Hospitals Overcharge Uninsured
Ambar Espinoza     [Photo]

A nonprofit consumer advocacy organization assisting Latinos nationwide has released a lengthy report charging that a major group of Catholic hospitals has made millions of dollars by overpricing uninsured patients for health care services.

It reported its findings Nov. 15 during the annual meeting of the U.S. Conference of Catholic Bishops held in Washington, D.C.

The 12-page document was shared with capital reporters by the Los Angeles-based Consejo de Latinos Unidos, which has been investigating price gouging among hospitals for the past five years. It alleges that many Catholic hospitals are billing uninsured patients far more than they charge Medicare or private health insurance companies.

As extreme examples, it cited $20,296 in charges billed to a patient at Catholic Healthcare West Hospital in Southern California where the charge to Medicare was $3,994 and $74,395 to an Our Lady of Resurrection patient where the charge to Medicare was $6,121.

K.B. Forbes, executive director of the nonprofit, called on the assembled bishops to use their "moral authority" to persuade the hospitals to use fair billing and collection practices in line with their Catholic missions.

Contacted by Hispanic Link News Service, Fred Caesar, senior director of public affairs for the Catholic Health Association of the United States, stated, "We cannot respond to individual cases."

The report focused on seven Catholic hospital systems that operate more than 150 hospitals altogether in approximately 20 states: Ascension Health, Catholic Health Initiatives, Catholic Healthcare Partners, Catholic Healthcare West, Providence Health System, SSM Healthcare and Trinity Health. The report charged that the systems made more than $2 billion in tax-free profits in 2004.

Sister Carol Keehan, president and chief executive officer of CHA, responded to those allegations with a press statement: "The nation's turbulent health care system forces us to maintain large financial reserves in order to ensure that we can operate in the future."

Most persons who file complaints on price gouging are middle-class people who own homes and have decent-paying jobs, but cannot afford private insurance, said Forbes, adding "We are sick and tired of hospitals lying to the general public, telling them they have discounted plans for the uninsured."

According to Keehan, the Catholic healthcare system offers various programs that ensure the Latino community has affordable access to quality healthcare, such as Catholic HealthCare West's Para Tu Salud, in Los Angeles and St. Joseph Medical Center's CareVan, in Stockton, Calif.

"Recent attention has generated an unfortunate perception that all uninsured patients have not received discounts," said Keehan. "The fact is that in most cases, payments have been negotiated with patients to establish reasonable billing terms. There may have been isolated cases. Anecdotes are interesting, but not the norm in Catholic health care."

Forbes acknowledged that other non-Catholic hospitals are also guilty of price-gouging the uninsured and Latinos are not the only victims.

He told Hispanic Link, however, that his nonprofit is particularly focused on Catholic hospitals because their billing practices impact Latinos the most. Nine out of 10 Latinos are Catholic, and one in three Latinos are uninsured, Forbes said.

"The Catholic health ministry is proud of its record in the Latino community and will not shy away from defending itself against baseless attacks," Keehan said.

In June 2004, the subcommittees on oversight of both the U.S. House Committee on Ways and Means, and Energy and Commerce held the first series of hearings looking at how hospitals bill the uninsured. Last May, the Senate Finance Committee held a hearing to examine activities related to nonprofit hospitals' tax exempt status.

(Ambar Espinoza is a reporter with Hispanic Link News Service based in Washington, D.C. She may be reached by e-mail at editor@hispaniclink.org)

© 2005 Hispanic Link News Service
11/27/05
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