Trends in Hospital Lawsuits Filed Against Patients for Unpaid Bills Following Published Research About This Activity

JAMA Netw Open. 2021 Aug 2;4(8):e2121926. doi: 10.1001/jamanetworkopen.2021.21926.

Abstract

Importance: Suing patients and garnishing their wages for unpaid medical bills can be a predatory form of financial activity that may be inconsistent with the mission of a hospital. Many hospitals in the state of Virginia were discovered to be suing patients for unpaid medical bills, as first presented in a 2019 research article that launched 2.5 months of media attention on hospital billing practices and a grassroots public demand for hospitals to stop the practice.

Objective: To evaluate the association of a research publication and subsequent media coverage with the number of hospital lawsuits filed against patients for unpaid medical bills.

Design, setting, and participants: This cross-sectional study of Virginia hospitals that sued patients for unpaid medical bills used an interrupted time series analysis. Data on hospitals suing patients for unpaid medical bills were collected during a preintervention period (June 25, 2018, to June 24, 2019), an intervention period (June 25, 2019, to September 10, 2019), and a postintervention period (September 11, 2019, to September 10, 2020).

Exposures: Publication of a research article and subsequent media coverage.

Main outcomes and measures: The total number of warrant in debt and wage garnishment lawsuits filed by Virginia hospitals and the frequency of those lawsuits filed before, during, and after the intervention period on a weekly basis.

Results: A total of 50 387 lawsuits, filed by 67 Virginia hospitals, were included; 33 204 (65.9%) were warrant in debt lawsuits, and 17 183 (34.1%) were wage garnishment lawsuits. From the preintervention period to the postintervention period, there was a 59% decrease in the number of lawsuits filed (from 30 760 lawsuits to 12 510 lawsuits), a 55% decrease in the number of warrant in debt cases filed (from 19 329 to 8651), a 66% decrease in the number of wage garnishments filed (from 11 431 to 3859), and a 64% decrease in the dollar amount pursued in court (from $38 700 209 to $13 960 300). During the study period, 11 hospitals banned the practice of suing patients for unpaid medical bills. The interrupted time series analysis showed a significant decrease of 5% (incidence rate ratio, 0.95; 95% CI, 0.94-0.96) in the total weekly number of lawsuits in the postintervention period.

Conclusions and relevance: The findings of this study suggest that research leading to public awareness can shift hospital billing practices.

Publication types

  • Research Support, Non-U.S. Gov't

MeSH terms

  • Adult
  • Aged
  • Aged, 80 and over
  • Cross-Sectional Studies
  • Female
  • Financial Management, Hospital / statistics & numerical data*
  • Financial Management, Hospital / trends*
  • Forecasting
  • Hospital Costs / legislation & jurisprudence*
  • Hospital Costs / statistics & numerical data*
  • Humans
  • Legislation, Hospital / economics*
  • Legislation, Hospital / statistics & numerical data*
  • Legislation, Hospital / trends*
  • Male
  • Mass Media / statistics & numerical data
  • Middle Aged
  • Virginia