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Avera Health Sued by Uninsured Patients Who Complain of Over-Charging

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Case ID: 3779 | Drugs / Medical | 10/12/2004

A class action lawsuit has been filed on behalf of uninsured patients who received and were billed for medical care by any hospital within the South Dakota based Avera Health network of hospitals. The suit contends that Avera billed its uninsured patients at rates far in excess of the rates employed for insured patients and that this practice was and is both discriminatory and illegal.

The complaint further states that Avera enjoys non profit status and the associated tax benefits but in fact is highly profitable, with net assets of over 44 million dollars in 2003. The complaint further alleges that Avera’s collection practices are unreasonable and abusive.

Plaintiffs seek financial damages and injunctive relief, including the placement of all assets accrued by using unfair and deceptive practices into a constructive trust for the benefit of the plaintiffs.


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