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Gateway Medical Center Seeks Dismissal from Class Action

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Case ID: 4438 | Drugs / Medical | 02/27/2006

A class action complaint was filed against Gateway Regional Medical Center in Granite City, Illinois alleging the hospital inflated charges for uninsured patients.

The class action complaint was filed by Illinois residents Kimberly Chronister, Lisa Golino, Julia Holman, Linda Hughes, and Robert Orasco, who all accuse the hospital of charging unfair and unreasonable prices for medical care.

"Gateway charged more than triple what it received for the same services from the vast majority of their other patients, often triple what governmental agencies paid under Medicare and Medicaid; and more than triple the actual cost of the care," according to the suit filed by the plaintiffs' attorney. Fees charged to the uninsured or underinsured "bore no rational relationship to actual costs and were not 'regular' or 'usual and customary'," according to their complaint.

The class claims the only group required to pay the alleged inflated rates are those who do not qualify for Medicaid or Medicare, or are not sufficiently covered by health insurance, often because of financial inability.

Attorneys for Gateway filed a motion to dismiss on June 15, 2005, and it will be heard on on September 26, 2005. Circuit Judge Daniel Stack will hear the case in place of the retired Judge Philip Kardis.

Plaintiff Chronister alleges that on Oct. 16, 2003, her son was admitted into the emergency room at Gateway for a psychotic episode, and released four days later. At the time, Chronister did not have health insurance. She claims that she was required to sign several documents, including an agreement to pay the regular rates of the facility.

Upon her son's release, she received a bill dated Oct. 26, 2003, for $6,596.75, and claims she was charged significantly more than what they would accept from a vast majority of their patients for identical services. She was sued by Gateway on April 21 for the amount of $6596.75 plus attorney fees in the amount of $2,198.89.

All of the named plaintiffs have been sued by Gateway seeking to recover money for medical services provided to them or their minor children.

In the 10-count class action suit, the plaintiffs allege Gateway was in violation of the Illinois Consumer Fraud and Deceptive Business Practices Act, constructive fraud, fraudulent misrepresentation, breach of contract, breach of good faith and fair dealing, unjust enrichment, theory of imposition, unconscionability, civil conspiracy and declaratory judgment.

The class also alleges that if they would have known the truth about being charged regular rates for medical services, they would not have accepted the services that Gateway provided, or would have negotiated the charges before receiving the services.


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