BUFFALO, N.Y. — A new report recently out is highlighting how some hospitals are placing liens against patients' homes following a medical debt judgement.
Some of those liens were placed by hospitals in Western New York.
The Community Service Society, an organization working to fight poverty in New York State, examined medical debt collection practices that some hospitals use, including nonprofit hospitals in New York.
These liens can be filed with as little as $1,900 in outstanding medical debt.
"The good news is most hospitals do not resort to filing liens on patients’ homes," said David R. Jones, president and CEO of the Community Service Society. "The bad news is the practice is common among certain hospital systems. These nonprofit, charitable hospitals must do a better job of complying with the state Hospital Financial Assistance law, by helping their patients deal with medical bills before they resort to extreme collection practices."
For their report, the CSS used self-reported data submitted to the New York State Department of Health by the hospitals themselves and found 56 non-profit hospitals in the state placed liens on 4,880 patients' homes in 2017 and 2018.
The CSS says those 56 hospitals also collected more than $442 million from the state's Indigent Care Pool (ICP). The Indigent Care Pool provides hospital financial assistance to patients, and offset costs associated with uncompensated care.
The majority of the liens placed were located in state's Capital District, but there were three Western New York Hospitals on the list, UPMC Chautauqua (formerly WCA Hospital), Jones Memorial Hospital in Allegany County and Erie County Medical Center (ECMC), which is located in Buffalo.
Of the WNY hospitals on the list, UPMC Chautauqua had the highest number of liens placed during that time period with 83.
2 On Your Side reached out to UPMC Chautauqua to get a response to the report. A spokesperson issued this statement: "As of 2017, when WCA (now UPMC Chautauqua) affiliated with UPMC, all liens were stopped."
ECMC, the only level one trauma center in Buffalo, filed three liens. In a statement, ECMC said, "Erie County Medical Center Corporation (ECMCC) resorts to a legal lien process to ensure that monies owed to a patient are appropriately paid by third parties to cover their medical expenses. Many situations are simply ECMCC’s attempt at securing monies owed from that third party, and not directly against the patient."
Jones Memorial Hospital also reported three liens, but say it was done by a collection agency. They issued this statement for their response:
"The placement of liens on property to pay hospital bills was the very rare practice of a collection agency employed by Jones that we have directed them to stop completely.
"As a safety net hospital, Jones Memorial cares for all patients regardless of ability to pay. We routinely help patients who do not have health insurance to enroll in Medicaid and other government programs. Our financial assistance program provides discounts and payment plans for patients whose hospital bill presents a financial hardship. Patients are offered referrals to the financial counselors for financial subsidy and payment plans by JMH as well as the collection agencies before any legal action takes place.
"Insurance providers, including the state and federal government, require hospitals to demonstrate due diligence in collecting charges from patients who are able to pay. As a last resort when patients with financial resources refuse to pay their bills, Jones assigns the debt to a collection agency. The agency will no longer attempt to place property liens for payment of a Jones Memorial hospital bill."
The Community Service Society says liens can affect a patient's credit report, limit their ability to sell or refinance homes or get a car loan.
There are 10 states that currently have laws that prevent hospitals from placing liens on patients' homes under any circumstances. New York State is not one of them right now. However, several NY lawmakers are hoping to change that.
New York State Senator Gustavo Rivera and Assemblyman Richard Gottfried, the respective chairs of the Senate and Assembly health committees, have introduced a bill that would forbid non-profit hospitals in New York from putting liens on patients’ homes due to medical debt collection. The bill would also ban wage garnishment in connection with collecting medical debt owed. The bill has 12 sponsors.
"Putting liens on patients' homes for an average claim of $1,900 is outrageous," said Assemblyman Gottfried (Assembly District 75). "I appreciate that most hospitals don't do this, but too many do and too many people's finances are destroyed by it. I commend the Community Service Society for this comprehensive, disturbing report on a practice that keeps people from seeking necessary health care and punishes them when they do. It's time to stop this."
The bill is currently in both the Senate and Assembly Judiciary Committees.
You can read the full report here:
