Uninsured Hospital Litigation

Wallace & Graham has represented clients across the State of North Carolina who were treated at various hospitals but who did not have insurance. We brought these cases because we learned through investigation that patients who lack insurance are frequently charged two or three times as much as those who do have insurance.

In one of our cases, for example, our client sought treatment at Raleigh Community Hospital, which is owned by Duke University Health System, in July of 2002. She did not have health insurance sufficient to cover all her medical expenses.

Prior to obtaining treatment, she signed a consent form entitled “Consent and Conditions of Treatment.” Under a section titled “Payment Agreement,” the consent form included the following language:

“The undersigned individually obligates himself to the payment of the Hospital account incurred by the patient in accordance with the regular rates and terms of the Hospital at the time of patient's discharge.”

She alleged in the lawsuit that she was never provided with any information explaining or listing the “regular rates” of the hospital.

She also alleged that, unbeknownst to her at the time she signed the contract, defendant was charging greatly reduced rates to patients who had full insurance coverage through either government or private insurance programs.

The case came on for hearing before the Trial Court, which dismissed the case. We appealed it to the North Carolina Court of Appeals. We lost the case there too, as described in the Court of Appeals Opinion.

We continue to represent some of the patients who now face collection lawsuits by the hospitals since they still cannot pay their bills. We are representing these clients without charge, because we strongly believe in this issue as a social issue in our State. We believe that either the Courts, or the Legislature, or the Hospitals themselves, should take action to ensure that uninsured patients have a “level playing field.” It simply does not seem fair that a person who cannot afford to have insurance to cover their medical needs, is billed more for the same medical services, than other patients.