Corporate News and Events

Federal Lawsuit Against Trinity Health Dismissed

Novi, Michigan (October 24, 2005) – A U.S. District Court Judge in Detroit dismissed a class-action lawsuit filed last year against Trinity Health that alleged charging excessive fees to uninsured patients.

Judge Gerald E. Rosen dismissed the lawsuit against Trinity Health Corp. and Trinity Health-Michigan Inc. with prejudice so that it cannot be re-filed, and declined to assert jurisdiction over the state claims. The suit was part of a national wave of lawsuits filed across the country against more than 400 nonprofit hospitals, many of which have been dismissed.

"We are very pleased with the federal court’s decision," said Dane Hale, senior vice president and general counsel for Trinity Health, which is the parent organization of 44 hospitals, including 15 in Michigan. “As a Catholic-sponsored not-for-profit health system, Trinity Health wants to provide every assurance that we are devoted to caring for everyone, regardless of ability to pay.“

In recognition of the growing number of uninsured patients, and even of insured patients with high deductibles or co-payments, Trinity Health has policies to address financial support, billing and collection activities, including full write-off of charges for patients with family income below the federal poverty level.

In fiscal year 2004 alone, the cost of the charity care and community benefits that Trinity Health provided exceeded $477 million. Nearly $56 million of total community benefit represented the cost of providing charity care services to the uninsured and underinsured populations.

“The issue of 46 million uninsured Americans is a national problem that we, as a society, must solve together,” said Hale. “Hospitals and health systems have an important role in the solution, but can’t solve it alone. A misdirected lawsuit was not the answer.”