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GRADY HOSPITAL LIEN LITIGATION
On May 17, 2006 Daniel Mimbs, Jose Antonio Garcia and
Yvonne Hall ("Plaintiffs"), individually and on
behalf of all other persons similarly situated, filed a
class action lawsuit against the Fulton–Dekalb Hospital
Authority, d/b/a Grady Memorial Hospital ("Hospital") and Grady Health Systems (collectively,
"Grady") in the Superior Court of Fulton County, Civil
Action No. 2006CV1107041. The
Plaintiffs contend that (i) they received medical
treatment at the Hospital for injuries received in
automobile and other accidents, and that each had valid
health insurance covering the cost of their treatment;
(ii) instead of billing and accepting payment in full
from Plaintiffs’ health insurers, as required by Grady’s
provider agreements with Plaintiffs’ health insurers,
Grady filed and pursued collection of hospital liens
asserted against the Plaintiffs’
third-party liability recoveries; and (iii) Grady’s
actions violate both Georgia’s hospital lien statute, O.C.G.A. § 44-14-170 et seq., and its provider
agreements with Plaintiffs’ health insurers.
Grady answered the suit, denying that its conduct was
in any way wrongful or illegal, asserting numerous
defenses to the Plaintiffs' claims and denying the litigation should proceed as a class action. Grady also
filed a motion to dismiss the litigation, which remains
pending with the Court.
After extensive factual and legal investigations of the
claims asserted against Grady and arms-length
negotiations with counsel for Grady, attorneys
representing the Plaintiffs and Settlement Class
(defined below) entered into an agreement on August 1,
2007 for a proposed
settlement of the litigation, subject to Court approval (the "Settlement"). The
Settlement applies to the following group of individuals
(the "Settlement Class"):
ALL
PERSONS TREATED AT GRADY MEMORIAL HOSPITAL (THE
“HOSPITAL”) IN ATLANTA, GEORGIA FROM MAY 17, 2002
THROUGH JULY 31, 2007 (THE “CLASS PERIOD”) FOR
ACCIDENT-RELATED INJURIES WHO HAD PRIVATE HEALTH
INSURANCE COVERING THEIR TREATMENT AND AGAINST WHOM THE
HOSPITAL ASSERTED OR FILED A LIEN. EXCLUDED FROM THE
SETTLEMENT CLASS ARE (I) GRADY AND ITS OFFICERS,
DIRECTORS, EMPLOYEES, (B) THE IMMEDIATE FAMILY MEMBERS
OF GRADY’S OFFICERS, DIRECTORS AND EMPLOYEES, AND (III)
ANY PATIENTS WHOSE HEALTH INSURANCE PLAN WAS NOT COVERED
UNDER AN AGREEMENT WITH GRADY REQUIRING IT TO SEEK AND
ACCEPT PLAN PAYMENTS FOR TREATMENT PROVIDED TO THE
PATIENT.
Following final approval of the Settlement by the Court,
Grady has agreed to certain injunctive relief detailed
in the Settlement Agreement that, among other things,
prohibits Grady from filing hospital liens against
patients who are members or subscribers of health
insurance plans that have provider agreements with Grady
and afford valid coverage for the treatment of patients’
accident related injuries at the Hospital. The
Settlement also makes available cash benefits to
Settlement Class members who timely submit a properly
completed and signed claim form and otherwise comply
with the claims process outlined in the Settlement. Such
benefits include a cash payment of $200 to each Settlement Class member against whom
Grady asserted, filed and/or pursued collection under a
hospital lien during the Class Period. Settlement Class
members who were required to pay Grady money from an
accident settlement due to a hospital lien filed by
Grady during the Class Period are
eligible to receive a cash refund of the amount collected by Grady
(or its agents), up to a maximum payment of $15,000.
The deadline for Settlement Class members to make a
claim for cash benefits is
November 29,
2007. To get the claim form and information about how
to file a claim, click
here. For more information about the lawsuit and
Settlement, see the Plaintiffs' revised complaint
here
and the settlement agreement
here.
If you believe you are a member of the Settlement Class
entitled to benefits, you should carefully review the
notice and claim form. After doing so, if you have further questions about the Settlement or
your rights contact
Jay Brownstein or
Kevin Little, or email our firm using the Quick
Contact form below.
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