Shriner v. ProMedica Health Sys.

CHARITY CARE

Shriner v. ProMedica Health Sys., No. 3:04CV7435 (N.D. Ohio Jan.
21, 2005)

An
uninsured patient brought a proposed class action suit against a health system
alleging third-party breach of contract, breach of contract between the health
system and patient, breach of duty of good faith and fair dealing, breach
of charitable trust, violation of the Ohio Consumer Sales Practice Act and
unjust enrichment. The patient also brought claims against the American Hospital
Association alleging civil conspiracy and aiding and abetting wrongful acts.

The patient claimed that, by virtue of accepting its tax-exempt status as
a 501(c)(3) corporation, the health system entered into a contract to keep
its emergency room open to all patients regardless of their ability to pay,
provide affordable medical care to all patients, use its assets to provide
affordable medical care to uninsured patients, and not pursue outstanding medical
debt from its uninsured patients.

The United States District Court for the Northern District of Ohio dismissed
all of the federal law claims holding that 501(c)(3) does not create a contract,
the patient is not a third-party beneficiary, and the patient does not have
standing. The district court also dismissed the state law claims without prejudice
to refile in state court.