Puget Sound Physicians to refund WA patients via $410K settlement

More than 1,300 Washington patients will receive compensation through a $410,000 settlement with Puget Sound Physicians after the Attorney General's Office found the emergency medicine provider repeatedly failed to issue refunds to a subset of patients who qualified for charity care.

The AGO has filed a consent decree in King County Superior Court that ends the investigation and ensures Puget Sound Physicians will follow the law going forward. Puget Sound Physicians provides emergency medicine services at Overlake Hospital in Bellevue. The investigation found the medical practice failed to refund some patients treated at the hospital over a more than five-year period through March of this year.

"Our state's charity care laws are designed to make sure people never forgo life-saving medical care out of fear that they can't afford it," Attorney General Nick Brown said. "When providers fail to follow the law, our consumer protection team stands up for Washington patients."

Washington's Charity Care Act requires hospitals to make financial assistance available for low-income patients to help with out-of-pocket medical costs. The act was first passed in 1989, but in 2022, Washington amended it to greatly expand the number of people eligible for financial assistance to an estimated 4 million Washingtonians. Financial assistance varies based on income and the size of a hospital, with the largest hospital systems in the state being responsible for providing more financial assistance than smaller ones. If a patient pays their bill but the hospital later approves their charity care application, the hospital is required to refund the money paid.

The settlement requires Puget Sound Physicians to issue refunds, including interest, to patients within 120 days. While the refund amount will depend on each individual's payment and medical care, the average amount is nearly $300. The agreement requires the medical practice to send a check to each patient's most current address and then follow up by phone if a check is returned as undeliverable or is not cashed after 90 days.

The AGO has filed a number of successful lawsuits and reached settlements with hospitals in recent years related to charity care. Confluence Health, which operates two hospitals in Central Washington, refunded more than $1.8 million to patients last year following a charity care investigation by our office.

For more information about Washington's medical financial assistance law, visit https://www.atg.wa.gov/charitycare.

Read the agreement.

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Washington's Attorney General serves the people and the state of Washington. As the state's largest law firm, the Attorney General's Office provides legal representation to every state agency, board, and commission in Washington. Additionally, the Office serves the people directly by enforcing consumer protection, civil rights, and environmental protection laws. The Office also prosecutes elder abuse, Medicaid fraud, and handles sexually violent predator cases in 38 of Washington's 39 counties. Visit www.atg.wa.gov to learn more.

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