Lawsuit Claims Charity Care Abuses

Swedish Covenant Hospital in Chicago is being sued by two patients who claim the facility failed to provide them appropriate charity care.

The suit, filed by the Legal Assistance Foundation of Metropolitan Chicago, claims that Swedish Covenant made the patients fill out multiple application forms while demanding cash payment from one and threatening to send another to a collection agency. It accused the hospital of unfair practices under the state's consumer fraud law. It seeks $50,000 in punitive damages and an end to what it claims is a systematic attempt to collect payments from even the poorest of patients.

At a press conference held last week, ALF Attorney Alan Alop noted that Swedish Covenant receives annual tax breaks of about $8 million and should provide a more reliable system of charity care in return.

Located on Chicago’s North Side, Swedish Covenant provided slightly more than $6 million in charity care to patients in 2011. That comprises approximately 3% of its gross revenues.

Illinois Attorney General Lisa Madigan's office is currently rewriting the rules for charity care, after the Legislature passed a law requiring that charity care policies be more standardized. And last year, the Department of Revenue denied property tax exemptions to three hospitals, claiming they did not provide enough charity care.