PORTLAND, Ore. ( KOIN ) – Providence Health & Services agreed to pay more than $157 million in refunds and debt relief to low-income Washingtonians over unlawful medical charges, Washington State Attorney General Bob Ferguson announced Thursday.
After an agreement was reached in King County Superior Court, Providence must forgive over $136 million in medical debt and more than $20 million in refunds to patients who were billed for services despite Providence knowing the patients qualified for free or reduced-cost care, Ferguson said.
The $157.8 million will go towards refunds, plus interest, and debt forgiveness to nearly 100,000 Washingtonians – and marks the largest resolution of its kind in the United States, Ferguson said.
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Washington state law mandates hospitals to provide medical financial assistance – also known as charity care – to residents based on their income level for insured and uninsured patients. Hospitals are also required to notify patients about financial assistance and must check if they are eligible for discounts on out-of-pocket expenses.