Court Upholds Dismissal Of Medical Lawsuits

The South Dakota Supreme Court is still saying “no” and is upholding its decision to dismiss several class-action lawsuits alleging unreasonable charges to patients of three of the state’s largest hospital systems.

The suits were dismissed by circuit judges who ruled that the patients had no legal grounds to pursue their claims. The high court, in a unanimous vote, refused to reinstate the lawsuits.

Since the prices were fixed and could be determined, courts cannot calculate different prices, the high court said.

The class action suits argued that the hospitals breached an implied contract when it charged more than an implied reasonable rate and violated a state law on deceptive trade practices.

Lawyers for the hospital systems, of course, say that the hospitals have done nothing wrong. There is no law, they argue, requiring that uninsured patients get discounted rates. Insurance companies negotiate rates and government programs set prices for Medicare and Medicaid patients, they said.

The Supreme Court also rejected the patients’ claims on deceptive trade practices, ruling that the hospitals had no duty to give uninsured patients the same discounts given to those with insurance or coverage under government programs.