Primetime Live investigative report on alleged nonprofit hospital scam

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Friday, December 17, 2004
Special to The Mississippi Press
OXFORD -- "ABC Primetime Live," a national investigative news program, aired a special report examining allegations of widespread and rampant price gouging against the uninsured and the use of abusive collection methods by nonprofit hospitals Thursday evening. Chris Cuomo, ABC news correspondent and "Primetime Live Co-Anchor," hosted the show that aired at 9 p.m. CST.

The program focused on nonprofit hospitals treatment of uninsured patients and included interviews with patient plaintiffs from St. Dominics hospital in Jackson, Mississippi and Phoebe Putney hospital in Albany, Ga. Both hospitals are defendants in the litigation.

The story of the two whistleblowers -- a surgeon and a CPA who first uncovered the hospital billing abuses at Phoebe Putney and other hospitals across the country -- were also a main focus of the show. The segment documented the personal intimidation, threats to family members, and the lawsuit that Phoebe Putney subjected the whistleblowers to in an attempt to stop them from revealing the hospitals abuses.

Attorney Richard Scruggs, a native of Pascagoula whose involvement came after the whistleblowers tried repeatedly and without success to get the attention of government regulators on this issue, appeared in the program as well. He is currently working with a team of lawyers around the nation to reform the industry and prevent nonprofit hospitals from continuing billing abuses against the 45 million uninsured in the United States. He has filed 48 lawsuits in 23 states to date.

http://www.gulflive.com/news/mississippipress/index.ssf?/base/news/110328214022170.xml


Money Magazine Names Hospital Whistleblowers Dr. John Bagnato and Charles Rehberg 'Class Acts of 2004'

The Scruggs Law Firm congratulates Dr. John Bagnato and Charles Rehberg, the two whistleblowers who have been instrumental in bringing hospital billing abuses into the public eye, for being named by Money Magazine as "Class Acts of 2004."
Money Magazine chose Dr. Bagnato and Mr. Rehberg as one of the dozen of "unsung people" who "made a significant difference to your family's well- being" in 2004. The accolade is part of Money Magazine's December 2004 issue.

Last year, Dr. Bagnato, a surgeon, and Mr. Rehberg, a CPA, discovered that their community hospital Phoebe Putney in Albany, Georgia was carrying out a calculated scheme in which it was reaping tens of millions of dollars in tax exemptions from the Albany community while failing to fulfill its obligation to provide charity care to uninsured patients. In fact, they found that uninsured patients were being charged significantly more than any other patient group, and the hospital was engaging in predatory collection techniques, including lawsuits, wage garnishment and mortgage liens when uninsured patients could not afford to pay the inflated bills.

http://biz.yahoo.com/prnews/041213/nym149_1.html