Suit alleges Saint Joseph's Hospital overcharged thousands of patients

Saint Joseph's Hospital of Atlanta Inc. engaged in a systematic scheme to inappropriately admit and overcharge thousands of patients, according to a suit filed Thursday against the hospital by a former patient.

The lawsuit, which alleges breach of contract, breach of implied contractual duties of good faith and fair dealing, unjust enrichment, and breach of fiduciary duty, seeks unspecified punitive damages. Page Perry LLC, the law firm that filed suit, is seeking class-action status on behalf of thousands of patients overbilled by the practice.

Saint Joseph's executives could not be reached for comment.

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Former Saint Joseph's patient Steven Lamb of Snellville, Ga., alleged that a carotid artery stent procedure he underwent in 2005 kept him admitted on an "inpatient" basis for two days -- about twice as long as was medically necessary and at a more costly rate than an "outpatient visit," which typically is accomplished in hours.

"In order to increase revenues, and thus profitability, [Saint Joseph's] engaged in a widespread and systematic scheme to admit to inpatient status patients who did not otherwise meet inpatient admission criteria and then issue charges and bills for such inpatient services accordingly," the suit said. "This scheme was well known to [Saint Joseph's] management, administration, staff and contractors, if not also its board of directors. Moreover, [Saint Joseph's] management and administration actively concealed such practices."

Lamb is represented by attorneys James M. Evangelista and David J. Worley, of Page Perry in Atlanta, and James A. Dunlap Jr. of Atlanta. The lawyers want the lawsuit certified as a class action to include all patients of the hospital system between Jan. 1, 2000 and Dec. 21, 2007 who were improperly admitted to Saint Joseph's under inpatient status.

In December, Saint Joseph's Health System reached an agreement with the U. S. Attorney's Office to pay $26 million to settle allegations raised in a "whistleblower" lawsuit involving incorrect Medicare billing practices. The new lawsuit seeks to recover costs billed to individual patients.