Hospital Hit With New Debt-Collection Accusations

by Paul Bass | March 21, 2006 2:21 PM | | Comments (4)

Yale-New Haven Hospital is in the for-profit debt collection business in a way that compromises its charitable mission, charges a new report issued by the hospital's critics. The report's release comes on the eve of a long-awaited legislative showdown Wednesday night on Yale-New Haven's plans to build a $430 million cancer center. Hospital spokesman Vin Petrini (pictured) dismissed the accusations as another tactic aimed to derail the cancer center.

The report was written by Jason McGahan, a researcher from the unions trying to organize a blue-collar union at the hospital. He works for the Hospital Debt Project of District 1199/SEUI. His report charges the hospital with a fundamental conflict of interest: Yale New Haven Health Services Corporation (YNHHSC), the hospital's parent company, owns 95 percent of Century Financial Services, the state's largest medical collection agency. So, the reports suggests, the hospital has a vested interest in hounding poor, sick people.

Click here to read the report in its entirety.

The new report also focuses on a second potential conflict of interest: Two of the subsidiary's directors also happen to work at Yale-New Haven -- and make decisions about collections.

One of them is William Gedge, a hospital senior vice-president.

"Gedge is responsible for the billing and collection departments of Yale-New Haven and Bridgeport Hospitals. David Wurcel is senior administrator of the billing and collection departments. This pair of top executives was ultimately responsible for Yale-New Haven Hospital’s charity care and collection reforms in the aftermath of the controversy," the report states.

The question of how Yale-New Haven pursues debts from poor and middle-class patients has dogged the hospital for years. The hospital says it has made dramatic strides in improving that process. Click here, here and here for background on the issue. Click here for information about how to get involved. Click here to read Yale-New Haven's side of this issue.

The report's conclusion: "Not only is Yale-New Haven Hospital an abusive debt-collector, it also owns the largest and most aggressive hospital-specific debt collection agency in the state, managed by the same men and women who serve as senior billing and collection executives for the hospital. In its quest to maximize the revenue from debt collection, Yale-New Haven seems to have left no stone unturned. Reason to question the hospital’s commitment to its charitable mission has never been lacking. But the Hospital seems to have succeeded in pushing the envelope even further beyond the bounds of civility, much less charity. Yale-New Haven Hospital will never reform of its own accord. The City of New Haven must step into the breach separating the low-income community from accessible health care."

William Gedge denied the charges leveled about both him and the hospital in the report.

"I'm not sure I would characterize it as a conflict of interest," he said.

Century Financial Services isn't "aggressive," Gedge said. It doesn't handle cases in which the hospital determines someone can afford to pay a bill but isn't. Lawyers do that. Century, he said, "sends out letters, and they make phone calls. This isn't a law firm. They don't have legal authority."

"Virtually all hospitals will refer an account to a collection agency," Gedge said. "The reason many hospitals participate and are part owners" of the company is to "pool resources and do it as one. I view it as purely an extension of the business office."

"I think people are growing very weary of these tactics," spokesman Petrini said. "People simply want to see this cancer center built without these tactics."

The union report's release comes a day before a special committee of the Board of Aldermen considers the hospital's controversial request. Disputes over traffic, parking, design, and community involvement have held up the proposal for a year. The biggest hold-up, though, has stemmed from a dispute between the hospital and District 1199 of the Service Employees International Union over the process for how blue-collar workers would choose whether to unionize. The fight has taken on the trappings of a political campaign, with the hospital investing heavily in billboards, telephone push-polls, and direct mail to New Haven residents calling on them to pressure lawmakers to approve the plan the way the hospital wants it.

A promising compromise offered by DeStefano failed to break the impasse. Wednesday night's aldermanic meeting, beginning at 6 p.m. at the Betsy Ross School, 150 Kimberly Ave., should signal whether a new compromise will emerge, or whether the fight will continue.

Comments

Posted by: charlie | March 21, 2006 3:23 PM

DeStefano's incompetence in getting the YNHH Cancer Center approved and under construction should be viewed as a serious offense - making him unfit not just to be governor, but for mayor as well.

Building the Center is a no-brainer. In fact, the City should be paying Yale-New Haven Hospital to build it. As a result of DeStefano and the Union's actions, thousands of residents have been suffering due to lack of jobs and health care. This is equal to murder.

The Union's motivations: having cozy jobs so they can move out to the suburbs, and not actually have to put in a full work day. They don't have the City's interest in mind in the least bit. The union bosses especially - almost all of them live out in the burbs somewhere. Not approving the Cancer Center IMMEDIATELY is the worst situation in the 400-year history of New Haven - yes, ten times worse than the demolition of the Oak Street neighborhood in the 1950s.

Posted by: Double-dealing Yale-New Haven | March 21, 2006 3:37 PM

I've read the full report and I have two questions:

Why is Yale-New Haven paying MILLIONS to its own collection agency as an independent contractor?

Where has Yale-New Haven put the MILLIONS in profits and stock dividends from its for-profit collection agency?


Posted by: TrueBlueCT | March 22, 2006 1:54 AM

I predict the Cancer Center won't be built, and that is unfortunate.

Do I blame New Haven, which is fundamentally predictable with regards to its NIMBYism and union activity?

Or do I blame the Yale Hospital and its arrogant attitude?

The answer is simple. The Hospital higher-ups just don't get it. That's what happens when you are blinded by privilege, and you raise your family in a suburban bubble.

The world won't end if the Cancer Center never gets built. Everyone will still get adequate treatment. But certainly it would be better for every cancer patient if top-level Yale research and blue-ribbon clinical practive were married via the proposal.

I suggest that every last YNHH executive start walking and talking in New Haven's neighborhoods. Even if they bring a (lol) bodyguard.

Posted by: JJ | March 22, 2006 12:31 PM

Folks just don't get it. A cancer center helps EVERYONE - not just folks who live in New Haven. The best doctors end up at Cancer Centers - why? - because that's where THE RESEARCH IS DONE! For cancer research to happen, people with cancer must be treated at a place that has the best facilities in one location - so research scientists look to cancer centers FIRST as a way of testing and researching new treatments. This is all stupid - IT'S A CANCER CENTER. IT'S DESIGNED TO HELP PEOPLE - YOUNG AND OLD - WHO HAVE CANCER AND FIND WAYS TO FIGHT THE DISEASE DOWN THE ROAD. Any other city or town (especially a city that JUST RAISED TAXES in all the "neighborhoods") would LOVE to have such a healing and research facility in their city - and make money in the process and lower taxes in "the neighborhoods." The best doctors would come here - which would mean patients would travel from far and wide - which would mean increased travel to the City - which would mean more jobs (outside of any union jobs at the center) - which would mean more family members travelling with sick loved ones who would stay in hotels and eat at restaurants - ETC, ETC, ETC! It's not all about the union and about "the neighborhoods" (whatever that means - I live in New Haven and I can't figure out why someone with cancer has to drive through a neighborhood to understand their own treatment.) Stop the crap and get the cancer center built already.

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