Our Point of View

May 16 2008

Judge Issues Temporary Restraining Order in Case Regarding Prime Healthcare

There's good news for several thousand Kaiser Permanente members who have received bills from Prime Healthcare and calls from its collection agency demanding payment for hospital services received at Prime Healthcare facilities. A Los Angeles County Court has issued a temporary restraining order to halt those bill collection activities.

During the hearing, Judge James Chalfant questioned Prime Healthcare's tactics in sending letters to Kaiser Permanente members, "...there can be no motivation other than harassment and political issues...You've got no reason to contact their members."

California's Department of Managed Health Care also weighed in with a written declaration to the court, "The DMHC supports Kaiser in its request for injunctive relief to keep its enrollees out of the middle of the claim payment dispute between Kaiser and defendants regarding the emergency services provided by defendants."

In the temporary restraining order, the court ruled that Prime Healthcare must stop collection efforts against Kaiser Permanente members and must not report any of them to credit agencies.

"We're pleased that the court stepped in to protect our members from this balance billing action by Prime Healthcare," said Ben Chu, MD, president of Kaiser Permanente's Southern California region. "It should never have come to this. Individual patients should not have been faced with this despicable threat."

A hearing to make this a permanent injunction against the Prime Healthcare action will be held on June 12 in Los Angeles.