Healthcare Matters

We recently reported on the actions taken by Lori Swanson, Minnesota’s attorney general, against Accretive Health, a healthcare consumer debt collection company. Her report blisters Accretive’s business practices. Briefly, it alleges that Accretive Health employees masqueraded as hospital staff and badgered patients at bedside attempting to collect on past due bills. Even worse, it says that ER patients were told that their care could be withheld (until they paid). Finally, and in stark violation of HIPPA, Accretive’s provider clients are said to have shared confidential patient information with the firm to assist in its debt collection efforts.

Not surprisingly, Accretive is fighting back. And it’s getting support from some rather curious places. For example, a week ago, Chicago Mayor Rahm Emanuel (D), President Obama’s former White House chief of staff, defended the company, asking Swanson to back off. And now, hints at a counter suit against Swanson are starting to circulate. Shockingly, it turns out that last year Emanuel led the charge for Chicago’s City Council to approve more than $6 million in tax increment financing to Accretive Health. Lots of other quid pro quos in the deal too. Can you spell C-H-I-C-A-G-O style P-O-L-I-T-I-C-S? The best part is that several members of the Council who originally approved the measure and have now become aware of the scandal have been reprimanded for having the gall to suggest that perhaps the monies should be withheld until the matter in Minnesota is settled.

To her credit, Ms. Swanson is not backing down. “The patients in Minnesota who suffered these indignities will be heard.” Not to worry, she’s got U.S. Senator Al Franken (D-Minn.) in her corner. I know what you’re thinking; you’re already liking her chances a lot better. Several weeks ago, Senator Franken questioned Accretive and couldn’t even get them to respond. In fact, Accretive just today offered up its answers for the senator.

Ms. Swanson had originally planned to hold off on her action against Accretive until she had the backing of other state AGs where similar offenses with Accretive provider clients were reported, but apparently, she didn’t have the patience –or support.

This is going to be interesting. Any bets on the outcome?

—Tom Finn