Bowden v. the Medical Center, Inc.

773 S.E.2d 692, 297 Ga. 285, 2015 Ga. LEXIS 436
Supreme Court of Georgia·Decided June 15, 2015·No. S14G1632·Published·Cited by 30 cases

Opinion

NAHMIAS, Justice.

Georgia law gives a hospital a lien for the reasonable charges for its care and treatment of an injured person against all causes of action accruing to that person on account of her injuries, and establishes a process for the hospital to perfect its lien for the amount claimed to be due. See OCGA §§ 44-14-470, 44-14-471. The Medical Center, Inc. (TMC) provided hospital care to Danielle Bowden, who did not have health insurance, after she was injured in a car wreck, billed her $21,409.59 for her care, and filed a hospital lien for that amount. In a subsequent lawsuit, Bowden sought to invalidate the lien on the ground that the billed charges were grossly excessive and did not reflect the reasonable value of the care she received, while TMC alleged that $21,409.59 was a reasonable amount for Bowden’s care and sought a declaratory judgment establishing the validity of its lien.

During discovery, TMC objected to Bowden’s requests for, among other things, information and documents regarding the amounts that the hospital charged insured patients for the same type of care. Bowden filed a motion to compel discovery, which the trial court *286 granted subject to the entry of a protective order to ensure confidentiality. On interlocutory appeal, the Court of Appeals reversed, holding that the trial court abused its discretion in granting the motion because “the discovery Bowden seeks is not relevant to her claim that TMC’s medical charges for her treatment were unreasonable.” The Medical Center, Inc. v. Bowden, 327 Ga. App. 714, 714 (761 SE2d 116) (2014). We granted Bowden’s petition for certiorari to review that holding.

As explained below, where the subj ect matter of a lawsuit includes the validity and amount of a hospital lien for the reasonable charges for a patient’s care, how much the hospital charged other patients, insured or uninsured, for the same type of care during the same time period is relevant for discovery purposes. The Court of Appeals erred in concluding otherwise and in holding on that ground that the trial court abused its discretion in granting Bowden’s motion to compel. Accordingly, we reverse the Court of Appeals’ judgment.

1. On July 1, 2011, the rental car in which Danielle Bowden was a passenger was involved in an accident. At about 10:40 p.m., Bowden, who was 21 years old and did not have health insurance, was taken by ambulance to TMC’s hospital in Columbus, Georgia, where she received emergency medical treatment that included surgery for a broken leg. At some point on July 2, Bowden’s mother allegedly signed an admission form that said in relevant part:

I, the undersigned, am seeking treatment at The Medical Center, Inc. . . . for myself or a person for whom I am responsible for his/her medical care. . . . The undersigned agrees, whether as Agent, Guarantor, or Patient, that in consideration of the services to be rendered to the patient, the undersigned is individually obligated to pay the account in full of the Hospital, and attending physicians, or organizations, or other satisfactory financial arrangements must be made prior to time of patient discharge.

Bowden was discharged from the hospital on July 4. On July 13, she returned to the hospital for physical therapy and allegedly signed the same admission form herself. TMC billed Bowden a total of $21,409.59 for her care and filed a hospital lien for that amount pursuant to OCGA § 44-14-470 (b). 1

*287 On July 27, 2012, the rental car company (Enterprise) filed a complaint in interpleader against Bowden and TMC and paid $25,000 into the registry of the trial court. The complaint alleged that Enterprise was self-insured with an insurance certificate that provided automobile coverage up to $25,000; that Bowden presented a claim against Enterprise, which Enterprise offered to settle for the policy limit; and that the offer was rej ected because Bowden and TMC were unable to agree on how much of the settlement proceeds should go to TMC to release its hospital lien. 2

On August 20, 2012, Bowden answered the complaint and filed a crossclaim against TMC, alleging that she was uninsured and indigent at the time of her treatment and that her bill of $21,409.59 was grossly excessive and did not reflect the reasonable value in the community of her treatment. Bowden also alleged that the emergency nature of her injuries and treatment prevented her from utilizing the provisions of OCGA § 31-7-11 to make pre-treatment cost comparisons. 3 She denied signing a payment contract with TMC *288 and alleged that any such contract would be void as both procedurally and substantively unconscionable. Bowden asserted a claim against TMC for unjust enrichment and, alternatively, breach of contract and violation of Georgia’s version of the Uniform Deceptive Trade Practices Act (“UDTPA”), OCGA §§ 10-1-370 to 10-1-375. As relief, she sought damages and attorney fees and asked that TMC’s “lien be dismissed.”

Along with her answer and crossclaim, Bowden served on TMC a request for production of documents and a set of seven written interrogatories, as discovery authorized by the Civil Practice Act. See OCGA §§ 9-11-33 (authorizing interrogatories to parties); 9-11-34 (authorizing, among other things, requests for production of documents). The document request sought: (1) medical records and bills related to Bowden’s treatment and the hospital lien; and (2) for its fiscal years 2010, 2011, and 2012, TMC’s pricing agreements with Medicaid, Medicare, BlueCross/BlueShield of Georgia, and TRICARE and TMC’s own indigent care program prices. The interrogatories asked TMC what Bowden’s specific, itemized charges would have been if she were covered by Medicaid, Medicare, BlueCross/BlueShield of Georgia, TRICARE, or TMC’s indigent care program; what TMC’s total gross revenues were from services billed at the OCGA § 31-7-11 rates and from services billed at less than those rates for the fiscal year prior to Bowden’s admission; for fiscal years 2010 and 2011, the percentages of patients who paid the OCGA § 31-7-11 rates and who paid less than those rates; and, since July 1, 2011, how many uninsured patients TMC had treated in its emergency room and how many of those patients TMC had billed for their treatment.

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Bowden v. the Medical Center, Inc., 773 S.E.2d 692, 297 Ga. 285, 2015 Ga. LEXIS 436 (Ga. 2015).

773 S.E.2d 692 (Bowden v. the Medical Center, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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