Scarlett v. Air Methods Corporation

CourtDistrict Court, D. Colorado
DecidedMay 11, 2021
Docket1:16-cv-02723
StatusUnknown

This text of Scarlett v. Air Methods Corporation (Scarlett v. Air Methods Corporation) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scarlett v. Air Methods Corporation, (D. Colo. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Judge R. Brooke Jackson

Civil Action No 16-cv-02723-RBJ Consolidated Cases: 17-cv-00485; 17-cv-00502; 17-cv-00509; 17-cv-00667; 17-cv-791; 19-cv-01771; and 19-cv-01951

JEREMY LEE SCARLETT, on behalf of himself and all others similarly situated,

Plaintiff,

v.

AIR METHODS CORPORATION and ROCKY MOUNTAIN HOLDINGS, LLC,

Defendants.

ORDER ON PLAINTIFFS’ MOTION FOR SUMMARY JUDGMENT

This matter is before the Court on remand from the Tenth Circuit, which asked me to address a single issue: whether an express or implied-in-fact contract exists between the parties. Before the Court are two pending motions for summary judgment filed by separate plaintiff groups. ECF Nos. 181, 185. For the following reasons, I GRANT plaintiffs’ motions for summary judgment and find that no contracts were formed. I. FACTUAL BACKGROUND This is a putative class action brought on behalf of patients, their legal custodians, or the estates of deceased patients, who allege that they were charged exorbitant fees by defendants for medical transport by helicopter. A. The parties Air Methods Corporation and Rocky Mountain Holdings, LLC (“defendants”) provide helicopter transport to individuals that are suffering from emergency medical conditions. Both entities are incorporated in Delaware. Rocky Mountain Holdings owns Air Methods Corporation, and defendants jointly collect all service fees. There are two groups of plaintiffs in this case. The first group (“Cowen plaintiffs”) includes Randall and Ashley Cowen, who live in Missouri; Lana and Grif Hughes, who also live in Missouri; Kenneth Kranhold and Jonathan Armato, who live in Arizona; and Yolanda O’Neale, who lives in Alabama. The second group (“Dequasie plaintiffs”) includes six individuals from Oklahoma: Richard Dequasie, Dwain Patillo, Kathleen Pence, Kara Ridley, Sandra Saenz, and Miranda Taylor.

B. Air Methods’ Protocols Defendants provide medical transport via helicopter to patients experiencing medical emergencies. Defendants do not self-dispatch—they only provide medical transport if a physician, qualified first responder, or other qualified medical provider determines that air transport is medically necessary and recommends that the patient be air transported. ECF No. 181-1 at 149:8-10. Because defendants are governed by the Emergency Medical Treatment and Labor Act (“EMTALA”) they are prohibited from considering a patient’s ability to pay prior to transport. Id. at 114:20–115:2. Instead, irrespective of a patient’s ability to pay, they must transport the patient if a physician deems it medically necessary. Id. The only circumstance in

which transport is deemed medically necessary but does not occur is when the patient refuses transport. Id. at 147:8-10. If a patient refuses transport, the patient must sign a document that codifies that refusal and releases defendants from all liability. Defendants require completion of three documents for each patient: the authorization and consent form (“A&C”), the assignment of benefits form (“AOB”), and the physicians’ certification statement (“PCS”). ECF No. 204 at 2. The PCS is completed by the doctor and confirms that air transport is medically necessary. Id. at 86:7-11. The A&C is signed, usually by a patient’s family member, prior to transport. The AOB is completed and signed following transport. ECF No. 182-1. The A&C and AOB forms contain a financial responsibility provision that reads I acknowledge that many insurers will only pay for services that they determine to be medically necessary and that meet other coverage requirements. . . . If my insurer determines that the Services, or any part of them, are not medically necessary or fail to meet other coverage requirements, the insurer may deny payment for those Services. Notwithstanding any other provision herein, I agree that if my insurer denies all or any part of my provider’s charges for any reason, or if I have no insurance, I will be personally and fully responsible for payment of provider’s charges.

ECF Nos. 182, 182-1. Air Methods requires its employees to ensure that the A&C is signed for every flight at the time of transport. ECF No. 181-1 at 67:5-13. The employees make every attempt to get the patient to sign the form directly. However, depending on the nature of the patient’s medical emergency, that may be impossible. In cases where a patient cannot sign, a spouse or another representative typically signs the A&C on the patient’s behalf. If there is no family representative to sign, then an Air Methods employee signs the form. Id. at 239:11-15. Defendants unilaterally set the price for their services and do not determine price based on any health-related services provided by EMTs while patients are in the ambulance. Instead, they use two numbers to determine the cost of each flight. These numbers differ depending on where the flight occurs. The first is the base charge or “lift fee,” which the plaintiffs will be charged regardless of the number of miles they travel. Id. at 232:6-13. The lift rate is around $30,000.00 across all geographical areas related to this case. ECF No. 182-5. The second is the mileage rate, and this amount depends on the number of miles traveled. The mileage rate is approximately $300.00 per mile. Id. Following each flight, Air Methods bills the patient for its services based on these numbers. Neither the A&C form nor any other document provided to patients or their representatives prior to transport mentions the price or how price will be determined. ECF No. 181-1 at 33:25-34:2. Defendants and patients, patient representatives, or healthcare providers do not negotiate the service price or any of the terms in the A&C and AOB forms prior to transport. Patients are frequently unconscious at the time of transport, and they are therefore physically unable to sign the A&C form, much less haggle over its terms. Furthermore, because Air

Methods responds to medical emergencies, time is of the essence, and there would typically be no time to negotiate. Id. at 83:7-11. The financial responsibility provision itself cannot quickly be edited by the patients or their representatives at the time of signing. It reads “[a]ny revisions, strikethroughs, handwritten language or other changes to the typewritten text cannot be made except by another mutually signed agreement. Any such modification without a mutually signed agreement is null and void and non-enforceable.” ECF No. 186 at 1. Thus, for patients or their representatives to object to the terms of the forms they would need to renegotiate an entirely new form and get it signed by defendants—a feat that is impossible, practically speaking, given the emergency nature of the situation.

C. The individual plaintiffs’ circumstances 1. Cowen plaintiffs Ashley and Randal Cowen required medical transport for their minor son, J. Cowen, who suffered a puncture wound to the neck when he fell on his scooter’s handlebars. ECF No. 181-3 at 22:1-4. A ground ambulance initially transported him to a local hospital. However, the emergency room physician determined that J. Cowen had received potentially life-threatening injuries that required specialized pediatric care. Id. at 35:4-10. The treating physician requested air transport from defendants and signed the PCS form. Ashley Cowen signed the A&C form prior to transport. Id. at 73:15-20. According to Mr. Cowen there was no discussion of the form, no negotiations, and no communication with the flight crew. Id. at 87:16-17. Following the incident Randal Cowen received the AOB form in the mail. Id. at 100:22-24. He assumed that it was part of the insurance process and signed and returned the form. Id. Air Methods charged

the Cowens $42,172.53, and their insurance company covered only $4,955.77 of that amount. ECF No. 182-5.

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