Wood v. North Mississippi Medical Center, Inc.

CourtDistrict Court, N.D. Mississippi
DecidedSeptember 30, 2024
Docket1:20-cv-00042
StatusUnknown

This text of Wood v. North Mississippi Medical Center, Inc. (Wood v. North Mississippi Medical Center, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wood v. North Mississippi Medical Center, Inc., (N.D. Miss. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF MISSISSIPPI ABERDEEN DIVISION

STANLEY WOOD and CHASTITY PLAINTIFFS WOOD, Individually, and on Behalf of a Class of Similarly Situated Persons

v. CIVIL ACTION NO. 1:20-cv-42-TBM-RP

NORTH MISSISSIPPI HEALTH SERVICES, INC. et al. DEFENDANTS MEMORANDUM OPINION AND ORDER This matter arises out of the medical treatment Chastity Wood received in 2017 from various providers in the North Mississippi Health Services system, specifically the balance-bills received from those treatments. According to the Woods, the remaining defendants—North Mississippi Health Services, North Mississippi Clinics, LLC, North Mississippi Medical Center, Inc., and Tupelo Service Finance (collectively, the “Hospital Defendants”)—agreed to abstain from balance-billing and are therefore liable for breach of contract, fraud and misrepresentation, and civil conspiracy. The Hospital Defendants have now filed a Motion for Summary Judgment [247] on these claims. For the reasons discussed fully below the Hospital Defendants’ Motion is granted and this case is dismissed. I. BACKGROUND AND PROCEDURAL HISTORY In 2017, Chastity Wood received medical treatment from North Mississippi Health Services, North Mississippi Clinics, LLC, and North Mississippi Medical Center, Inc. Prior to receiving treatment, however, these Hospital Defendants required that she present a card demonstrating entitlement to coverage pursuant to an insurance policy or health plan.1 [45], pg. 3. The Woods assert that these Hospital Defendants “accepted the employee benefits card . . . and copied it front and back.” Id. at 4. The front of the card stated, “[t]he Plan will only consider an

Assignment of Benefits (AOB) valid under the condition that the Provider accepts the payment received from the Plan as consideration in full for the services, supplies and/or treatment rendered, less any required deductibles/copays/coinsurance.” Id. at pg. 4. And the back of the card provided that an “ASSIGNMENT OF BENEFITS (AOB) is a waiver of the Provider’s right to balance bill the patient. Depositing checks received from the Plan represents accord and satisfaction and will take precedence over any previous terms.” Id. at 4.

The Woods assert that these Hospital Defendants confirmed that Chastity was entitled to coverage under her employee benefit plan (“the Plan”) and required Chastity to execute a “Consent for Treatment, Admission, and Release of Health Information.” Id. at pg. 5. The consent form included an assignment of benefits that gave the Hospital Defendants a guarantee of payment via an assignment of “all rights, benefits and interest under [her] health plan . . . in consideration for services rendered.” Id. (internal quotations and citations omitted). In their Amended Complaint, the Woods assert that the assignment of benefits created a contract

“between the Providers and the Plan when the Providers used an assignment of benefits to obtain payments from the Plan, and accepted the payments pursuant to the express terms, conditions and limitations contained in the Plan—” specifically, “that the patient not be balance billed for any amount beyond applicable cost sharing amounts (i.e. copayments, deductibles, or

1 Through her employer, Chastity was insured under an employee benefit plan administered by Health Cost Solutions, and her husband, Stan, was insured under the state health plan administered by Blue Cross/Blue Shield. [45], pg. 3. According to the Amended Complaint [45], the Woods “examined their plan documents before the treatments began and determined the lower annual deductible under Chastity’s plan would save them from significant expense.” Id. coinsurance), or charges for non-covered services.” Id. at pgs. 4, 11. But the Woods have since abandoned their argument that the assignment of benefits created a contract between the Providers and the Plan. Now, the Woods’ argument is a novel contractual claim that involves

third-party beneficiary status through an alleged accord and satisfaction agreement. This new contractual claim, which is set forth only in their Response, is discussed later in this Opinion. In 2018, at some point after receiving at least 48 payments from Health Cost Solutions, the Hospital Defendants demanded that the Woods pay almost $50,000.00 in balance bills. Id. Although the Woods attempted to resolve the situation, their efforts were futile. So when the Hospital Defendants offered a special “tax time deal”—that the Woods pay their debt before

April 1, 2019 for a limited time 20% discount—the Woods, fearful they would miss out on a one- time opportunity to obtain a discounted rate, secured a home equity line of credit and paid the Hospital Defendants. Id. at pg. 7. After payments were made pursuant to the “tax time deal,” however, former defendant Alliance Collection Services, Inc., demanded an additional payment of $8,936.05. Id. at pg. 8. The Woods refused and filed their original complaint on February 26, 2020, and their Amended Complaint on February 23, 2021.2 Now before the Court is the Hospital Defendants’ Motion for Summary Judgment on Remaining Claims [247].3

2 A number of motions have been filed since the filing of the Woods’ original complaint. For brevity, the lengthy procedural history and analysis of prior dispositive motions set forth in the Court’s prior Order [241], Wood v. N. Mississippi Health Servs., Inc., No. 1:20-cv-42-TBM-RP, 2023 WL 6396045, at *2-4 (N.D. Miss. Sep. 29, 2023), is incorporated here by reference.

3 Although the Hospital Defendants also discuss the Woods’ Fair Debt Collection Practice Act claims, the Woods concede that such claims were dismissed by the Court in its prior Order [241]. [250], pg. 2; Wood, 2023 WL 6396045, at *21 n. 19. II. STANDARD OF REVIEW Summary judgment is warranted when the evidence reveals no genuine issue regarding any material fact and the moving party is entitled to judgment as a matter of law. FED. R. CIV. P.

56(a). A genuine issue of material fact exists “if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S. Ct. 2505, 91 L. Ed. 2d 202 (1986). The party moving for summary judgment “bears the initial responsibility of informing the district court of the basis for its motion, and identifying those portions of [the record] which it believes demonstrate the absence of a genuine issue of material fact.” Celotex Corp. v. Catrett, 477

U.S. 317, 323, 106 S. Ct. 2548, 91 L. Ed. 2d 265 (1986). The nonmoving party must then “go beyond the pleadings” and “designate ‘specific facts showing that there is a genuine issue for trial.’” Id. at 324; see also Johnson v. Bd. of Supervisors of La. State Univ. & Agric. & Mech. Coll., 90 F.4th 449, 460 (5th Cir. 2024) (“[A] party opposing a properly-supported summary judgment motion ‘may not rest upon mere allegations contained in the pleadings, but must set forth and support by summary judgment evidence specific facts showing the existence of a genuine issue for trial.’” (quoting Ragas v. Tenn. Gas Pipeline Co., 136 F.3d 455, 458 (5th Cir. 1998))). “When

ruling on a motion for summary judgment, ‘the inferences to be drawn from the underlying facts . . . must be viewed in the light most favorable to the [nonmoving party].’” Ragas, 136 F.3d at 458 (quoting Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S. Ct. 1348, 89 L. Ed. 2d 538 (1986)). III. ANALYSIS AND DISCUSSION A.

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Wood v. North Mississippi Medical Center, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/wood-v-north-mississippi-medical-center-inc-msnd-2024.