Hospitals sue thousands of NC patients, many unknowingly

Hospitals in North Carolina sued thousands of patients for unpaid medical bills. Many patients were unaware of the lawsuits until they discovered a lien had been placed on their property.

Several patients were unaware of the lawsuits against them, and the hospitals won by default. According to Sara Sternberg Greene of the Duke University School of Law, this can devastate a family's financial well-being.

"In North Carolina, judgments automatically act as liens against a patient's home," Greene said.

Barak Richman, also with the Duke University School of Law, says not all hospitals bring their patients to court.

Atrium, Caramont, Sampson Regional Medical Center, Community Health Systems, and Mission are the top five hospitals that collect medical bills in court, accounting for 96% of all such cases.

"Now, this does not mean other hospital systems are not engaging in collection activities," Richman said. "But these are the hospital systems that have been disproportionately using North Carolina Courts to sue patients to collect medical debts."

Richman also said that these lawsuits are concentrated in five of North Carolina's 100 counties, with 4,459 lawsuits filed in Gaston, Mecklenburg, Sampson, Cabarrus and Iredell counties.

There's little recourse for many, but if an individual finds themselves in this situation, push back.

"Once there is that judgment, that's on their credit report," Greene said. "That has affected their credit score."

According to North Carolina Treasurer Dale Folwell, patients are held accountable for something they have no control over.

"The consumers, the citizens of this state, have absolutely no choice, and that's why it's so deadly," Folwell said. Earlier this year, the state Senate unanimously passed the Medical Debt De-Weaponization Act, which has been stalled in the House.