A lawsuit has been filed and is seeking class action status against the hospital and service provider for allegedly collecting patient fees in a fraudulent manner. The lawsuit was filed in Federal Court in Birmingham and claims UAB Health System and Franklin Collection Service violated the Racketeer Influenced and Corrupt Organizations Act in collecting practices on delinquent patient accounts at Medical West. The suit claims UAB Health System and Franklin Collection Service conspired to inflate their profits through mail and wire fraud, in some cases charging patients 35% extra on their original bill.
The lawsuit was filed on behalf of all patients since 2004 who paid more than the original debt owed at any UAB hospital because of collection notices from Franklin Collection. It alleges that the defendants added unreasonable, unconscionable, and illegal charges to the original debt, and then used extortionate practices to collect the over charges.
