This Valley hospital wrongly billed patients. Here’s what California investigators found

A California Department of Justice investigation found San Joaquin General Hospital near Stockton improperly billed patients for COVID-19 related services that should have been free.

The findings were announced recently by the office of California Attorney General Rob Bonta, which concluded a nearly two-year investigation.

In total, 64 patients were wrongfully issued bills and will be issued refunds or have their bills canceled. The hospital was also directed to issue letters informing the patients, according to a press release. The announcement makes no mention of penalties. The California Department of Public Health regulates instances of improper billing.

“In the midst of a pandemic, these patients were issued burdensome bills for services that were supposed to be completely free,” Bonta said in the release. “Today, we are taking steps to correct that injustice and bring peace of mind to the 64 wrongfully billed patients and their families.”

The San Joaquin General Hospital said it conducted an internal review of over 17,000 hospital claims to confirm the 64 errors. The hospital added that in only one instance did it receive any payment for the improper billing. The other errors were “identified and suppressed” by staff before any payment collection.

“San Joaquin General Hospital is a public hospital that serves its community without regard to the ability of patients to pay,” the hospital wrote in a statement. “The hospital treated a high volume of local residents during the COVID-19 pandemic, including times of surge. During the chaos of the early months of the COVID pandemic, state and federal rules were being developed to prohibit billing patients for COVID-19 related care and the hospital put in policies to comply with those rules.”

In late 2020, the California Rural Legal Assistance Foundation alerted the state Department of Justice the San Joaquin General Hospital was charging some patients for COVID-19 care.

Under the federal Families First Coronavirus Response Act, California’s Medi-Cal program is authorized to provide access to all COVID-19 testing and treatment services, including vaccination and hospitalization, at no cost to patients.

The federal act applies to all services from April 8, 2020, and is scheduled to end May 11.

“Hospitals and health care providers should be held accountable when they engage in predatory billing practices that take advantage of vulnerable communities, especially those who already face financial, language, and geographic barriers to accessing health care,” said Clarisa Reyes-Becerra, director of CRLAF’s Immigrant Health Equity Project.

The investigation into the billing practices also revealed the hospital lacked an appropriate number of notices on the hospital’s policies including financial aid, discount payments and charity care opportunities.

These notices are required under the Hospital Fair Pricing Policies of the California Health and Safety Code. The San Joaquin General Hospital has since added notices in six additional locations across its facilities.