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Minnesota AG settlement with Hendricks over uninsured-patient discounts and charity care

Hendricks Community Hospital AssociationNovember 9, 2026Minnesota Attorney General

Consumers Affected

323

Summary

The Minnesota Attorney General alleged that Hendricks Community Hospital Association miscalculated discounts for uninsured patients and used a burdensome charity-care application. The settlement requires $171,800 in refunds or medical-debt reductions for eligible patients and a streamlined charity-care application.

Remedy

Hendricks must provide $171,800 in refunds or reductions in medical debt to eligible uninsured patients, directly notify 323 eligible patients, and streamline its charity-care application.

Consumer RefundsCompliance Program

Contract Impact

Healthcare providers should review billing-services and revenue-cycle vendor agreements for obligations to calculate uninsured-patient discounts accurately under applicable law, identify eligible patients, and administer refunds or debt reductions. Review charity-care administration and patient financial-assistance clauses to ensure applications are understandable and not unnecessarily burdensome, and that vendors do not demand excessive financial documentation. Customer-facing patient billing policies and notices should clearly describe discount and charity-care eligibility, while vendor data-processing and reporting clauses should support accurate eligibility reviews, direct patient notification, and auditability. This release does not describe a privacy violation, so it does not independently indicate a need to revise employee or general privacy clauses.

Contract Search Terms

uninsured patient discount termscharity care eligibilitypatient financial assistance applicationmedical billing compliancepatient refund and debt-reduction processpatient notification obligationshospital agreement compliancemedical debt collection practices

Laws Cited

Minnesota Hospital AgreementMinn. Stat. § 144.589
Minn. Stat. § 144.589

Violation Types

Entity Details

Entity

Hendricks Community Hospital Association

Industry

Healthcare

Official Sources

Source Evidence

Entity Name
"settlement with Hendricks Community Hospital Association in Hendricks, Minnesota"
Violation Types
"Hendricks improperly calculated the discount it was required to provide to uninsured patients with household incomes under $125,000"
Laws Cited
"Minnesota’s nonprofit hospitals, known as the Hospital Agreement"
Laws Cited
"Minn. Stat. § 144.589"
Remedy Summary
"requires Hendricks to provide $171,800 in refunds or reductions in medical debt to eligible uninsured patients"
Consumers Affected
"Hendricks will directly notify 323 patients that they are eligible for a refund or debt-reduction."

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