Penalty Amount
$1,412,776
Consumers Affected
3,478
Minnesota Attorney General Keith Ellison reached a settlement with Stevens Community Medical Center (SCMC) over allegations that SCMC improperly calculated discounts required for uninsured patients with household incomes under $125,000, violating the Minnesota Hospital Agreement and state law. As a result, some uninsured patients were billed up to 20.5% more than allowed. SCMC must provide up to $1,412,776.25 in refunds or medical-debt reductions to potentially eligible patients.
SCMC must notify 3,478 patients who received services from April 1, 2020 to December 31, 2025 of a potential additional discount in the form of a refund or reduction in outstanding medical debt. If patients verify household income was under $125,000 at the time of services, SCMC must provide the refund or debt adjustment based on the correct discount calculation.
In-house legal teams at healthcare providers and hospitals should review vendor agreements with billing and revenue cycle management companies, third-party collection agencies, and payment plan administrators to ensure compliance with state uninsured billing laws and regulatory agreements such as the Minnesota Hospital Agreement. Specifically, they should examine clauses related to discount calculation methodologies (e.g., 'most favored insurer' provisions), charity care and financial assistance policies, and prohibitions on aggressive debt collection. They should also verify that their contracts require vendors to flag and prevent overbilling of uninsured patients, and include indemnification and audit rights for billing errors. Additionally, any payer contracts should be reviewed to determine the 'highest discount provided to any private insurer' for purposes of calculating uninsured discounts under Minn. Stat. § 144.589.
Entity
Stevens Community Medical Center
Industry
Healthcare"Stevens Community Medical Center (SCMC) of Morris, Minnesota"
"up to $1,412,776.25 in refunds or reductions in medical debt"
"Minn. Stat. § 144.589"
"SCMC improperly calculated the discount it was required to provide to uninsured patients with household incomes under $125,000"
"notify 3,478 patients"
"August 10, 2026"
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$518K
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