Allina Health Billing Practices Under Scrutiny By Minnesota AG’s Office

Allina Health is under investigation by the Minnesota attorney general’s office after allegations surfaced that the facility refused to treat patients with outstanding invoices beyond a particular threshold.

What the New York Times Says About Alina Health’s Billing Practices:

• According to a June New York Times article, Allina Health, located in Minneapolis, has a policy of canceling outpatient sessions for those with at least $4,500 in outstanding medical debt. 
• The news outlet conducted its research by reviewing internal papers and speaking with hospital staff and patients. 
• In response, Allina informed the NYT that patients receive many reminders about their medical bills and information on how to apply for financial assistance before they exceed the maximum amount.

The health system put the contentious billing procedures on pause a week after the NYT article came out so it could rethink its strategy.

Minnesota Attorney General Keith Ellison issued a statement expressing his continued worry over rumors that Allina is refusing to provide necessary non-emergency medical care to patients primarily due to their inability to pay outstanding medical bills.

There are 128 nonprofit hospitals in Minnesota, and the state’s attorney general’s office has stated that all of them are governed by the Hospital Agreement, which protects individuals from abusive, intimidating, and fraudulent conduct when healthcare facilities seek to collect medical debt.

The amended agreement from 2022 demands that hospitals in Minnesota offer rebates on healthcare services for specific patients and appropriate payment plan alternatives to all customers, and it forbids unfair billing and collection tactics.   

A spokesman for Allina Health said in a statement that the organization is in ongoing communication with the Minnesota attorney general’s office about its adherence to the Minnesota Hospital Agreement and the extensive help it affords patients with financial difficulties.

According to him, their policy that halted the scheduling of routine outpatient clinic services on June 9 is still on hold, and they are dedicated to lowering obstacles to treatment and will continue to perform research and analysis, as well as patient outreach.

Ellison stated, “Denying patients needed care on the basis of medical debt harms every Minnesotan, whether or not they are Allina patients. My office has heard from a good number of Allina patients who have shared their own upsetting stories of being denied care for this reason.”

Allina manages over a hundred hospitals and clinics across the Midwest, generating $4 billion in annual revenue. A review of hospital financial documents published in Health Affairs found that in 2020, the healthcare system spent less than half of 1% of its costs on charitable care, while the national average is nearly 2%

Patients with modest debts and, in some circumstances, patients with chronic diseases who relied on ongoing care were allegedly subject to Allina’s discontinuation of care policy, as revealed by the attorney general’s office.

Ellison’s office has been investigating the billing and collection procedures of other hospitals as well, including the Mayo Clinic.