After nearly eight years of legal battles, Medical Recovery Services has been ordered to pay $127,000 in legal fees for wrongfully suing a local woman over a $460 hospital bill. The Idaho Supreme Court upheld lower court decisions that found the medical debt collection company did not have a case against the patient. The woman had been admitted to the emergency room at Eastern Idaho Regional Medical Center in 2017 and tried to provide her insurance information, but it was not properly collected. Intermountain Emergency Physicians, a group of doctors that provides ER services, had outdated insurance information which led to the patient being billed incorrectly. Despite efforts by the patient to update her information, she was eventually sued by MRS. With the help of Idaho Medical Debt, the patient hired attorney Doug Farr who successfully defended her in court. This case is one of many similar instances in eastern Idaho where patients receive bills from contracted physician groups without proper insurance information. Farr’s firm has represented 169 clients on behalf of Idaho Medical Debt, with this being the only case to reach the Idaho Supreme Court. The ruling sheds light on the issue of improper billing practices by medical debt collection companies and the need for increased oversight to protect patients from unfair lawsuits.
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