Hospital loses case against Hutterite colony that cut member from insurance program

Once hospital accepted payment from Medicaid, it was precluded from seeking more money

Photo by Wesley Tingey on Unsplash

A specialty hospital that provided advanced care for a woman who suffered a stroke cannot collect payment from her health insurance plan for that care, the Eighth Circuit Court of Appeals ruled Wednesday.

Select Specialty Hospital of Sioux Falls filed suit against the Brentwood Hutterian Brethren colony near Faulkton, arguing the colony had "dumped" its member on Medicaid, even though she had been covered under the colony's health plan. Select also sued Dakotacare, which administered the plan.

A federal district court judge ruled against the hospital, dismissing Select Specialty's claim on summary judgment. A three-judge panel with the Eighth Circuit affirmed the district court's ruling.

The member in question, Mary, suffered a stroke and required ventilator care, which Select Specialty Hospital in Sioux Falls provided from March 2018 to December 2018. During the course of that treatment, Select Specialty provided $1.9 million in care.

ACLU threatens lawsuit over vanity license plates