[co-author: Stephanie Kozol]*

On April 12, New York Attorney General (AG) Letitia James announced that her office has reached a settlement with Northwell Health, New York’s largest health care network, related to allegations of misleading billing practices involving COVID-19 testing.

The investigation alleged that Northwell Health advertised three of its emergency departments, located in New York City and on Long Island, as free COVID-19 testing sites. However, individuals visiting these locations for a simple COVID-19 test and related services were billed for emergency room visits. Patients who went through one hospital’s drive-through testing location were similarly charged for emergency room visits despite receiving only a COVID-19 test. Further, despite assertions that federal and state laws prohibited cost-sharing for COVID-19 testing and related services, Northwell Health collected $81,761.42 from 559 New Yorkers as out-of-pocket expenses for the tests.

As part of the settlement, Northwell Health agreed to issue $400,000 in refunds to the 2,048 affected patients and to pay $650,000 to the state. A proactive measure has also been included in the settlement, necessitating Northwell Health to inform all patients seeking COVID-19 tests in the future at the emergency room about the potential emergency department charges.

Why It Matters

As noted in the New York AG’s press release, the investigation into Northwell Health’s billing practice was, in part, spurred by customer complaints —demonstrating the role consumers can play in attracting the attention of state AGs. It underscores the importance of organizations taking customer complaints seriously (whether the allegations are warranted or not), as they often form the catalyst for investigations.

*Senior Government Relations Manager