St. Croix Regional Medical Center in Wisconsin has proposed to pay $225,000 to resolve a lawsuit filed by people claiming they were charged excessive fees for accessing their medical records. The lawsuit, Stadler v. St. Croix Regional Medical Center Inc., alleges that the medical center charged patients and authorized individuals, such as attorneys, more than what is allowed under Wisconsin law when requesting copies of health records.
According to the complaint, patients and their representatives were overcharged beyond the legal limits outlined in Wis. Stat. §146.83(3f)(b)(4)-(5), which sets restrictions on fees for retrieving and copying medical records. Although St. Croix Regional Medical Center denies any liability or wrongdoing, both the plaintiffs and the defendant agreed that continuing with the lawsuit has significant risks. This led both parties to reach a settlement rather than prolong the legal battle.
The settlement terms allow patients, or those authorized by them, who were charged inappropriate fees, to file claims for compensation. These claimants may be entitled to up to 1.5 times the amount of the disputed charges. If the fees were paid by a representative (such as an attorney) and not passed on to the patient, they too are eligible to receive compensation under the same conditions. The $225,000 settlement fund will be used to pay out these claims, but this amount will be reduced by attorney fees, litigation costs, and an incentive award for the class representative, who will receive $2,500. The class counsel representing the plaintiffs plans to request 40% of the settlement fund, or $90,000, for legal fees. The remaining funds will be distributed among eligible claimants after these deductions.
The class members include all patients or their authorized representatives who requested medical records from St. Croix Regional Medical Center starting November 20, 2013. Both patients who directly paid fees and those who paid through a third party can submit claims, provided they can prove payment and that the fees were not passed on to the patient class members.
The deadline for objection to the proposed settlement is November 1, 2024, the deadline for opting out is November 18, 2024, and the deadline for submitting a claim is also November 18, 2024. The final approval hearing has been scheduled for January 31, 2025.
For individuals wishing to object to the settlement, the deadline is November 1, 2024. Those who want to opt out must do so by November 18, 2024, which is also the deadline for submitting a compensation claim. The schedule of the final hearing to approve the settlement is on January 31, 2025.
This settlement reflects the growing scrutiny around medical records fees, as laws aim to protect patients’ rights and prevent excessive charges. The outcome of this HIPAA violation case may prompt other healthcare institutions to evaluate their practices to avoid similar legal challenges in the future. With few exceptions, the HIPAA Privacy Rule grants individuals a legal and enforceable right to access and receive copies of their medical and health records upon request from their healthcare providers and health plans at reasonable costs.