BOWDEN v. THE MEDICAL CENTER, INC.
S14G1632
Supreme Court of Georgia
DECIDED JUNE 15, 2015.
297 Ga. 285 | 773 SE2d 692
NAHMIAS, Justice.
Judgment reversed. All the Justices concur.
DECIDED JUNE 15, 2015.
Krevolin & Horst, Zahra S. Karinshak, Christopher E. Adams; Akin & Tate, S. Lester Tate III; Phyllis Miller; Kelly D. Kautz, for appellant.
Rubin Lublin, Jody C. Campbell; Webb Tanner Powell Mertz & Wilson, Anthony O. L. Powell, Robert J. Wilson; Hawkins Parnell Thackston & Young, Kathryn S. Whitlock, for appellees.
S14G1632. BOWDEN v. THE MEDICAL CENTER, INC. (773 SE2d 692)
NAHMIAS, Justice.
Georgia law gives a hospital a lien for the reasonable charges for its care and treatment of an injured person against all causes of action accruing to that person on account of her injuries, and establishes a process for the hospital to perfect its lien for the amount claimed to be due. See
During discovery, TMC objected to Bowden‘s requests for, among other things, information and documents regarding the amounts that the hospital charged insured patients for the same type of care. Bowden filed a motion to compel discovery, which the trial court
As explained below, where the subject matter of a lawsuit includes the validity and amount of a hospital lien for the reasonable charges for a patient‘s care, how much the hospital charged other patients, insured or uninsured, for the same type of care during the same time period is relevant for discovery purposes. The Court of Appeals erred in concluding otherwise and in holding on that ground that the trial court abused its discretion in granting Bowden‘s motion to compel. Accordingly, we reverse the Court of Appeals’ judgment.
1. On July 1, 2011, the rental car in which Danielle Bowden was a passenger was involved in an accident. At about 10:40 p.m., Bowden, who was 21 years old and did not have health insurance, was taken by ambulance to TMC‘s hospital in Columbus, Georgia, where she received emergency medical treatment that included surgery for a broken leg. At some point on July 2, Bowden‘s mother allegedly signed an admission form that said in relevant part:
I, the undersigned, am seeking treatment at The Medical Center, Inc. . . . for myself or a person for whom I am responsible for his/her medical care. . . . The undersigned agrees, whether as Agent, Guarantor, or Patient, that in consideration of the services to be rendered to the patient, the undersigned is individually obligated to pay the account in full of the Hospital, and attending physicians, or organizations, or other satisfactory financial arrangements must be made prior to time of patient discharge.
Bowden was discharged from the hospital on July 4. On July 13, she returned to the hospital for physical therapy and allegedly signed the same admission form herself. TMC billed Bowden a total of $21,409.59 for her care and filed a hospital lien for that amount pursuant to
On August 20, 2012, Bowden answered the complaint and filed a crossclaim against TMC, alleging that she was uninsured and indigent at the time of her treatment and that her bill of $21,409.59 was grossly excessive and did not reflect the reasonable value in the community of her treatment. Bowden also alleged that the emergency nature of her injuries and treatment prevented her from utilizing the provisions of
and alleged that any such contract would be void as both procedurally and substantively unconscionable. Bowden asserted a claim against TMC for unjust enrichment and, alternatively, breach of contract and violation of Georgia‘s version of the Uniform Deceptive Trade Practices Act (“UDTPA“),
Along with her answer and crossclaim, Bowden served on TMC a request for production of documents and a set of seven written interrogatories, as discovery authorized by the Civil Practice Act. See
On August 23, 2012, TMC answered Enterprise‘s complaint and filed a counterclaim alleging that it billed Bowden the “fair and reasonable amount” of $21,409.59 for the care that she received and requesting that the trial court enter a declaratory judgment that its hospital lien for that amount was “valid and attaches to any settlement proceeds received by Danielle Bowden.” On September 21, TMC answered Bowden‘s crossclaim, denying her allegation that her bill
On January 16, 2013, Bowden filed a motion under
The trial court held a hearing on the motion to compel on May 30, 2013. Bowden argued that information concerning how much TMC charged other patients, whether insured or uninsured, for the same care during the same time period was relevant to the reasonableness of TMC‘s charges for her care. TMC argued that Bowden‘s discovery requests sought information that was not relevant to the case and asked the court to enter a protective order in the event that it granted Bowden‘s motion, noting that many of its agreements with health insurance companies included confidentiality clauses. See
On appeal, the Court of Appeals reversed the trial court‘s discovery order, holding that the court had abused its discretion in granting the motion to compel because “the broad range of discovery Bowden requests is not relevant to her claim.” Bowden, 327 Ga. App. at 719. We granted Bowden‘s petition for certiorari.
2. (a)
[p]arties may obtain discovery regarding any matter, not privileged, which is relevant to the subject matter involved in the pending action, whether it relates to the claim or defense of the party seeking discovery or to the claim or defense of any other party. . . .
Moreover, “It is not ground for objection that the information sought will be inadmissible at the trial if the information sought appears reasonably calculated to lead to the discovery of admissible evidence.” Id. In this civil suit, Bowden seeks to invalidate TMC‘s hospital lien on the ground that the lien amount — which was the amount TMC billed her for — grossly exceeds the reasonable charges for her care, while TMC alleges that $21,409.59 was a reasonable charge for her care and seeks a declaratory judgment that its lien is valid. Thus, the “subject matter involved in the pending action” indisputably includes whether, in the words of the hospital lien statutes, “the amount claimed to be due” by TMC,
The question, then, is whether the documents Bowden requested and the interrogatories she propounded are “relevant” — in the broad discovery rather than the narrower trial sense of that term — to the reasonableness of TMC‘s charges for her care. As the United States
The key phrase in this definition — “relevant to the subject matter involved in the pending action” — has been construed broadly to encompass any matter that bears on, or that reasonably could lead to other matter that could bear on, any issue that is or may be in the case.
Oppenheimer Fund, Inc. v. Sanders, 437 U. S. 340, 351 (98 SCt 2380, 57 LE2d 253) (1978) (citations and footnote omitted). Thus, in the discovery context, courts “should and ordinarily do[ ] interpret ‘relevant’ very broadly to mean matter that is relevant to anything that is or may become an issue in the litigation.” Id. at 351, n. 12 (citation omitted). See generally 8 Richard L. Marcus, Federal Practice & Procedure § 2008 (3d ed. updated 2015).5
In accordance with this view, this Court has explained that “through the discovery process, non-privileged information which is in the possession of one party and which gives that party a tactical advantage may be required to be shared with the opposing side,” and we have cautioned trial courts that in exercising their discretion to determine the permissible scope of discovery, they should “keep[ ] in mind that the discovery procedure is to be construed liberally in favor of supplying a party with the facts.” Tenet Healthcare Corp. v. Louisiana Forum Corp., 273 Ga. 206, 210 (538 SE2d 441) (2000). See also Hampton Island Founders v. Liberty Capital, 283 Ga. 289, 297 (658 SE2d 619) (2008) (noting that the discovery rules are designed to remove the potential for secrecy and to provide parties with knowledge of all the relevant facts to reduce the element of surprise
The amounts that TMC charged to (and agreed to accept as payment in full from) other patients treated at the same hospital for the same type of care during the same general time frame that Bowden was treated may not be dispositive of whether TMC‘s charges for Bowden‘s care were “reasonable” under
The fair and reasonable value of goods and services is often determined by considering what similar buyers and sellers have paid and received for the same product in the same market, with adjustments upward or downward made to account for pertinent differences, and we see no reason why the same cannot be true of health care. See Melo v. Allstate Ins. Co., 800 FSupp.2d 596, 602 (D. Vt. 2011) (observing that “relevant evidence of the reasonable value of medical services” may include “evidence as to what the provider usually charges for the services provided, or what other providers usually charge“); Mark A. Hall & Carl E. Schneider, Patients as Consumers: Courts, Contracts, and the New Medical Marketplace, 106 Mich. L. Rev. 643, 686 (2008) (“In practice, courts [seeking to determine the reasonableness of health care charges] primarily ask (1) what the provider usually charges for the service and (2) what other providers usually charge.“). Suppose that, as Bowden argued at the motion to compel hearing, 99% of TMC‘s patients who received the same care as she did during the same time period had insurance and therefore paid the same much lower sum for their care — say, just $1,000. Under that scenario, a fairminded juror might conclude that the “reasonable charge” for that care was much closer to $1,000 than to the $21,409.59 that TMC billed Bowden. Bowden is entitled to determine if evidence exists to support such an argument.
Of course, TMC would be entitled to present evidence and to argue in response that what it charged its insured patients is not fairly comparable to what it charged uninsured patients like Bowden, because the insured patients were charged based on the hospital‘s contracts with their insurers that reasonably reflected such economic factors as volume discounts or promises of prompt and full payment,
There may be reasons why some or all of the information and documents TMC would have to provide in response to the trial court‘s order may not be admissible at trial. See McMillian, 310 Ga. App. at 740. But as the advisory committee‘s note on the 1970 amendments to the corresponding federal rule explained, that is no obstacle to discovery:
Since decisions as to relevance to the subject matter of the action are made for discovery purposes well in advance of trial, a flexible treatment of relevance is required and the making of discovery, whether voluntary or under court order, is not a concession or determination of relevance for purposes of trial.
(b) To reach the contrary conclusion, the Court of Appeals relied on the following analysis. First, the court noted that hospitals are free to contract with insurance companies to set preferred rates for their
We see three basic flaws in this analysis. First and foremost, the Court of Appeals appears to have concluded, based on its Cox line of cases, that if Bowden signed a contract to pay for her treatment, she would be precluded from challenging the reasonableness of the charges reflected in the hospital‘s lien. But the Cox line of cases does not directly apply here, because those were summary judgment cases, not discovery cases, and none involved a challenge to a hospital lien. And the general proposition that hospital charges are automatically “reasonable” whenever the patient (or someone authorized to act on her behalf) has signed a contract agreeing to pay those charges is incorrect, because the contract price for goods and services does not necessarily equal their reasonable value. See, e.g., City of Calhoun v. N. Ga. Electric Mem. Corp., 264 Ga. 205, 208 (443 SE2d 469) (1994) (recognizing the distinction between the contract price and the reasonable value of services). See also 24 Richard A. Lord, Williston on Contracts § 64:2 (4th ed. 2015) (same).
Second, as the case now stands, no contract by Bowden to pay for her treatment has been established. In Bowden‘s crossclaim, she specifically alleged that “[t]here is no valid written contract or non-written contract between [her] and [TMC] for the provision of medical services and goods” and that any such contract would be “void due to unconscionability.” She further alleged that “[i]f an implied contract for medical treatment is found to exist, [TMC] is entitled to recover from the interpleaded insurance funds only the reasonable value of the benefit conferred.” TMC did not ask the trial court to address the merits of Bowden‘s allegations that no valid contract exists before the court ruled on the motion to compel discovery, see footnote 4 above, and “[n]ormally, the trial court will not determine whether the legal theory upon which the discovery is based is sound . . . [unless] the claim or defense is sufficiently baseless.” Georgia Civil Discovery § 4.5. See also Austin v. Clark, 294 Ga. 773, 776-777 (755 SE2d 796) (2014) (Nahmias, J., concurring) (discussing the sequencing of discovery and dispositive motions on particular issues). Compare Best Concrete Products Co. v. Medusa Corp., 157 Ga. App. 97, 100-101 (276 SE2d 147) (1981) (holding that where the trial court had already dismissed Best‘s claim of discriminatory pricing as preempted by federal law, discovery from Medusa as to its dealings with other customers was properly refused as irrelevant).
Moreover, on the day before the hearing on the motion to compel, TMC for the first time provided Bowden with a copy of the form consenting to and agreeing to pay for Bowden‘s emergency treatment that was allegedly signed by her mother, but Bowden denied authorizing her mother to sign a payment contract on her behalf, and the form by its own terms appears to obligate only Bowden‘s mother to pay for the emergency care, as it said that “the undersigned [i.e., Bowden‘s mother] is individually obligated to pay the account in full to the Hospital.” Nor do
Finally, the Court of Appeals’ observation that Bowden could show through expert testimony or evidence from other medical providers or consumers that TMC‘s charges were unreasonable seems to acknowledge (correctly) that how much other patients are charged for the same services in the same market is relevant to the issue of reasonableness. If that is so, then more directly applicable information of that type — how much TMC itself charged other patients for the same services — would be even more relevant. The availability of one form of proof does not make other forms of proof irrelevant under
(c) For these reasons, the Court of Appeals erred in holding that the trial court abused its discretion in granting Bowden‘s motion to compel on the ground that all of the discovery Bowden sought was not “relevant” under
Judgment reversed. All the Justices concur.
DECIDED JUNE 15, 2015.
Charles A. Gower, Charles A. Gower, Jr., David T. Rohwedder, for appellant.
Fischer Scott, Bobby Lee Scott, Scott C. Crowley, for appellee.
