Money Magazine Names Hospital Whistleblowers Dr. John Bagnato And Charles Rehberg “Class Acts Of 2004"

OXFORD, Miss., Dec. 13 /PRNewswire/ -- The Scruggs Law Firm congratulates Dr. John Bagnato and Charles Rehberg, the two whistleblowers who have been instrumental in bringing hospital billing abuses into the public eye, for being named by Money Magazine as "Class Acts of 2004."

Money Magazine chose Dr. Bagnato and Mr. Rehberg as one of the dozen of "unsung people" who "made a significant difference to your family's well- being" in 2004. The accolade is part of Money Magazine's December 2004 issue.

Last year, Dr. Bagnato, a surgeon, and Mr. Rehberg, a CPA, discovered that their community hospital Phoebe Putney in Albany, Georgia was carrying out a calculated scheme in which it was reaping tens of millions of dollars in tax exemptions from the Albany community while failing to fulfill its obligation to provide charity care to uninsured patients. In fact, they found that uninsured patients were being charged significantly more than any other patient group, and the hospital was engaging in predatory collection techniques, including lawsuits, wage garnishment and mortgage liens when uninsured patients could not afford to pay the inflated bills.

Dr. Bagnato and Mr. Rehberg soon began investigating the financial records of other hospitals, and learned that this was a widespread problem across the country that was greatly contributing to the nation's healthcare crisis. They also learned that the industry, with its nonprofit status, was escaping any regulatory oversight. When state officials declined to intervene in this matter, Dr. Bagnato and Mr. Rehberg brought the issue to the attention of Attorney Richard Scruggs who, with a group of lawyers across the country, has subsequently filed 48 lawsuits in 23 states against hospitals. These lawyers are now working with Dr. Bagnato and Mr. Rehberg to reform the industry.

Since the initial lawsuits were filed in June, Dr. Bagnato and Mr. Rehberg have been subjected to personal intimidation, threats to family members, legal coercion and aggressive publicity efforts by Phoebe Putney to try to pressure them from stopping their campaign. Regardless, they are continuing their pursuit of justice and fairness on behalf of the 45 million uninsured patients around the country.

"I applaud John and Charles for their heroic efforts in taking on the powerful hospital industry," said Mr. Scruggs. "They have risked their careers, personal safety and financial stability in order to stop these abusive practices from going on in their community and in the nation-at-large. Phoebe Putney should be ashamed of the lawsuits, goon-like intimidation tactics and other deplorable behavior that they have engaged in to try to prevent John and Charles from blowing the whistle on their billing scam. They, and other abusive hospitals around the country, should also know that the lawyers and other advocates on this issue will not rest until serious reforms are made that force nonprofit hospitals to live up to their obligation to provide uninsured patients access to affordable healthcare and fair treatment.

Contact: The Scruggs Law Firm

662-281-1212

The Scruggs Law Firm

CONTACT: The Scruggs Law Firm, +1-662-281-1212