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Centura Health Corp. is contesting a class action accusing it of unlawfully filing liens against patients without billing insurers first. This week, the Colorado Supreme Court stayed discovery in the case while reviewing whether plaintiff Jina Garcia must disclose information about a car accident that led to her treatment at a Centura hospital.

Garcia filed the lawsuit in 2017, claiming the hospital asserted a lien exceeding $2,000 against her after a car crash without billing Medicare. The Supreme Court is examining whether the trial court's discovery order properly analyzed the relevance of information Centura seeks to defend its case.

Centura argues that Garcia’s crash details are vital to evaluating her standing as a class member. According to the health system, the class includes patients injured by others’ negligence. Centura insists if the crash was Garcia’s fault, she would not qualify as a class member.

The hospital also contends that Garcia’s claims of harm from the lien need scrutiny. Centura maintains the lien was directed at her potential recovery in a personal injury case, not her directly, and questions the alleged damages. The company warned that class certification could lead to statutory penalties exceeding $70 million despite no substantial harm to individuals.

Centura also raised concerns about retroactive application of a recent Colorado Supreme Court ruling that Medicare is a primary medical payer for lien purposes. It emphasized that at the time, its interpretation of Medicare as a secondary payer was reasonable under the statute.

The Denver District Court defended its discovery order, arguing that Garcia’s interpretation of Colorado law limits the discovery process.

Garcia is represented by attorneys Robert E. Caldwell and Kevin S. Hannon. Centura is represented by McConnell Van Pelt LLC and Wheeler Trigg O'Donnell LLP.

Case Information:
In Re: Jina Garcia v. Centura Health Corp., case number 2024SA257, in the Colorado Supreme Court.