Providence Health System Settles Lawsuit, Erases $158M in Medical Debt

In a landmark settlement, Providence Health System has agreed to erase or refund $158 million in medical bills for low-income residents of Washington, following allegations of overcharging and aggressive collection practices.

Providence Health System is refunding nearly $21 million in medical bills and erasing $137 million in outstanding debt for tens of thousands of Washington residents.
The settlement comes ahead of a trial against Providence for violating Washington's charity care law, which mandates hospitals to inform patients about financial aid availability.
Attorney General Bob Ferguson highlighted the expectation for nonprofit hospitals to provide accessible healthcare, criticizing Providence's failure to meet these standards.
Under the settlement, Providence will also pay $4.5 million to the attorney general’s office for legal fees and enforcement costs of the charity care law.
The settlement impacts about 65,000 patients, erasing their debt, and 34,000 will receive refunds, plus 12% interest, for previously paid bills.