Allen v. Clarian Health Partners, Inc.

Patients Abby Allen and Walter Moore sought medical treatment at Clarian North Hospital, which was owned by Clarian Health Partners. After Allen, who was uninsured and not covered by Medicare or Medicaid, received services, the hospital billed Allen its "chargemaster" rates in accordance with a contract between Allen and Clarian. Patients' class action complaint alleged breach of contract and sought declaratory judgment that the rates the hospital billed its uninsured patients were unreasonable and unenforceable. The trial court granted Clarian's motion to dismiss for failure to state a claim upon which relief can be granted. The court of appeals reversed, concluding that the issue of reasonableness required resolution by a fact-finder. The Supreme Court vacated the opinion of the court of appeals and affirmed the judgment of the trial court, holding that Patients' agreement to pay the hospital for the medical services they received in the context of a contract they formed with Clarian was not indefinite and referred to Clarian's chargemaster. As a result, the Court could not impute a "reasonable" price term into the contract. View "Allen v. Clarian Health Partners, Inc." on Justia Law