AUSTIN (KXAN) — Central Health announced Tuesday that it is suing health care company Ascension Texas, alleging that Ascension “failed to meet its contractual obligations” in providing health care services to residents of Travis County from low-income backgrounds.
Central Health began its contractual relationship with Ascension in 2004, according to a press release. In 2013, Ascension pledged to continue providing at least “current levels of healthcare services,” including hospital and specialty care. Contract renewals are available for patients enrolled through Central Health’s Medical Access (MAP) program, or Medicare for uninsured Travis County residents from low-income backgrounds.
Central health officials reported a 21 percent decline in the number of patients between 2013 and 2022, a reduction of 8,000 patients, according to the release.
“We had no choice,” Central Health President and CEO Mike Geeslin said in the release. “Ascension’s continued failure to meet its contractual commitments has left Central Health with no choice but to sue to hold Ascension accountable for failing to provide adequate and equitable health care services to low-income people in Travis County. What they did There is real harm done to those we serve.”
An Ascension spokesman acknowledged KXAN’s request for comment and said a statement would be issued shortly. We will update this story once we receive that statement.
The lawsuit alleges a decline in the level of health care services provided in the general and specialty areas. The suit alleges that Ascension breached its contract with Central Health by:
- Failure to provide “agreed health care services,” including general and specialty care, to low-income residents of Travis County
- Failure to provide care to MAP patients, charity care patients on a “non-discriminatory basis”
- ‘Inappropriate billing’ of healthcare services for charity care patients
- Failure to provide mandatory reporting required by Central Health to “monitor Ascension’s compliance with performance standards on behalf of Travis County residents”
As part of the lawsuit, Central Health is seeking to terminate its contractual agreement with Ascension, as well as an option to purchase Dell Seton Medical Center. According to a press release, Ascension was “admitted to be affiliated with the Dell School of Medicine at UT Austin Central Health Support” as part of the creation of the Dell Seton Medical Center.
