UVA Health to Cancel Tens of Thousands of Judgments and Liens Published on: 22 April 2021 at 10:00 a.m. ET April 22, 2021, 10 a.m. April 22, 2021, 9:51 a.m. insideARM.com The iA Institute
On April 19, 2021, the University of Virginia Health System
announcedthat it would be canceling a pool of judgments and liens dating back to the 1990s. The move will apply to all liens and judgments filed against households that make less than 400% of the federal poverty level, or about $106,000 for a family of four.
UVA has been suing patients for unpaid hospital bills for decades. Since Virginia law allows for post-judgment remedies, many of these lawsuits resulted in wage garnishments and liens which attached to real property and had to be satisfied before selling the property. Those families that already paid due to lawsuits or liens will not get their money back.
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UVA Health Cancels Patient Lawsuits
The University of Virginia Health System will cancel a massive backlog of court judgments and liens against patients for unpaid bills, according to
Kaiser Health News. The lawsuits go back to the 1990s, and tens of thousands of families may benefit. However, most families who have already paid money to UVA because of lawsuits or liens will not be getting their money back.
The move to wipe out liens that drain home equity years after a hospital visit is extremely rare, scholars of healthcare finance told
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