Georgia Disability Lawyer BlogLawsuits Against Wellstar Allege Hospital “Red-lining”
Last year Wellstar Health System closed its 450 bed Atlanta Medical Center, one of only two Level 1 trauma centers in metro Atlanta. A Level 1 Trauma Center provides the highest of trauma care to critically ill or injured patients and can provide complete care for every aspect of an injury through to rehabilitation. Wellstar also announced the closing of Atlanta Medical Center South in East Point. AMC was considered a vital health care provider for many low-income residents. Wellstar blamed the closure on decreasing revenue and inflated costs.
Wellstar claimed to have invested $350 million since 2016, yet cited losses of $107 million in a 12 month period. Still, Wellstar had $5.7 billion in assets and announced construction plans to expand Kennestone Hospital in Marietta, Georgia. Wellstar subsequently entered into negotiations with Augusta University Hospital System to purchase two hospitals there.
Last week Georgia Democratic lawmakers, Fulton County officials and the Atlanta NAACP filed complaints with the Department of Health and Human Services, the Department of Justice and the IRS alleging violations of its tax-exempt status and civil rights violations for closing a hospital in communities of color. Wellstar receives a significant amount of income from federally funded Medicare and Medicaid programs. Both complaints concern Wellstar’s funding and status as a non-profit hospital that receives federal funds.