Praxis and Interpath Face Class Action Lawsuit Over Billing Practices

Case Overview: Idaho patients have filed a class action lawsuit against Praxis and Interpath, alleging deceptive billing practices and aggressive debt collection tactics.

Consumers Affected: Idaho patients who received medical services from Praxis and Interpath.

Court: U.S. District Court for the District of Idaho

Idaho healthcare provider Praxis and clinical laboratory Interpath’s deceptive billing practices result in “harsh and unfair” penalties for patients, a new lawsuit alleges.

The lawsuit claims that the companies, which provide medical services across Idaho, Oregon, and Washington, have violated state laws designed to protect patients from exploitative billing and debt collection practices by 

Lawsuit Accuses Praxis and Interpath of Inaccurate Billing and Aggressive Collection Practices

Idaho resident Nolan Anderson filed the proposed class action lawsuit accusing the two companies of violating the Idaho Consumer Protection Act (ICPA) and the Idaho Patient Act (IPACT). He said in August 2023 he was required to undergo a blood draw twice, but was told given it was a technical issue he would only be charged once, according to the lawsuit. 

However, he got an invoice from Interpath that included charges for both the first and second blood draws and despite multiple attempts to resolve the issue, including emails and phone calls disputing the charges, Interpath refused to correct the bill and eventually sent the account to a third-party collection agency. 

He says his situation shows systemic issues in the billing practices of Interpath, which he alleges routinely disregard patient disputes and rely on automated systems that escalate accounts to collections without proper review.

Shared Management System Allegedly Leads to Unfair Penalties for Patients

According to the lawsuit, Praxis and Interpath, both owned by Adaugeo Healthcare Solutions, LLC, operate under shared management and administrative systems. This close relationship allegedly leads to automated and inflexible billing processes that fail to address legitimate concerns raised by patients, Anderson alleges.

He said, despite laws designed to protect patients, the companies have a pattern of disregarding billing disputes and hastily transferring accounts to collection agencies, causing unnecessary financial harm to patients. 

“Defendants’ practices have resulted in Plaintiff and Class Members being subjected to harsh and unfair penalties, such as additional fees and credit hits,” the lawsuit states.

Idaho Laws Designed to Protect Patients from Abusive Medical Billing

Anderson accuses the two providers of violating Idaho’s Consumer Protection Act and the Idaho Patient Act. The Idaho Patient Act, enacted in 2020, protects patients from aggressive medical billing practices by prohibiting healthcare providers from engaging in "extraordinary collection actions" without first meeting specific statutory requirements. 

The Idaho Consumer Protection Act (ICPA) broadly prohibits unfair, deceptive, or misleading business practices, including false billing and debt collection activities, ensuring comprehensive protection for Idaho consumers. 

The lawsuit says the laws were enacted to recognize “the significant harm that abusive and aggressive patient-billing practices imposes on Idahoans.”

Healthcare and Financial Companies Face Growing Scrutiny Over Billing Practices

Praxis and Interpath are far from the only companies facing legal action over alleged unfair charging practices. In July, a class action lawsuit was filed accusing Natera, a genetic testing company, of deceptive billing practices, alleging that the company charges hidden fees for prenatal genetic tests, surprising patients with bills far exceeding the advertised price.

Recently, consumers filed a class action lawsuit against online contact lens store Lens.com, which says the company gouges consumers with hidden fees. Meanwhile, bill payment service Doxo is also facing a class action lawsuit accusing it of tricking consumers into paying unnecessary fees through a deceptive business model.

Anderson, in his lawsuit against Praxis and Interpath, wants to represent patients from Idaho and is seeking damages, punitive damages, injunctive relief, costs, and attorneys’ fees. 

Case Details

• Lawsuit: Anderson v. Interpath Laboratory, Inc., et al.
• Case Number: 2:24-cv-00341-DKG 
• Court: U.S. District Court for the District of Idaho 

Plaintiffs' Attorneys

• Jaren Wieland (Mooney Wieland Warren)
• Aaron M. Zigler (Zigler Law Group, LLC)

Have you experienced issues with billing or collection practices from healthcare providers like Praxis or Interpath? Share your thoughts and experiences in the comments below.