CHOMP announces forgiveness of medical debts incurred during Covid.

Community Hospital of the Monterey Peninsula officials announced on Dec. 18 that they’re forgiving 100 percent of all medical debt incurred by patients in the first three years of the Covid-19 pandemic, from 2020-2022. The move impacts 29,000 patient accounts and totals approximately $40 million in patient responsibility.

“We understand that medical debt has placed a significant burden on households locally and all across America, and that the Covid-19 pandemic has had devastating impacts on individuals, families, and businesses in Monterey County,” Dr. Steven Packer, president and CEO of Montage Health, said in a press release.

In a written response to the Weekly’s request for the dollar amount of forgiven loans, Matt Morgan, vice president and chief financial officer, and Kevin Causey, vice president and chief development officer, said that the $40 million outstanding debt was due and payable, but that CHOMP “does not receive full payment on aged debt. So while we did forgive $40 million in patient responsibility, removing that burden from our hospitality workers, seniors on a fixed income, teachers, fieldworkers and small business owners, [CHOMP] would have expected a lower amount in actual payments.”

They went on to say they had an “opportunity to make a real difference in the community and we felt that this is a great way to give back to 13,000-plus households. We’ve forgiven debts from hundreds of dollars to as large as tens of thousands of dollars.” They said that since informing patients of the forgiveness they’ve received “dozens of calls” thanking them.

While officials made good use of the timing right before Christmas, presenting it as a gift to the community, there are reasons Montage and CHOMP officials may be looking for some good will in return. Montage Health and the county’s other hospitals are possibly facing future competition from healthcare giant Kaiser Permanente, which has spent the last few years angling to enter the arena in Monterey County.

In May, CHOMP and Montage lost a wrongful termination lawsuit brought by an employee, Jared Stiver, who said he was fired for reporting “improprieties” in patient care and billing practices while he was working at the Tyler Heart Institute. A jury agreed with Stiver, awarding him nearly $10 million. A judge later adjusted the award to $9.475 million.

Montage and CHOMP officials said in October they were weighing an appeal. Causey said at that time they believed errors were made in the trial, and that Montage was not liable for “any of the alleged conduct.” He promised they would “vigorously pursue all avenues available to overturn what they consider to be an erroneous jury verdict.”

An appeal was filed by Montage and CHOMP on Nov. 3, in the California Sixth District Court of Appeal.