Migliaccio & Rathod LLP is investigating the financial assistance and medical debt collection practices of CentraCare, a nonprofit health system based in St. Cloud, Minnesota.
A May 2026 investigation by KFF Health News and the Minnesota Star Tribune described a CentraCare patient who incurred more than $8,000 in medical bills following cancer treatment despite having health insurance. According to the patient, CentraCare denied her request for financial assistance while she was earning approximately $41,000 annually. She subsequently paid more than $6,000 toward her bills, but CentraCare sued her for the remaining balance. The lawsuit was later dropped after she borrowed against her retirement savings to pay the debt.
Minnesota law provides protections against certain hospital debt collection practices, including requirements concerning financial assistance policies and notices before extraordinary collection activity. Nonprofit hospitals, such as CentraCare are also subject to federal financial assistance and collection requirements.
What Consumers May Have Experienced:
- Receiving substantial medical bills despite having health insurance;
- Being denied financial assistance despite having limited household income;
- Paying thousands of dollars toward medical debt while struggling to afford basic household expenses;
- Being sued after making payments toward an outstanding medical bill;
- Borrowing against retirement savings or taking out loans to resolve hospital debt.
Potential Claims May Include:
- Violations of Section 501(r) financial assistance and billing requirements;
- Failure to properly disclose or administer the hospital’s financial assistance policy;
- Improper collection of medical debt where required assistance or discounts were not applied;
- Violations of applicable Minnesota hospital debt collection requirements;
- FDCPA violations by third-party collection agencies, where applicable;
- Deceptive or misleading billing and collection practices, if supported by the facts.
Signs You May Be Affected:
- CentraCare billed you thousands of dollars for medically necessary treatment;
- You had health insurance but still faced substantial out-of-pocket medical expenses;
- Your application for financial assistance was denied;
- You were sued after making payments toward your medical debt;
- You borrowed money, used retirement savings, or went without necessities to pay CentraCare medical bills.
If CentraCare denied your financial assistance application, sued you over an unpaid medical bill, or required you to pay substantial medical expenses despite financial hardship, Migliaccio & Rathod LLP would like to hear from you. Please complete the contact form on this page, send us an email at [email protected], or give us a call at (202) 470-3520.