Kaiser Settles Lawsuit over Homeless Dumping

By Jacqueline Palhegyi

Published on June 07, 2007

The settlement came over a year after Kaiser, the nation’s largest HMO, made national headlines when one of its patients was found wandering the streets of Skid Row, a dangerous Los Angeles neighborhood. Carol Ann Reyes, 63, was seen in surveillance footage being dropped off by a taxi and walking the streets in her hospital gown and slippers for several minutes before being taken in by the nearby Union Rescue Mission.

Los Angeles City Attorney Rocky Delgadillo filed criminal charges against Kaiser in what he indicated was an attempt to send a message to hospitals around the country. Los Angeles officials are currently investigating several local hospitals accused of abandoning patients to the streets.

Kaiser also faced civil claims for the alleged mistreatment of Reyes. Although Kaiser initially denied any wrongdoing, the company’s president recently admitted that the incident revealed a breakdown in the hospital’s policies.

Kaiser has agreed to pay $5,000 in civil penalties, $50,000 for the costs of investigation, and $500,000 to a program benefiting local homeless shelters.

Comment on this article →