Insurance company balks at paying $38 million hospital bills

Doctors Hospital unveiled the Fred Mullins, M.D. Tower at the Joseph M Still Burn Center Feb 23, 2021. FILE PHOTO by Shellie Smitley.

Date: October 25, 2022

Presented with hospital bills of nearly $38.68 million for two men severely burned in a work-related explosion, an insurance company filed suit.

The American Interstate Insurance Co. has until Nov. 11 to respond to the motion to dismiss the federal lawsuit which was filed by Doctors Hospital and the Joseph M. Still Burn Center earlier this month.

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The American Interstate Insurance filed suit in U.S. District Court in Augusta on July 8. The company provides workman’s compensation for the Advanced Environmental Options Inc. of Spartanburg, S.C.
The lawsuit centers on two of Advanced Environmental Options employees severely burned in a Nov. 1, 2021, fire. The employees were cleaning fiber pellets and plastic dust at Innovative Fibers when a furnace ignited a fire that day.

According to local news reports in Spartanburg, the employees were airlifted to the JMS Burn Center for treatment, and two others were treated at the Spartanburg Medical Center.

The insurance company contends the hospital bills are arbitrary and exorbitant and far surpasses the maximum payment set under the worker’s comp law in South Carolina. The company paid the maximum amount of just over $3.77 million.

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The insurance company seeks a judgment that it does not have to pay any more than what it has, or that it be required to pay no more than “reasonable” amounts as required under the Georgia worker’s comp law.

The hospital seeks the dismissal of the lawsuit. It contends the two employees needed months of life-saving medical treatment at the largest burn center in the country.

Sandy Hodson is a staff reporter covering courts for The Augusta Press. Reach her at sandy@theaugustapress.com. 

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The Author

Award-winning journalist Sandy Hodson The Augusta Press courts reporter. She is a native of Indiana, but she has been an Augusta resident since 1995 when she joined the staff of the Augusta Chronicle where she covered courts and public affairs. Hodson is a graduate of Ball State University, and she holds a certificate in investigative reporting from the Investigative Reporters and Editors organization. Before joining the Chronicle, Hodson spent six years at the Jackson, Tenn. Sun. Hodson received the prestigious Georgia Press Association Freedom of Information Award in 2015, and she has won press association awards for investigative reporting, non-deadline reporting, hard news reporting, public service and specialty reporting. In 2000, Hodson won the Georgia Bar Association’s Silver Gavel Award, and in 2001, she received Honorable Mention for the same award and is a fellow of the National Press Foundation and a graduate of the National Institute for Computer-Assisted Reporting boot camp.

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