NJ Hospital Case Could Set a Debt Collection Precedent

Pascack Valley Hospital in Bergen County, NJ has emerged as the test case in a legal battle over debt collection that could have major implications for other hospitals when it comes to collecting from union benefit plans.

Pascack, located in Westwood, and at least 13 other New Jersey hospitals have filed lawsuits in an attempt to collect millions in payments they contend are owed them by these plans. The $30,000 Pascack is seeking from the United Food and Commercial Workers International Union Local 464-A Welfare Reimbursement Plan was discovered during an internal audit conducted last year, according to Keith McMurdy, a Roseland attorney representing the hospital. There are two claims involved that date back to 1999, he said.