A. A hospital that is not in material compliance with this act on the date that items or services are purchased from or provided to a patient by the hospital shall not initiate or pursue collection action against the patient or patient guarantor for a debt owed for the items or services. B. If a patient believes that a hospital was not in material compliance with this act on a date on or after the effective date of this act that items or services were purchased by or provided to the patient, and the hospital takes a collection action against the patient or patient guarantor, the patient or patient guarantor may file suit to determine if the hospital was materially out of compliance with this act on the date of service and if the noncompliance is related to the items or services. The hospital shall not take a collection action against the patient or patient guarantor while the lawsuit is pending. C. A hospital that has been found by a judge or jury to be materially out of compliance with this act: 1. Shall refund the payor any amount of the debt the payor has paid and shall pay a penalty to the patient or patient guarantor in an amount equal to the total amount of the debt; 2. Shall dismiss or cause to be dismissed any court action with prejudice and pay any reasonable attorney fees and costs incurred by the patient or patient guarantor relating to the action; and 3. Shall remove or cause to be removed from the patient’s or patient guarantor’s credit report any report made to a consumer reporting agency relating to the debt. D. Nothing in this act: 1. Prohibits a hospital from billing a patient, patient guarantor, or third-party payor, including a health insurer, for items or services provided to the patient; or 2. Requires a hospital to refund any payment made to the hospital for items or services provided to the patient, as long as no collection action is taken in violation of this act.
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