The aggressive practices used by the Chicago-based Accrective Health to collect debt from patients could put Fairview's University of Minnesota Medical Center at risk of being terminated from Medicare and Medicaid, according to the Star Tribune.
A state official indicates that won't likely happen because Fairview Health Services is working on corrective measures to avoid the ultimate penalty.
Federal documents obtained by the newspaper show patients and their relatives were subjected to "abuse and harassment'' from debt collectors while waiting for treatment.
Accretive denied any wrongdoing at the Minneapolis-based hospital, but in July it ended a legal feud with Minnesota Attorney General Lori Swanson. The consulting firm agreed not to conduct business in the state for at least two years and would pay $2.5 million to Minnesota patients.
The controversial collection tactics prompted Fairview to terminate its contract with Accretive in April.
Fairview's board of directors also chose not to renew President and CEO Mark Eustis' contract. Board chairman Chuck Mooty took over as interim CEO last month.