CityMD refunds $7M to patients illegally billed for COVID tests
Patients stand in a line outside a CityMD clinic location in Levittown in November 2020. Credit: Jeff Bachner
CityMD has issued nearly $7 million in refunds and canceled $7 million more in charges for hundreds of thousands of patients who received improper bills for COVID-19 tests, Attorney General Letitia James announced Tuesday.
The urgent care provider billed patients between March 2020 and November 2022 despite its knowledge that state and federal law prohibited billing patients for tests during the COVID-19 public health emergency, which ended in May 2023, the attorney general said.
“New Yorkers should never have to worry about unexpected medical bills, especially during a public health crisis,” James said in a statement. “CityMD’s actions added unnecessary stress and financial burdens to patients seeking essential COVID-19 testing at the height of the pandemic."
The settlement is the latest negotiated by the attorney general with health care providers who charged for COVID tests during the pandemic. Northwell Health agreed last year to pay a $650,000 penalty and refund $400,000 to patients for improper charges in Huntington and Manhattan. New York City clinic CareCube paid a $300,000 penalty in 2023.
CityMD has more than 30 Long Island locations, with a significant presence in both Nassau and Suffolk counties, from Lynbrook to Cutchogue, according to its website.
A CityMD spokesperson said the company reached the settlement "to avoid the cost and burden of prolonged litigation." The company noted it did not admit liability or wrongdoing as part of the agreement.
"We remain proud that we were available to our patients at all times throughout the pandemic, and we look forward to continuing to serve them," the company said in an emailed statement.
In November 2022, CityMD agreed to cancel cost-sharing payments related to COVID tests conducted since March 2020.
In all, nearly 216,000 patients have received refunds worth $6.9 million, and about 87,000 patients had bills worth $7 million canceled, the attorney general said.
CityMD also agreed to pay $95,000 in penalties to New York State.
Consumer complaints to the attorney general's office led James to open an investigation into CityMD in October 2022. That investigation found the company sought copayments and deductible payments for COVID tests from more than 250,000 patients statewide.
CityMD did not make clear that patients would owe money out of pocket on its website, and some patients were given assurances by staff that they would not owe money for the tests, the attorney general's office said.
"It’s concerning that patients were unexpectedly charged for testing and CityMD did not adequately respond to complaints related to the improper charges, said Martine Hackett, chair of the Department of Population Health at Hofstra University.
Urgent care clinics have filled a gap in the health care system as it has become more difficult to book a primary care appointment, she said.
“This builds in mistrust of clinical settings because this is where [patients] are supposed to be going to get information that can help prevent the spread of COVID,” Hackett said, “and they’re almost getting punished for doing that.”
As part of the settlement, the urgent care chain agreed to disclose the cost of testing on its website. CityMD's website indicates patients with no insurance pay $225, while insured patients should contact their insurer about how much they owe under their plan.
Chicago-based primary care chain VillageMD acquired CityMD's parent company for $8.9 billion in 2023. Walgreens owns a controlling stake in VillageMD.
CityMD has issued nearly $7 million in refunds and canceled $7 million more in charges for hundreds of thousands of patients who received improper bills for COVID-19 tests, Attorney General Letitia James announced Tuesday.
The urgent care provider billed patients between March 2020 and November 2022 despite its knowledge that state and federal law prohibited billing patients for tests during the COVID-19 public health emergency, which ended in May 2023, the attorney general said.
“New Yorkers should never have to worry about unexpected medical bills, especially during a public health crisis,” James said in a statement. “CityMD’s actions added unnecessary stress and financial burdens to patients seeking essential COVID-19 testing at the height of the pandemic."
The settlement is the latest negotiated by the attorney general with health care providers who charged for COVID tests during the pandemic. Northwell Health agreed last year to pay a $650,000 penalty and refund $400,000 to patients for improper charges in Huntington and Manhattan. New York City clinic CareCube paid a $300,000 penalty in 2023.
CityMD has more than 30 Long Island locations, with a significant presence in both Nassau and Suffolk counties, from Lynbrook to Cutchogue, according to its website.
A CityMD spokesperson said the company reached the settlement "to avoid the cost and burden of prolonged litigation." The company noted it did not admit liability or wrongdoing as part of the agreement.
"We remain proud that we were available to our patients at all times throughout the pandemic, and we look forward to continuing to serve them," the company said in an emailed statement.
In November 2022, CityMD agreed to cancel cost-sharing payments related to COVID tests conducted since March 2020.
In all, nearly 216,000 patients have received refunds worth $6.9 million, and about 87,000 patients had bills worth $7 million canceled, the attorney general said.
CityMD also agreed to pay $95,000 in penalties to New York State.
Consumer complaints to the attorney general's office led James to open an investigation into CityMD in October 2022. That investigation found the company sought copayments and deductible payments for COVID tests from more than 250,000 patients statewide.
CityMD did not make clear that patients would owe money out of pocket on its website, and some patients were given assurances by staff that they would not owe money for the tests, the attorney general's office said.
"It’s concerning that patients were unexpectedly charged for testing and CityMD did not adequately respond to complaints related to the improper charges, said Martine Hackett, chair of the Department of Population Health at Hofstra University.
Urgent care clinics have filled a gap in the health care system as it has become more difficult to book a primary care appointment, she said.
“This builds in mistrust of clinical settings because this is where [patients] are supposed to be going to get information that can help prevent the spread of COVID,” Hackett said, “and they’re almost getting punished for doing that.”
As part of the settlement, the urgent care chain agreed to disclose the cost of testing on its website. CityMD's website indicates patients with no insurance pay $225, while insured patients should contact their insurer about how much they owe under their plan.
Chicago-based primary care chain VillageMD acquired CityMD's parent company for $8.9 billion in 2023. Walgreens owns a controlling stake in VillageMD.
Jonathan LaMantia covers residential real estate and other business news on Long Island. He previously covered the business of health care for Crain's New York Business.
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