A proposed settlement of a class-action lawsuit against Scripps Health on billing of uninsured patients could reduce unpaid hospital bills owed by as many as 60,000 patients. The deal would apply to patients who received care from one of the nonprofit's five hospital emergency rooms as far back as July 19, 2002, were uninsured at the time and paid full prices for medical services. Those patients would be eligible for a 35 percent discount on their bills.

Altogether, the discounts could be worth more than $73 million, said lawyers for both sides. Scripps also agreed to maintain discount pricing and "compassionate" collection policies for uninsured patients regardless of income; enhance its charity discounts for moderate-income, uninsured patients; offer financial counseling to uninsured patients; and provide more information about the policies to uninsured patients.

Most uninsured patients who qualify for discounts or refunds should get claim forms in the mail in the coming months. Those who think they qualify and don't receive a form can request one from the plaintiffs' San Francisco law firm, Lieff Cabraser Heimann and Bernstein. The lead plaintiff in the case, Phillip Franklin, 56, of Solana Beach, said he was satisfied with the outcome of the litigation, which began in 2006 after a bill collector sued him for failing to pay $2,900 in emergency-room charges from Scripps Memorial Hospital-Encinitas.

Franklin's lawsuit argued that Scripps' treatment of uninsured patients who couldn't pay their bills violated state consumer protection statutes and contract laws, said attorney Kelly M. Dermody of Lieff Cabraser Heimann and Bernstein. She said the lawsuit followed the spirit of numerous federal cases filed in recent years in California and other states, alleging that nonprofit health care systems such as Scripps have failed to live up to their legal obligation to provide free and discounted care to the needy in exchange for a tax-exempt status.

To learn more about the settlement, click here.