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I manage a medical practice in MA; we have outsourced our billing

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since 2002 to the same...
I manage a medical practice in MA; we have outsourced our billing since 2002 to the same billing company. We have always paid them promptly. It has come to my attention that the doctor (owner) of the practice had an addendum to the contract with this billing service documenting that the percentage of collections would be lowered to 5% from 5 1/2 % when collections went over 500K a month. We have consistently been over a million a month. I feel that the billing service should honor the mistake of overbilling and pay the owner the difference.
The owner of the billing service is insisting that the statute of limitations in MA is six years. She further feels that we were responsible to correct her billing errors. I have searched for a statute covering these circumstances but cannot find any specific to these circumstances. Please, help.
Submitted: 2 years ago.Category: Consumer Protection Law
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Answered in 22 minutes by:
6/30/2015
Consumer Protection Lawyer: Damien Bosco, Attorney replied 2 years ago
Damien Bosco
Damien Bosco, Attorney
Category: Consumer Protection Law
Satisfied Customers: 3,004
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Hello. Let me see if I can help you. It is true that the statute of limitation is 6 years for a breach of contract or an account stated action. So, the time period from 2002 to 2009 would fall outside the statute of limitations and would be unrecoverable. However from 2009 to 2015 there would still be a viable breach of contract or account stated claims that could result in the reimbursement of the moneys overpaid. The defense to not paying this could be an equitable defense, which is laches, meaning too many things have changed to preclude recovery and you should have made the claim earlier. However, this most likely would be a weak claim in this situation, unless for some reason the amount is so high that they cannot pay you; but most likely there would be money to pay you.
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Customer reply replied 2 years ago
Thanks, ***** ***** the exact years I am billing her for. But, I do feel that it was her responsibility to bill correctly. Yes, we should have noted it, I think it would just be good business sense to correct the errors, based upon our monthly billing.
Consumer Protection Lawyer: Damien Bosco, Attorney replied 2 years ago
Hello:
Yes. it was her responsibility to follow the contract.
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Damien Bosco
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