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Tuesday, April 23, 2024

Health care information corporations sued over allegedly charging sales tax for medical records retrieval

Medicalrecords

BALTIMORE (Legal Newsline) - A Maryland man is suing a health information technology corporation and its parent private equity investment firm over claims they knowingly charged sales tax for medical records in violation of the state's tax codes and its Consumer Protection Act.

Lawrence Gwozdz, individually and for Donna Gwozdz and all others similarly situated, filed a class action complaint in Circuit Court for Montgomery County, Md. against Healthport Inc., Healthport Technologies LLC, and Abry Partners LLC, alleging negligent misrepresentation, fraud, wrongful taking, and unjust enrichment.

The case was removed to federal court on July 31.

Under Maryland's health code, patients who request medical records from their healthcare providers may be charged no more than 77 cents per page, plus a retrieval fee and the cost for postage and handling, the suit says.

The complaint states that Maryland's statutory law does not permit sales tax to be charged to patients requesting medical records, but Gwozdz was charged $6.27 in sales tax when ordering records from Washington Adventist Hospital, then was charged $16.78 when ordering records from Suburban Hospital, he says.

The complaint alleges that the defendants knowingly and unlawfully charged sales tax to the plaintiff and others in the class.

The plaintiffs and others in the class seek damages of more than $75,000, injunctive and declaratory relief, and court costs. They are represented by Jonathan B. Nace of Paulson & Nace in Washington, D.C.

U.S. District Court for the District of Maryland 8:15-cv-00251-RWT

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