Debt collection lawsuits have become a common occurrence in McAlester, a small farming community in Oklahoma. The local hospital, McAlester Regional Medical Center, has filed thousands of such cases over the past three decades, often represented by the father-daughter law firm Hackler & Hackler. The lawsuits, mostly uncontested, result in judgments against patients, causing financial devastation for many. Despite efforts in other states to curb hospital lawsuits against patients, the practice continues in McAlester, where the hospital’s debt collection machine operates quietly with the support of influential individuals in town.
The impact of these lawsuits on the community is significant, with some residents being sued multiple times. The courthouse steps are filled with people like Sherry McKee, who has been sued by the hospital three times, including for a $3,375 bill for vertigo treatment. Janet Roloff, an attorney assisting low-income clients in the area, states that the lawsuits affect a large number of people in the community, with devastating consequences.
McAlester, once a bustling coal mining boom town, has seen tougher times in recent years. The downtown area is filled with empty storefronts, and nearly one in five residents live below the federal poverty line. The hospital, operated by a public trust, is also facing financial struggles, operating in the red for years. While it claims to serve the community, offering limited appointments at no cost for low-income patients, the amount of financial assistance provided is minimal compared to its operating budget.
Patients like Renee Montgomery and Dusty Powell share their experiences of losing savings, wages, and even personal possessions due to the lawsuits filed by the hospital. Many residents in McAlester have their own stories, leading some to avoid seeking care at the hospital altogether. The prevalence of medical collection cases nationwide reflects a widespread misunderstanding of the legal process and fear of facing court.
At the center of the hospital’s collection efforts are the Hackler & Hackler law firm. Donald Hackler, a former city attorney and long-time member of local organizations, collaborated with his daughter, Deborah Hackler, in representing the hospital in debt collection cases. Deborah, a deacon at a local church and a municipal judge, has been involved in these cases for 30 years. The hospital’s CEO, Shawn Howard, claims to be unaware of the lawsuits and denies any knowledge of Deborah Hackler.
Efforts to obtain detailed financial information about the hospital’s arrangement with the Hackler firm have been unsuccessful, highlighting the lack of transparency surrounding the lawsuits. Despite the mayor’s ignorance of the lawsuits, the courthouse in McAlester sees regular batches of cases filed by the hospital.
The stories and experiences of the people of McAlester shed light on the ongoing issue of medical debt in America. The Diagnosis: Debt series, a collaboration between KFF Health News and NPR, explores the scale, impact, and causes of medical debt and aims to bring awareness to the issue. It draws on original polling, court records, federal data on hospital finances, and a nationwide investigation into the financial assistance and collection policies of hospitals.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
