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AS PASSED BY THE SENATE
June 2, 2004
H. 4721
S. Printed 6/2/04--S.
Read the first time April 29, 2004.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 15-75-45 SO AS TO PROVIDE FOR PUNITIVE DAMAGES WHEN A PERSON, WITH INTENT TO AVOID PAYMENT FOR A SERVICE RENDERED, KNOWINGLY SECURES PERFORMANCE OF THE SERVICE BY DECEPTION, THREAT, OR FALSE TOKEN OR BY AGREEING TO PROVIDE COMPENSATION AND FAILING TO MAKE PAYMENT AFTER RECEIVING A DEMAND FOR PAYMENT, TO PROVIDE FOR THE ELEMENTS OF THEFT OF SERVICE, TO DEFINE "SERVICES", AND TO PROVIDE FOR A DEFENSE.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 75, Title 15 of the 1976 Code is amended by adding:
"Section 15-75-45. (A) Absent an agreement providing otherwise, a person engages in the theft of health care services if the person: (1) intentionally or knowingly secures performance of a health care service which is provided only for compensation; (2) has received insurance proceeds or payment from a third party for health care services; and (3) does not remit payment to the health care provider as provided in subsection (C).
(B) If payment is not made when the health care services are provided, notice of payment due must be sent by the health care service provider by registered or certified mail, return receipt requested, to the address of record for the person who received the services, or who is a guardian or an agent for the person who received the services. Written notice, which must be separate from the regular billing notices provided by the health care provider, given in accordance with this subsection is presumed to be received no later than ten days after it was sent unless returned by the post office.
(C) When a person fails to pay within ninety days for health care services rendered, a cause of action is created pursuant to subsection (A) for actual damages for nonpayment of services rendered. The health care service provider who brings an action against a person for failure to pay for services as provided in subsection (A) is entitled to allege liquidated damages in accordance with the following:
(1) for a first occurrence by a person, actual damages plus ten percent of actual damages;
(2) for a second occurrence by the same person, actual damages plus twenty percent of actual damages; or
(3) for a third or subsequent occurrence by the same person, actual damages plus thirty percent of actual damages.
(D) It is a defense to an action brought pursuant to this section that:
(1) the defendant secured the performance of the health care service by giving a postdated check to the person performing the service and the person performing the service or any other person presented the check for payment before the date on the check;
(2) the services were not rendered in a competent manner by the health care provider or the health care provider's services fail to meet the accepted standard of care for similar health care service providers;
(3) the services were covered under a health care insurance plan and payment owed by the health care insurance company has not yet been received by the health care provider for the services provided to the person; or
(4) the notices of payment due are not sent as provided by subsection (B).
(E) A health care service provider who accepts a down payment for compensation in order to perform health care services for a person and fails to perform the services is subject to a cause of action for reimbursement of the down payment made and is also subject to allege liquidated damages in accordance with the following:
(1) for a first occurrence by the health care service provider, actual reimbursement plus ten percent of actual reimbursement;
(2) for a second occurrence by the same health care service provider, actual reimbursement plus twenty percent of actual reimbursement; or
(3) for a third or subsequent occurrence by the same health care service provider, actual reimbursement plus thirty percent of actual reimbursement.
(F) Any inconsistent provision of this section does not supercede any provisions of the South Carolina High Cost and Consumer Loans Act, Sections 37-23-10 et seq."
SECTION 2. This act takes effect upon approval by the Governor and applies to health care services rendered on and after the effective date.
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