Martinez v. Milburn Enterprises., Inc

In Martinez v. Milburn Enterprises., Inc., 290 Kan. 572, 233 P.3d 205 (Kan. 2010), the third case cited by Brethren, the appellant slipped and fell while shopping at the appellee's business, necessitating surgery on her back and causing her to incur hospital charges in the amount of $70,496.15. Id. at 208. The hospital wrote off $65,186.15 and accepted $5,310.00 in full satisfaction of the cost for medical services rendered to the appellant. Id. At trial, the court precluded the appellant from submitting evidence of medical bills in excess of the amount accepted by the hospital. Id. On appeal, the Kansas Supreme Court framed the issue as being whether in a case involving private health insurance write-offs, the collateral source rule applies to bar evidence of (1) the amount originally billed for medical treatment or (2) the reduced amount accepted by the medical provider in full satisfaction of the amount billed, regardless of the source of payment. Id. The Martinez Court held that the collateral source rule did not bar either type of evidence. Id. In its analysis, the Court observed that "Kansas courts do not reflexively order liable defendants to pay the full amounts billed by the health care providers to injured plaintiffs. Kansas courts instead have typically based the value of damages on the reasonable expense of treatment." Id. at 221. The Martinez Court then cited to the Kansas Automobile Injury Reparations Act, which provides that "'the charges actually made for medical treatment expenses shall not be conclusive as to their reasonable value,'" and that "'evidence that the reasonable value thereof was an amount different from the amount actually charged shall be admissible.'" Id. at 222 (quoting K.S.A. 40-3117). The Court reasoned that evidence relevant to the determination of reasonable value other than the amounts charged "may include write-offs or other acknowledgments that something less than the charged amount has satisfied, or will satisfy, the amount billed." Id. Accordingly, the Court held that both the amount originally billed for medical treatment and the reduced amount actually accepted by the medical provider in full satisfaction of the amount billed "are relevant to prove the reasonable value of the medical treatment, which is a question for the finder of fact." Id. at 208.