It is definately a contract violation. According to most payer contracts, a reasonable effort must be made to collect on copays, coinsurance, and/or deductibles. If the provider fails to do so then they are seen as creating an 'unfair playing field' for other providers. Most contracts have stipulations as in to what is considered a 'reasonable effort' on attempting to collect from a patient.
I have a provider out of Hawaii who does this constantly. His contract goes as far as stating that if they were to become aware of this (i.e. him giving 20% breaks on bills), that they (HMSA) would pursue him and require that he extend that discount to them in addition to their already discounted rates. The best I've been able to accomplish with him is to send him all the publications that tell him what he is exposing himself to for breach of contract however it is his practice and he makes the final call on write-offs.
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