Tennessee Supreme Court Overturns COA Dedmon case - Key Decision for Personal Injury cases on Medical Bill Evidence

Posted on Nov 17 2017 1:19PM by Attorney, Jason A. Lee

The Tennessee Supreme Court issued a very important decision today on the appeal in the Dedmon case.  Many people have been waiting on this decision from the plaintiff’s side and the defendant’s side.  The Dedmon case was the case where the Tennessee Court of Appeals ruled that defendants, in personal injury cases, could introduce evidence of the discounted amounts accepted by health providers or paid by insurance companies.  I previously blogged on this prior ruling here.  


The Tennessee Supreme Court reversed the key part of the prior Tennessee Court of Appeals decision today.  The key part in the new case (and a good summary of the current status of the law on this issue) is the following:


In sum, we hold that the definition of “reasonable charges” under the Hospital Lien Act set forth in West v. Shelby County Healthcare Corp., 459 S.W.3d 33 (Tenn. 2014), does not apply directly to determinations of “reasonable medical expenses” in personal injury cases; the West definition of “reasonable charges” is limited in application to interpretation of the Hospital Lien Act. We also decline to alter existing law in Tennessee regarding the collateral source rule. Consequently, the Plaintiffs may submit evidence of Mrs. Dedmon’s full, undiscounted medical bills as proof of her “reasonable medical expenses,” and the Defendants are precluded from submitting evidence of discounted rates for medical services accepted by medical providers as a result of Mrs.  Dedmon’s insurance. The Defendants remain free to submit any other competent evidence to rebut the Plaintiffs’ proof on the reasonableness of Mrs. Dedmon’s medical expenses, so long as the Defendants’ proof does not contravene the collateral source rule.  Thus, we affirm the Court of Appeals’ decision to reverse the trial court’s grant of the Defendants’ motion in limine, but we reverse the Court of Appeals to the extent that it held that the Defendants could introduce evidence of lesser amounts accepted by Mrs. Dedmon’s medical providers in order to rebut the Plaintiffs’ proof on reasonableness.


As a result, this basically returns the status of the law on this issue in Tennessee to the prior status quo.  Usually, the only evidence that a jury will now hear about the medical bills in a case is the amount of the medical bills charged by the medical care provider.  This effectively greatly inflates (in many situations) the amount of “medical bills” for an injury.  However, this is the law in Tennessee.  I expect this will not be the end of this issue and the Tennessee Legislature will take a look at trying to find a solution in the coming years.


The complete decision can be found at this link: Jean Dedmon v. Debbie Steelman et al, No. W2015-01462-SC-R11-CV (Tenn. 2017).

Follow me on Twitter at @jasonalee for updates from the Tennessee Defense Litigation blog.

TAGS: Tennessee Tort Reform, Damages, Torts, Civil Procedure
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Jason A. Lee is a Member of Burrow Lee, PLLC. He practices in all areas of defense litigation inside and outside of Tennessee.

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