Nearly half of non-profit hospitals are sending bills to individuals for unpaid medical debts even though those individuals qualify for charity or uncompensated care, according to a published report. Those hospitals have written off nearly $3 billion in unpaid debts who would have qualified for financial assistance, according to an analysis of data filed by the hospitals with the Internal Revenue Service.
Individuals who may have otherwise qualified for charity care are often not informed about the opportunity to apply for it, according to the report, which spotlighted one woman, who, when she went to the emergency room with pain in her abdomen, was required to make a deposit before she was treated, and was never told about charity care, even though she would have qualified for it.
In exchange for their non-profit status, those facilities are required to offer a certain amount of charity care to individuals who can not afford to pay their bills.
Some facilities that have been in the media spotlight for being labeled as “too aggressive” with their collection efforts by suing individuals who did not pay their debts may have known that the people they were suing could have qualified for charity care, according to the report.
Internal hospital training documents the attorney general submitted as part of the case showed that St. Joseph workers were advised how to best collect money from patients before they left the hospital. Instead of saying, “Can you pay today?” employees were told to use phrases like “How would you like to pay for that today? Cash, check or credit card?” according to the documents.
“It became this moneymaking system,” Rachael Murphy, a former employee, recalled in an interview. “People would be crying at registration desks, people would be upset, people would walk out.”
Acknowledging that there is a “gap in trust” between individuals and healthcare facilities, some are being more proactive in mentioning charity care and offering more help to patients who file applications.
“We made the assumption that, ‘We give you the information. What more do you need?’ But we realize a lot of patients don’t read it, don’t pay attention,” said Shana Tate, senior vice president of revenue cycle at Ballad Health. “They need someone to hold their hand through this process.”
