Advocate Health, one of the largest non-profit healthcare systems in the U.S., announced yesterday it will cancel judgment liens tied to unpaid medical debt across its six-state service area. This move impacts more than 11,500 properties, with some liens dating back more than 20 years.
What’s happening: As part of its ongoing efforts to overhaul its approach to medical debt, Advocate Health has committed to forgiving medical debt associated with these liens. The organization, which had already stopped filing lawsuits and seeking liens in 2022, is accelerating its debt forgiveness program. This decision was informed by expanded financial assistance policies that make more patients eligible for charity care.
What they’re saying: Brad Clark, CFO of Advocate Health, highlighted the organization’s commitment to addressing the medical debt crisis: “We believe our financial assistance program is among the most generous in the nation. This initiative is a critical step forward in making healthcare more affordable and accessible.”
Zoom out: North Carolina has been at the forefront of attacking what it believes to be a medical debt problem for its residents. Most recently, it initiated a plan that would offer hospitals increased incentives from Medicaid in exchange for forgiving some unpaid medical debts owed by residents in the state.
The bottom line: Advocate Health’s move to cancel these liens represents a significant shift in how large healthcare providers handle medical debt. With more than $6 billion in community benefits provided last year, the health system is positioning itself as a leader in tackling the nation’s medical debt problem.
