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Medical Debt Crisis In North Carolina

How Nonprofit Hospitals Contribute to the Medical Debt Crisis in North Carolina

This blog explains how hospitals contribute to the medical debt crisis in North Carolina. According to a recent analysis by the North Carolina State Health Plan, several of the state’s nonprofit hospitals “charged the poor approximately three times the national average.” 12 to 30 percent of people with medical debt were eligible for charity treatment in 2019 but did not receive it. Instead, ‘charitable’ hospitals taxed patients and pursued aggressive methods to collect on invoices, including harming credit ratings, garnishing income, and bringing lawsuits.

The COVID-19 epidemic has only exacerbated the situation, and nonprofit institutions are feeding North Carolina’s medical debt disaster. Recent studies indicate that despite nonprofit hospitals’ tax-exempt status, many of them do not provide appropriate charitable care. The state does not regulate how nonprofit hospitals carry out their humanitarian aims, hence charity care as a whole fails to safeguard “financially disadvantaged people from debilitating medical debt.”

As of June 2020, it was predicted that $140 billion in medical debt was being collected in the United States. According to the UCLA Anderson Review, medical debt is relatively concentrated among the most economically challenged populations in the United States.

Limiting Amounts of Medical Debt

Medical debt might make it impossible to obtain a vehicle loan, a mortgage, or even a job. After an unforeseen injury or sickness, it can be quite difficult to change your life if you have a poor credit score and regular debt collection. Thankfully, there is hope for people with overwhelming medical debt.

Insolvency As a Resolution

Medical debts can be discharged (erased) in bankruptcy. After a bankruptcy discharge, creditors are no longer permitted to record on credit reports, collect debts, or garnish bank accounts. This procedure provides individuals with the necessary fresh start following an illness or accident. If medical debt is holding you hostage contact Hoard Law today for help.