Saturday, September 24, 2022

NY Times Reports on Nonprofit Hospital Collection Efforts

The New York Times today published the result of a long study of nonprofit hospitals, focusing on Providence Health Care's aggressive collection practices against indigent patients entitled to charity care.   Unsurprisingly, to those who follow nonprofit health care, the report is not positive:   

In 2018, senior executives at one of the country’s largest nonprofit hospital chains, Providence, were frustrated. They were spending hundreds of millions of dollars providing free health care to patients. It was eating into their bottom line.  The executives, led by Providence’s chief financial officer at the time, devised a solution: a program called Rev-Up.  Rev-Up provided Providence’s employees with a detailed playbook for wringing money out of patients — even those who were supposed to receive free care because of their low incomes, a New York Times investigation found.  In training materials obtained by The Times, members of the hospital staff were instructed how to approach patients and pressure them to pay. “Ask every patient, every time,” the materials said. Instead of using “weak” phrases — like “Would you mind paying? — employees were told to ask how patients wanted to pay. Soliciting money “is part of your role. It’s not an option.” If patients did not pay, Providence sent debt collectors to pursue them. 

More than half the nation’s roughly 5,000 hospitals are nonprofits like Providence. They enjoy lucrative tax exemptions; Providence avoids more than $1 billion a year in taxes. In exchange, the Internal Revenue Service requires them to provide services, such as free care for the poor, that benefit the communities in which they operate.  But in recent decades, many of the hospitals have become virtually indistinguishable from for-profit companies, adopting an unrelenting focus on the bottom line and straying from their traditional charitable missions.

For another report focusing on the collection activities of nonprofit hospitals in New York, see Discharged Into Debt.  Also see this NY Times editorial published in February 2020.

 

dkj

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https://lawprofessors.typepad.com/nonprofit/2022/09/ny-times-reports-on-nonprofit-hospital-collection-efforts.html

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