Medical Debt Collection

For Nonprofit Hospitals Who Sue Patients, New Rules

By Paul Kiel, ProPublica. Originally posted here. Republished here under a Creative Commons license.

Non-profit hospitals get big tax breaks for providing care for patients who can’t afford it. Under new IRS rules these hospitals must take extra steps to inform poor patients they may qualify for financial assistance.

Last month, ProPublica and NPR detailed how one nonprofit hospital in Missouri sued thousands of lower income workers who couldn’t pay their bills, then seized their wages, all while enjoying a big break on its taxes.

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