Medical bills account for 58% of debt collection processes in the United States and cause hundreds of thousands of people to file for bankruptcy.
Of the 100 highest-revenue hospitals in the United States, at least 26 contributed to this drama by filing tens of thousands of lawsuits for non-payment of bills between 2018 and mid-2020, according to research from Johns Hopkins University reported by the outlet. informative Axios.
Hospitals continued these "predatory billing practices" even amid the COVID-19 pandemic, according to the researchers, although there were fewer lawsuits than in the previous two years.
The study revealed that 26 of the hospitals filed about 39,000 lawsuits against patients, averaging $ 1,842 per person.
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In the meantime, the cost of hospital care has continued to rise, and that price is often much higher than what the service actually costs, when compared to the rates of Medicare, the government-run social security coverage program.
The 100 most powerful hospitals charged patients 7 times the cost of the media service.
Private for-profit hospitals average a profit margin of almost 12 times.
Charges are almost never the actual price paid by insurers, but can be used to collect from uninsured patients.
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A 2017 study revealed that each additional dollar of the price generates an additional 15-20 cents in revenue for the hospital, incentivizing higher profit margins.
Patients suffer from the rate war between hospitals and insurers, and while many don't end up paying inflated prices, they do bear the costs with higher premiums and surprise bills.
"Most hospitals do not engage in this form of predatory billing. But those that do, threaten the great public confidence in the medical profession," explained Marty Makary, principal investigator of the project, to Axios.
These legal actions hatched into wage garnishments and property liens.
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Among the large hospitals that demand the most from their patients are those in one state: New York.
"It was the most aggressive region in the country in predatory billing," said Marty Makary, a Johns Hopkins University professor and principal investigator on the study.
The state is home to three of the six hospitals that filed the most lawsuits and the one that demanded the most money.
Melissa Wilhelm Szymanski opens some of her medical bills at her home in Glastonbury, Connecticut on Saturday, Sept. 19, 2020.AP Photo / Jessica Hill
Almost two-thirds of the hospitals that sued patients are non-profit organizations, only one is for-profit, and eight are government-owned.
Nonprofits comprise about two-thirds of the top 100 hospitals
, but that status exempts them from paying taxes, in exchange for providing free medical care or offering deep discounts for patients who cannot afford it.
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The American Hospital Association (AHA) defended itself by calling these actions "a last resort."
“Our doors are always open, regardless of the patient's ability to pay.
Hospitals have provided more than $ 702 billion in uncompensated care to patients since 2000, for which no payment was received from patients in need, ”an AHA spokesperson said in a statement.
"The reality, however, is that the health care system must be adequately funded to ensure that hospitals and health systems can remain open and be there for their communities in times of need," they argued.
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Some of the highest-earning hospitals in the country took patients to court for bills that were, on average, less than $ 2,000.
However, the number of lawsuits has been declining over the years, with hospitals filing nearly 21,000 lawsuits in 2018, 16,510 in 2019 and 1,661 in 2020, although the report looks at court records as of the end of July last year.