How much will debt pay? With an auction, winning bidders may get to keep all of the money they collected as well. There are a couple of websites set up to do this already, and most of the time the hospital has the final say over who is awarded the big, and it may not be the highest. With around 50% of the hospitals in the country teetering on the brink of insolvency, there might be more of this to come. The American Hospital Association estimated that 6% of all costs are either unpaid bills or charity, and this was based on a number of around 5,000 community hospitals. Will there be more people losing houses?
Also in the news this week, Tenet sold 4 more hospitals…and one might guess they are more than likely not the top profit earners for the organization. Where does it all end. The country appears to not only be facing a shortage of doctors in the future, but perhaps hospitals as well. There are also continuing legal battles between hospitals on collecting from each other over contracted rates paid when patients are seen “out of network”…something the state of California is looking in to at present…BD
In a move that consumer groups say could increase pressure on people with unpaid medical bills, some hospitals are trying out a new tactic to recoup patients' debts: They're auctioning the debt online reported by the Wall Street Journal. Hospitals have long relied on outside collection agencies to go after debtors. Under traditional arrangements, these agencies receive a percentage of any money they get from a debtor; the more they collect, the more they earn.