Virginia 340B Health Center Under Fire for Predatory Debt Collection

Nearly one third of working-age adults in the U.S. are in medical debt, according to the most recent data from The Commonwealth Fund. Of those adults with medical debt, 40% have had to cut back on basic necessities to pay back their debt.  

Considering this rising issue, ProPublica reported on the medical debt collection practices of non-profit hospitals and clinics across the country. One community health center in Virginia, which participates in the 340B drug discount program, was spotlighted for its aggressive debt collection practices. This health center sued a couple over a bill that was originally $59, but ballooned 600% within months due to interest, court costs, and lawyer fees. According to the health center’s chief financial officer, this practice was introduced to maximize revenue for the center. However, under federal law, community health centers are required to provide discounted care to low-income individuals. 

Designed to help uninsured and underinsured patients afford care, increasingly, non-profit health systems and clinics are implementing predatory debt collection practices that harm vulnerable patients. According to the report, patients and families have suffered garnished wages, diminishing their ability to meet daily needs and deterring them from seeking future healthcare. For many patients, these bills were unexpected.  

The aggressive debt collection practices of tax-exempt hospitals and publicly-funded clinics signal a troubling trend: the corporatization of healthcare is accelerating, and patients are bearing the cost. 

Read the full article here: https://www.propublica.org/article/federally-qualified-health-centers-unpaid-bills-lawsuits