A not-for-profit company will acquire the patients’ debt from hospitals at a fraction of face value and pays it off with private donations raised, as well as public funding.
The city Health Department has entered into an agreement with the nationalRIP Medical Debt acquires the patients’ debt from hospitals at a fraction of face value and pays it off with private donations raised, as well as public funding.
The city, whose Health+Hospitals agency runs 11 municipal hospitals and 70 clinics, stands to benefit as well, since its medical providers might not get back as much if anything on the debt they’re owed without such a move.
RIP Medical Debt has cancelled $9.8 billion in outstanding hospital bills for 6,633,189 American families., or nearly 23%, to $27.2 billion, in fiscal year 2021-22, with the immense financial burden shared by federal, state and local taxpayers. Hospitals also can use the opportunity to deliver health equity to low-income and financially strapped patients as part of their “charity care programs and better serve their communities,” the group said. in New York has issued stinging reports on New York hospitals that have sued patients who failed to pay their bills.
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