Health Care Bill Cracks Down on Abuses by Charitable Hospitals
Published: 2010-07-10 22:30:45By: JOSEPH RHEE | ABC News | March 25, 2010
A little-known effect of the newly-signed health care bill will be sharp new guidelines to prevent so-called "charitable" non-profit hospitals from taking advantage of the people they are supposed to help. Non-profit hospitals have been under fire for years over tactics such as allegedly price-gouging the poor and using aggressive collection tactics to collect debts.
Non-profit hospitals receive a special tax exemption in return for
providing community service and charitable care. However, critics say
some charitable hospitals rake in millions of dollars a year while
providing very low levels of assistance to the poor and uninsured.
Because the uninsured don't have the government or large insurance
companies to negotiate payment rates on their behalf, patients often
have to pay the full "sticker price" for medical services.
ABC Investigation Shines Light on 'Uncharitable' Practices
An ABC News investigation in 2004 detailed how a non-profit hospital in Georgia, Phoebe Putney Memorial Hospital, made tens of millions of dollars in profits while being accused of victimizing some of its own patients. An analysis of the hospital's finances by two whistleblowers, John Bagnato and Charles Rehberg, found that Phoebe charged uninsured patients exorbitant prices for care received. In one instance, ABC News discovered an uninsured patient was charged $3,000 for a medical examination that revealed there was nothing wrong with him. Among his fees was $1,200 for a dye injection for which the supplier only charged the hospital $110.
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