Terry Belk, who owed thousands for cancer treatment for himself and his late wife, said he was stunned by a call from Atrium Health telling him the lien on his home was canceled.

Less than a week after NBC News detailed how the hospital system Atrium Health of North Carolina aggressively pursued former patients’ medical debts, placing liens on their homes to collect on hospital bills, the nonprofit company announced it would cancel those obligations and forgive the unpaid debts associated with them. Some 11,500 liens on people’s homes in North Carolina and five other states will be released, Atrium’s parent company, Advocate Health, said with some dating back 20 years or more.

Advocate Health said it is changing its policy now as “the next logical step” following a 2022 decision to stop filing lawsuits and property liens to collect on patients’ medical debts. The company declined NBC News’ request for an interview about the shift.

  • dohpaz42@lemmy.worldEnglish
    7·
    2 months ago

    How fucked up this is not withstanding, I can sort of understand that a business has costs and needs to recoup those costs if their customers fail to pay.

    But, this is not just any business: it’s a non-profit that is tax exempt with the requirement that they perform charity among other requirements. Suing and putting liens on houses is not charitable.

    First, hospitals absolutely need to have clear and transparent pricing. And if hospitals still want to sue people and put liens on their houses, they should lose their tax exempt status.