Undoubtedly, patients’ inability to pay for healthcare services is impacting cash flow. For example, uncompensated care (the sum of bad debt and financial assistance provided to patients) reached $46.4 billion at registered community hospitals in 2013. That represents 5.9% of a typical hospital’s overall expenses.1
Many insured patients with large hospital bills have difficulty paying those bills, as their disposable income is typically outweighed by their out-of-pocket costs from deductibles, coinsurance and copays. With this growing issue impacting both underinsured and uninsured patients, the problem often compounds.
1 "Uncompensated Hospital Care Cost Fact Sheet." American Hospital Association. January 2015. Accessed February 10, 2016.